1. What is Net Effective Rent (NER)?

Net Effective Rent (NER) is the average rent per unit, calculated by dividing the total rent income by the number of rental units. It helps property owners and managers understand the average rental income per unit.

2. How Does the Calculator Work?

The calculator uses the NER equation:

Where:

• Total Rent Income — Sum of all rental income (in selected currency)
• Number of Rental Units — Total count of rented units

Explanation: The equation provides a simple average of rent per unit, useful for comparing properties or assessing rental performance.

3. Importance of NER Calculation

Details: NER helps property owners evaluate rental income efficiency, compare properties, and make informed decisions about pricing and investments.

4. Using the Calculator

Tips: Enter total rent income in your preferred currency, the number of rental units, and select the currency. All values must be valid (income > 0, units ≥1).

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between NER and gross rent?
A: NER shows the average per unit, while gross rent is the total amount without considering the number of units.

Q2: Should I include vacant units in the calculation?
A: Typically no - NER usually calculates based on occupied units only to measure actual rental income.

Q3: How often should NER be calculated?
A: Monthly or quarterly calculations help track rental performance over time.

Q4: Can NER be used for commercial properties?
A: Yes, NER can be calculated for any rental property type, though commercial leases may require additional considerations.

Q5: How does NER help in property valuation?
A: Higher NER generally indicates better rental performance, which can increase property value.