This article shows the difference between Net Effective Rent and Market Rent.
Net Effective Rent
If a property pays based on Net Effective Rent, they will:
- Calculate the value of concessions (like weeks free)
- Deduct the correct proportion from the full rent amount
- Apply the commission only after that adjustment
In other words, commission is calculated on the discounted/effective rent, not the full rent.
Market Rent
If a property pays based on Market Rent, they calculate commission based exclusively on the rent amount, without deducting concessions or weeks free.
In other words, commission is calculated on the full listed rent.
Tip: Always confirm with the property whether they pay on Net Effective or Market Rent before submitting — choosing the wrong type can delay payment.