Stated rent is the rent amount paid by the occupant to the landlord as specified in the lease. Stated rent does not account for any concessions or landlord costs in securing the lease such as leasing commissions and tenant improvements. Stated rent contrasts to effective rent which accounts for such items.
For example, a 12 month lease at a rate of $1,000 per month with one month free would have a stated rent of $1,000 per month, but an effective rent of $916.67 per month ($1,000 stated rent times 11 months of payment divided by 12 month term). Also known as face rent or contract rent.
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Hypothetical example(s) are for illustrative purposes only and are not intended to represent the past or future performance of any specific investment.
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