Seeing “1 month free” on Streeterville listings and not sure what that really means? You are not alone. In a neighborhood full of luxury high-rises and rotating specials, the number that matters most is the one that captures your out-of-pocket cost, not just the headline rent.
In this guide, you will learn the difference between gross rent and effective rent, how to value concessions, and how to compare offers apples to apples. You will also get simple formulas, worked examples, and a quick checklist you can use before you sign. Let’s dive in.
Effective rent vs gross rent: the basics
Gross rent is the advertised monthly amount you see on a listing or lease. It does not account for free months, credits, broker fees paid by the landlord, or extra charges like amenities and parking.
Effective rent is the average monthly cost you actually pay over the full lease once you factor in concessions, recurring fees, and one-time charges. When you compare buildings, effective rent is the number to use.
A simple formula you can use:
- Effective rent = (Total rent billed over the lease + recurring tenant fees + one-time tenant charges − total concessions/credits you receive) ÷ lease months
For a single free month:
- Effective monthly rent = (Monthly rent × lease months − value of free month) ÷ lease months
Why this matters in Streeterville
Streeterville sits in central Chicago with a high concentration of luxury towers. Competition, seasonality, and new building deliveries often lead to concessions, especially in colder months or when vacancy rises. Two apartments with the same gross rent can have very different effective costs once you add or subtract fees and credits.
You will also see a range of offer structures. Some buildings advertise “no-fee” apartments where the landlord pays the broker. Others may waive amenity fees, credit move-in charges, or discount the first months. These differences can swing your true monthly cost by hundreds of dollars.
What to include in your math
When you compare apartments, list every cash item you will pay or receive during the lease term.
Include these costs:
- Monthly rent per the lease
- Recurring fees you pay: amenity, parking, pet rent
- One-time non-refundable charges: application, admin, move-in fees
- Utilities not included in rent, if you can estimate
Subtract these credits:
- Free months or partial-month discounts
- One-time rent credits, gift cards, or moving credits
- Waived or credited fees (monthly or one-time)
- Landlord-paid broker fee if you would otherwise have paid it yourself
Note refundable deposits separately. They are not a net cost if you get them back in full.
Step-by-step: calculate effective rent
- Get it in writing.
- Ask for a rent schedule by month and a concession addendum showing which months are discounted and any fees waived.
- Tally all tenant outflows.
- Add monthly rent charges, recurring fees over the full term, and any non-refundable one-time fees.
- Subtract all concessions and credits.
- Convert any free months, fee waivers, and landlord-paid broker fees into dollar amounts and subtract.
- Divide by lease months.
- Take the net total you will pay and divide by the number of months in your lease to get your effective monthly cost.
- Normalize lease terms.
- If one building quotes a special on a 13-month lease and another quotes 12 months, compute both offers to a common basis so you can compare cleanly.
Worked examples using Streeterville-style specials
These examples use illustrative numbers only. Replace with actual figures from your offers.
Example A: 1 month free
- Gross: $3,200 per month, 12-month lease, 1 month free
- Effective rent = (3,200 × 12 − 3,200) ÷ 12 = $2,933
Example B: First 2 months at 50% off
- Gross: $3,300 per month, 12-month lease, months 1–2 at 50% off
- Total discount = 0.5 × 3,300 × 2 = $3,300
- Effective rent = (3,300 × 12 − 3,300) ÷ 12 = $3,025
Example C: Landlord pays broker fee
- Gross: $3,100 per month, 12-month lease
- Landlord pays a $3,000 broker fee you would otherwise pay
- Monthly equivalent of that credit = $3,000 ÷ 12 = $250
- Effective rent before other fees = $3,100 − $250 = $2,850
Example D: Amenity fee waived
- Gross: $2,950 per month, 12-month lease
- Monthly amenity fee normally $50, waived for full term
- Credit value = $50 × 12 = $600
- Effective rent reduction = $600 ÷ 12 = $50 per month
- New effective baseline = $2,900 per month
Example E: Adding parking and pet rent
- Baseline effective rent from offer: $2,900 per month
- Add parking $300 per month and pet rent $35 per month
- Adjusted effective monthly outflow = $2,900 + $300 + $35 = $3,235
Use this pattern to plug in your real numbers. Always roll everything up to one monthly figure so you can compare buildings quickly.
