The direct answer
Gross rent, effective rent and collected rent describe different stages of rental income. Gross or stated rent reflects the contractual or scheduled amount, effective rent adjusts for concessions over a period, and collected rent reflects cash actually received under the accounting convention used.
Start with the lease economics
Scheduled rent is the contractual amount before vacancy, concessions or collection problems. Keep other income such as parking or utilities separate unless the analysis explicitly defines a broader gross-income measure.
To apply the approach to an editable scenario, use the Rent Increase Calculator. For the neighboring question, explore Prorated Rent Calculator.
Amortize concessions consistently
Effective rent can spread a concession across the lease term to show the economic rent. For example, one free month on a twelve-month lease reduces effective monthly rent even though the stated monthly rent is unchanged.
Track collections separately
Collected rent answers a cash-realization question. Delinquency, bad debt and timing can cause collected rent to differ from both scheduled and effective rent, so property operating reports should define which measure they use.
Worked example
A lease states $2,000 per month for 12 months with one free month. Scheduled annual rent is $24,000, while the concession-adjusted effective rent is $22,000 for the year, or about $1,833 per month. Actual collected rent could be lower if payments are missed.
Common mistakes and limitations
Do not compare a property reporting scheduled rent with one reporting collected rent as though the figures were calculated on the same basis.
Pure arithmetic. It does not determine whether a rent increase is legally permitted in a specific jurisdiction.
Frequently asked questions
Is effective rent the same as cash collected?
No. Effective rent adjusts lease economics for concessions; collections depend on actual payments.
Can gross rent include other income?
Terminology varies. Define the measure explicitly before comparing properties or importing data.
Sources and further reading
The article’s examples are illustrative arithmetic. The references below provide context for operating, valuation or transaction concepts; they do not endorse the assumptions or the calculator.
- GovInfo / HUD — 24 CFR §880.608 — Security deposits (federal housing program example)Program-specific example referencing state/local deposit requirements; not a national interest-rate rule.
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