Face Rent
Face Rent is a real estate term that refers to the basic or advertised rental rate for a property before considering any incentives, concessions, or additional costs. When people in real estate talk about Face Rent, they're discussing the official asking price that appears on a lease agreement. It's different from the effective rent, which is what tenants actually pay after accounting for things like free months, improvements allowances, or other incentives. Think of it like a car's sticker price versus the final negotiated price - Face Rent is that initial sticker price for rental properties.
Examples in Resumes
Negotiated commercial leases reducing Face Rent by 15% through tenant incentives
Managed portfolio of 50+ properties maintaining competitive Face Rent rates
Successfully increased property value by adjusting Face Rent to match market conditions
Typical job title: "Leasing Agents"
Also try searching for:
Where to Find Leasing Agents
Professional Organizations
Online Communities
Example Interview Questions
Senior Level Questions
Q: How do you determine the appropriate Face Rent for a commercial property in today's market?
Expected Answer: A senior candidate should discuss market analysis, comparable properties, local economic factors, property condition, and how to balance maximizing revenue with maintaining high occupancy rates.
Q: Explain your strategy for negotiating Face Rent versus effective rent with potential tenants.
Expected Answer: Should demonstrate understanding of various concession packages, ability to maintain building value while offering competitive deals, and experience in structuring win-win lease agreements.
Mid Level Questions
Q: What factors impact the difference between Face Rent and effective rent?
Expected Answer: Should mention tenant improvements, rent abatement, lease term length, market conditions, and how these factors influence the final rental rate.
Q: How do you explain Face Rent versus effective rent to potential tenants?
Expected Answer: Should demonstrate ability to clearly communicate rental terms, explain incentives and concessions, and help clients understand the total cost of occupancy.
Junior Level Questions
Q: What is Face Rent and how does it differ from effective rent?
Expected Answer: Should be able to explain that Face Rent is the stated rental rate before any concessions or incentives, while effective rent reflects the actual cost after considering all incentives.
Q: What are common tenant incentives that might affect Face Rent?
Expected Answer: Should identify basic incentives like free months of rent, tenant improvement allowances, and moving allowances that impact the difference between Face Rent and effective rent.
Experience Level Indicators
Junior (0-2 years)
- Understanding basic lease terms
- Showing properties to potential tenants
- Processing rental applications
- Basic market research
Mid (2-5 years)
- Negotiating lease terms
- Market analysis
- Understanding tenant incentives
- Property valuation basics
Senior (5+ years)
- Complex lease negotiations
- Portfolio management
- Market strategy development
- Team leadership and training
Red Flags to Watch For
- Inability to explain the difference between Face Rent and effective rent
- Lack of knowledge about local market conditions
- Poor understanding of lease terms and structures
- No experience with tenant negotiations
