Explain, in no more than one page, why an apartment renter thinks in terms of monthly rents.

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Many constituencies are involved in the numerous aspects of commercial real estate. Beginning with the developer/owner and then to his team of architects, engineers, contractors, property managers, lenders and investors, and last but not least, the residents. Across this wide band of constituencies and the full spectrum of property types the terminology and terms of art used by everyone in the industry are, with some slight variations, fairly consistent.
When it comes to costs (operating and construction) the standard unit of measurement is “per square foot”. The variations would be instances such as hotels where rooms are measured as $x “per key” or apartments may be measured as $x per unit or lot (if referring to land). This is especially true when it comes to revenues and operating expenses. Almost all discussions are couched in terms of PSF (per year). However, the typical apartment renter thinks in terms of $x per month in rent, i.e., $1,000/month.
Your Tasks:
Explain, in no more than one page, why an apartment renter thinks in terms of monthly rents. And yet, as owner developers, why would we convert this monthly rent to a PSF number and use that PSF when conducting market research, market analysis, property comparisons, etc. and what biases and nuances should we keep in mind as we use these numbers?

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