Revenue
Effective rent
The average monthly rent a resident actually pays over the lease after concessions are subtracted.
Effective rent equals total rent over the lease term, minus the value of concessions, divided by the number of months. A 12-month lease at $1,800 with one month free has an effective rent of $1,650 (21,600 minus 1,800, divided by 12).
Comparing effective rents, not advertised rents, shows what the market is really paying. It is also the fair basis for comparing a discounted new lease with a renewal.
See it on a sample company