Property Management

In Tennessee, 'effective rent' differs from 'asking rent' because effective rent:

AIs always higher than asking rent
BAccounts for concessions such as free rent periods or tenant improvement allowances✓ Correct
CIs the rent after utility deductions
DIs only used for commercial properties

Explanation

Effective rent is the actual economic rent after accounting for concessions — free rent periods, tenant improvement allowances, or other incentives that reduce the actual economic benefit to the landlord.

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