How should I compare two free rent months with a lower monthly payment?
HousingThe advert said $1,800 a month. The payment schedule said $2,100 for the first twelve months, with months thirteen and fourteen free. The agent called $1,800 the net effective rent and said the offer was better than the $1,900 flat I'd also viewed.
Both proposed US agreements run for fourteen months. Using only these quoted figures, the concession totals $25,200, or $1,800 averaged over the term. The other flat totals $26,600. The first is cheaper overall, but the rent portion of my working monthly budget is $1,950. I would need savings to cover the higher payments until the free months arrived.
I haven't checked the full concession conditions, what happens if the tenancy ends early or what base rent a later offer would use. My friend says I am being too cautious about an obvious $1,400 saving. I can see the saving; I am less clear about the cash timetable that comes before it.
How do I compare the two offers honestly? I want the lower total cost to count, without presenting an average as the amount I would actually be asked to pay each month.