Headline rent vs. effective rent

Headline rent refers to the amount stated in the lease agreement as the rent to be paid for the rental of the property. This amount does not include any discounts, incentives or other factors that could reduce the total amount paid by the tenant. It is essentially a "window" rent that serves as a starting point for negotiations between the landlord and the prospective tenant.

The effective rent is the realistic amount that the tenant will pay after taking into account all discounts, incentives and other factors that reduce the total cost of rent. Effective rent gives a truer picture of the actual costs associated with renting a property than gross rent.