Common concession types to watch
You will likely see:
- Free months or partial-month discounts
- Short-term promotional pricing tied to a specific lease length
- Landlord-paid broker fees on “no-fee” listings
- Waived or credited amenity, application, admin, or parking fees
- One-time credits like moving or furniture credits
Treat each item as a dollar value and include it in your calculation. Confirm timing too. An upfront credit can help cash flow more than the same amount spread over the term.
Pitfalls that skew comparisons
- Conditional specials. Some deals apply only if you move by a deadline or choose a specific lease length. Verify the terms.
- Free month timing. If the free month is applied at the end and you leave early, you may never realize that discount.
- Hidden fees. Amenity, parking, pet rent, and utility pass-throughs add up. Request a full list.
- Broker fee surprises. Confirm who pays the broker and ensure that arrangement is written in the lease or addendum.
- Non-refundable vs refundable. Only include non-refundable fees as costs. Track deposits separately.
Cash flow at move-in
Even when effective rent looks great, the first month’s cash need can be higher than you expect. Ask for a move-in cost summary that shows:
- First month’s rent and any prorations
- Security deposit or non-refundable move-in fees
- Any required insurance or key fees
- Whether the concession is applied upfront or later
If cash flow matters, prioritize offers with early credits or waived move-in costs.
Lease terms to confirm in Chicago
Streeterville renters are covered by the Chicago Residential Landlord and Tenant Ordinance. While every building’s paperwork is different, you should confirm:
- Exact concession wording in the lease or an addendum
- A rent schedule listing each month’s charges and any waived fees
- Security deposit handling and required receipts if applicable
- Renewal timing and what to expect on rent increases
- Early termination and subletting rules, including any concession clawbacks
Put every promise in writing. Verbal offers do not count.
Quick comparison checklist
Use this when you gather quotes from multiple Streeterville buildings:
- Ask for a written rent schedule and concession addendum
- Confirm included utilities vs tenant-paid utilities
- List monthly fees: amenity, parking, pet, storage, internet if required
- Note one-time non-refundable fees and estimated deposits
- Verify broker fee arrangements and get it in writing
- Calculate effective rent using the full lease term
- Normalize for different lease lengths so you compare evenly
- Review renewal terms, notice periods, and potential increases
When a “free month” is not automatically better
A headline special can mask higher fees elsewhere. A building offering one month free might still be more expensive than a competitor that waives amenity fees and pays your broker. Always convert everything to the effective monthly cost and compare on that basis. Then consider lifestyle factors like location, view, and finishes once the math makes sense.
How Strato Living can help
If you want help running these numbers or verifying fine print, you can lean on a local team that does this every day. Strato Living’s apartment locating service is complimentary for renters. You will get a curated shortlist, tour coordination, virtual tours if you are out of market, and clear, side-by-side comparisons that highlight effective rent, fees, and timing. Ready to find the right Streeterville deal with confidence? Connect with Strato Living.
FAQs
What is the difference between gross rent and effective rent in Streeterville?
- Gross rent is the advertised monthly price, while effective rent averages your true monthly cost after accounting for concessions, recurring fees, and one-time charges over the lease.
How do I calculate effective rent on a 1-month-free special?
- Multiply gross rent by lease months, subtract the value of the free month, then divide by the number of months in the lease to get the average monthly cost.
Should I count a landlord-paid broker fee as a discount?
- Yes, if you would otherwise pay that fee yourself, treat it as a monetary concession and subtract it when you compute your effective rent.
Which fees should I include when comparing Streeterville apartments?
- Include amenity fees, parking, pet rent, utilities you pay, and any non-refundable move-in or admin charges; exclude refundable deposits from your cost unless they are not returned.
Are free months better than waived fees when renting in Streeterville?
- It depends; convert both to dollar values and compare the effective monthly cost, since a waived amenity fee or landlord-paid broker fee can outweigh a free month.
What documents should I ask for before I sign a lease?
- Request a written rent schedule, a concession addendum, a list of recurring fees, a summary of move-in costs, and written confirmation of who pays any broker fee.
