Example
A building advertises $2,400 a month with one month free on a 12-month lease. The tenant pays 11 × $2,400 = $26,400 for the year, a net effective rent of $2,200 a month. At renewal, the landlord will usually quote the increase from $2,400, not $2,200, so a 3% renewal becomes $2,472: 12% more than the tenant actually paid each month on average.
In a lease it looks like…
As a concession, rent for the second month of the term is waived. If Tenant ends this Lease early or is evicted, the waived rent of $2,400 becomes due.
Good to know
Two things to check before signing: whether the concession has to be paid back if you leave early, and which rent the renewal starts from. Both are in the lease, not in the ad.
Plain English, not legal advice. Last reviewed September 29, 2026.