How do "free months" work?

My building, owned by an established real estate player in NYC, gave 2 months on top of a 12 monthlease and it was upfront. Actually I wrote a check for security and first month, and then got the first and second month free, and then that first month check I wrote was applied to the 3rd month, then the fourth month I started writing checks regularly.

I've heard of people giving the free on the back end but that is bullshit.

And so to be clear my lease is for 14 months.

I got a free month on the back end of a 13 month lease...with Rose Associates.

I've also heard of other companies actually reducing the monthly, and charging you the net effective including the free month(s)

I know it used to be that the vast majority gave it at the back end of the lease (makes most sense; otherwise you can get someone who pays 1 month rent, 1 month security, never pays again and you don't even know they are going to be doing that till after they 'took" the free months).

But in today's rapidly changing rental landscape, I don't know what every is doing anymore, and my guess is that different landlords will do different things in order to entice renters in this current rental market.

true, yes
in this market and this time of year, landlords are willing to pay the broker fee, give you a month free, or both. sometimes this free month is amortized over the course of the lease, giving you a lower cash outflow on a monthly basis. Usually it's a month free over a 13 month lease.

expect many landlords to try to get you to sign 16-18 month leases (or offer it up to increase your pricing leverage) - that way, the lease runs out in the prime time spring / summer months

hope this helps - oh, and be careful - the rent increase will most likely be off the non-amortized or "official" rent, so make sure that you and your broker at least discuss this with your landlord.
See this: http://theapplepeeled.com/renters/knowledge-cram/

Why amortize it if you get it up front? Don't buy into the back end crap. 2 months free UP FRONT on a 12 month paid lease.

My building initially said 2 months on an 18 month paid lease. When I said no thanks, 2 weeks later they had 2 months on a 12 month.

And no, 30yrs_RE_20_in_REO any other way does not make sense.

My lease does state that my 2 months assume that I continue with the full 12 months. If I didn't, they'd have grounds to come after me.

truthfully, 2 months free upfront is not the norm - it exists but may need to be negotiated - a landlord will usually try to get those to be the last two or the first and the last (exceptions include brand new building with tons of inventory)
some people would actually prefer to amortize the free months so that they pay less on a monthly basis. 2 months free rent could easily become $500+ less in rent per month (landlords don't usually offer this up - it's the prospective tenants who negotiate it)
again i will say: be careful - next year's rent increase (depending on market conditions) will be calculated off the actual rent pre-concessions
try to get the rent itself lowered, if you can and are willing to give up some of the "free" rent

Has anyone been able to reduce the asking rent at rockrose? I know they give 1 month free but has anyone been successful at getting other concessions?

I got net effective rent, and a 2-year lease at that price from Rose.

steve - when you say net effective rent, do you mean you got the first months free and then they charged the full amount? Or did they reduce the monthly rate?

If the latter, what's the best way to negotiate that?

i believe he means that they prorated the free months across the term of the lease and he pays less each month.