Leasing
Leasing fundamentals
Leasing connects marketing, screening, lease execution, and retention. Know the prospect funnel, fair housing requirements, consistent application criteria, lease terms, concessions, security deposits, renewal strategies, and occupancy measures. Physical occupancy counts occupied units; economic occupancy accounts for rent collected, concessions, vacancy, and delinquency. Net effective rent is the true revenue after concessions and free rent. Application screening should use written, consistently applied criteria that focus on legitimate business factors such as income, credit, rental history, and criminal history where legally permitted.
Traps
Questions often test inconsistent screening or steering prospects toward or away from certain areas. Oral promises, hidden fees, and discriminatory advertising are also traps. Do not compare face rent across properties without adjusting for concessions, lease term, and included services. Watch for confusing occupancy with economic occupancy, and for treating a renewal as automatic when rent or service changes.
Worked example
A 12-month lease has face rent of $1,500 per month and one month free. Total rent collected = 11 × $1,500 = $16,500. Net effective monthly rent = $16,500 / 12 = $1,375. If the property instead gives $500 off per month for 12 months, net effective rent is $1,000. Rule of thumb: quote both face rent and net effective rent when concessions are material, and document the lease terms precisely.