How to Use the Net Effective Rent Calculator

Step 1: Input the Base Rent

Start by entering the base rent amount you plan to charge per month. This is the standard monthly rent before any discounts or allowances.

Step 2: Enter the Lease Term

Next, specify the duration of the lease in months. This informs the calculator of how long the rental agreement will last.

Step 3: Specify Rent-Free Months

Indicate how many months of free rent you are offering to the tenant, if applicable. This will affect the overall earnings from the property.

Step 4: Provide Tenant Cash Allowance

If you are offering a financial incentive to tenants for improvements, input the tenant cash allowance amount.

Step 5: Calculate Operating Costs

Enter any monthly operating costs associated with the rental property, such as maintenance and repairs.

Step 6: Calculate the Net Effective Rent

Finally, click on the “Calculate Net Effective Rent” button to see the result. The calculator will display the net effective rent, showing you how much you can expect to earn annually after accounting for all the factors mentioned above. Understanding net effective rent is crucial for comparing different rental options and making sound decisions as a landlord.