## How about a math trick?

Gross vs. Net Effective Rent can be very confusing.

Think of it like this: Gross is more akin to the monthly rent you're really playing. Net is what the math makes you look like you're playing after you factor in a temporary discount when you sign the lease.

Keep in mind that landlords think in "lease terms" -- for example, a one year lease wouldn't be $1800 a month. It's $1800 x 12 (the

Now, let's say you get one month free. That means, technically speaking you're paying $1800 x 11, meaning $19,800 for the year. Divided by 12, that means you're only paying $1650 a month!

But wait... One month was free. That means, next year (assuming the rent doesn't go up and assuming you don't get another free month) you're paying $1800 a month, definitely not $1650.

And that's how the $1650 apartment you saw in the listing actually turns out to be $1800, and why you'll likely have to qualify for least $1800 x 40 (or more) as the minimum income requirement, not $1650 x 40.

So, $1650 is the net effective rent, but the gross rent is $1800.

Think of it like this: Gross is more akin to the monthly rent you're really playing. Net is what the math makes you look like you're playing after you factor in a temporary discount when you sign the lease.

*I wouldn't call either deceptive, but they can be confusing.*Keep in mind that landlords think in "lease terms" -- for example, a one year lease wouldn't be $1800 a month. It's $1800 x 12 (the

*term*of the lease.) That's $21,600.Now, let's say you get one month free. That means, technically speaking you're paying $1800 x 11, meaning $19,800 for the year. Divided by 12, that means you're only paying $1650 a month!

*Wow!*But wait... One month was free. That means, next year (assuming the rent doesn't go up and assuming you don't get another free month) you're paying $1800 a month, definitely not $1650.

And that's how the $1650 apartment you saw in the listing actually turns out to be $1800, and why you'll likely have to qualify for least $1800 x 40 (or more) as the minimum income requirement, not $1650 x 40.

So, $1650 is the net effective rent, but the gross rent is $1800.

*Got it?*