Key Points:
- Rental concessions are short-term incentives that encourage lease signing and renewals, according to All Property Management.
- These perks may include things like temporary reduced rent, discounts on services or amenities, and extras like free parking or internet.
- About 35% of listed properties offer some kind of rental perk, according to Zillow.
- Landlords should carefully consider the pros, cons, and timing before offering rental concessions.
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Like throwing in a free set of steak knives when selling a car, rental concessions can sweeten the deal for potential tenants. A free month of rent or waiving move-in fees may be the key motivator for rental residents to sign a lease or rental agreement––and it could be a good thing.
According to Allegiant Management Group, a month of rental vacancy can easily add up to $3,800. So, it makes sense that landlords may want to entice potential tenants with sought-after extras.
However, it’s also important to confirm that whatever you offer still makes good business sense. On top of that, you can’t just wave a free parking pass in front of a crowd and accept anyone who steps forward.
Even if you’re facing vacancy, it’s essential to still vet all potential tenants with a rental background check company like SmartMove®.
This article covers the ins and outs of rental concessions, including the benefits and potential pitfalls, common rent perks, and how these bonuses may help landlords.
What are Rental Concessions?
According to All Property Management, rental concessions are temporary incentives landlords use to encourage people to sign an initial lease or renew their agreement.
Rather than a permanent price reduction that eats away at the monthly base rent price, the article explains that rental concessions provide short-term value. These lease-signing incentives might include things like:
- Move-in perks and specials
- Discounts on application fees
- Bonus services or features
The exact perks offered may depend on the landlord, local market, and the specific situation.
Pro Tip:
Renting property is a business like any other. If you want to promote profitability, it’s important to know how to set a fair rental price that attracts the residents you want.
Examples of Common Rental Concessions
According to ApartmentIQ, there are many different kinds of rental concessions landlords might use to entice potential tenants to sign an initial lease or renewal.
Temporary Reduction or Waiving Rent Cost
Sometimes as a lease signing incentive, a landlord might provide the first or last month of rent for free or offer a discount for a certain number of months, according to the ApartmentIQ article.
That said, it’s considered a best practice to review your tenant’s financial records to help verify they can afford your rental rate. A tenant credit check and Income Insights may help you learn more.
Examples of Common Rental Concessions
Temporary Reduction or Waiving Rent Cost
Waiving Security and Other Deposits
Bonus Amenities or Discounts
Other Signing or Renewal Bonuses
Source: ApartmentIQ | Graphic: TransUnion
You can also learn more about how someone has behaved in the past. Get a criminal background report, run a previous landlord reference check, and look for previous evictions before handing over the keys.
Bonus Amenities or Discounts
Another way to incentivize new leases or renewals is to offer discounted or free access to services or amenities, such as:
- On-site gym
- Laundry facilities
- Parking
- Including utilities, cable, or internet
Other Signing or Renewal Bonuses
In addition to the options above, the ApartmentIQ article states that you can offer all kinds of bonuses, gifts, or extras when someone signs or renews a lease. These perks could include things like:
- Cash or a gift card
- Appliances or electronics
- A free month of rent
For residents who renew, you may also want to offer a service, such as professional carpet cleaning, an accent wall, or other upgrade.
Pro Tip:
If you do offer move-in benefits or other rental concessions, make sure to retain your receipts and other paperwork. Keep these with your other important landlord documents.
Benefits of Offering Perks for Signing Rental Contracts
Data from Zillow shows that rental concessions are at an all-time high in 2025, with 35% of properties offering some kind of incentive. With over one-third of management companies dishing out these rental perks, there must be at least some pros.
According to Sands Investment Group, there are several reasons landlords offer rental concessions, these include:
- Reduce the time to find new tenants. Dangling tempting carrots in front of potential residents may help attract tenants––and fill vacancies–– faster.
- Stand out from competitors. Especially if you’re in an area with a lot of new buildings and housing options, good perks may help you compete.
- Attract tenants during the slow season. If you have slow months, offering additional concessions may help move the needle on new rentals.
- Renew leases with tested tenants. If you already have reliable residents, providing a nice bonus could inspire them to stay longer and renew the lease.
However, even if you are in a hurry to fill vacancies, it’s important to not move too fast. Make sure to run tenant screening to help weed out potentially ill-fitting applicants. After all, it may be better to have an empty unit for an extra week than a resident you’ll have to eventually remove through eviction.
Pro Tip:
Exclusive to SmartMove and included in every screening package, ResidentScore® is a proprietary tool designed to assess the level of potential eviction risk a tenant may bring.
Rental Concession Watchouts
There are many benefits to providing perks that encourage rental applicants to sign a lease. However, there are some potential downsides, too.
First, it can be easy to accidentally give away too much. The ApartmentIQ article highlights the need to very carefully consider the short and long-term costs of concessions vs. the potential return on rent.
- Example: If you offer your residents $300 off of rent for the first three months, that’s $900 per unit you’ll miss out on. It’s important to calculate if paying $900/unit is worth the benefits you’ll receive.
The Human Element
What’s more, you must consider the human element of rental concessions and how different offers might impact your current and future residents. The article specifically points out:
- Resentment. Concessions can create resentment from current tenants if new residents are being offered better terms or perks than they received.
- Unrealistic expectations. These incentives can also create expectations from future tenants that you’ll offer the same perks again. If you don’t, they may demand similar deals or look elsewhere to live.
With these in mind, make sure to carefully consider the upfront, long-term, and potential hidden costs––such as any tax obligations–– of rental concessions before offering these perks.
Pro Tip:
You may be able to claim some of the money you spend on your property business through these tax deductions for landlords.
Tips for Offering Rental Perks
If you do decide to offer new or renewing tenants rent concessions, here are several things to keep in mind, according to All Property Management:
1. Be Mindful of Timing
The article recommends not having a blanket policy or offering incentives all the time. Rather, try only offering concessions if the market is slowing down in your area, or you’re experiencing a high vacancy rate.
2. Track the Market
Next, the All Property Management article recommends you keep a close eye on what’s happening with your competitors. If the market is hot and no one else is offering bonuses, then there may not be a reason for you to do it either.
3. Adjust the Perk Depending on the Circumstance
You also want to find the right perk for the right situation. The article explains that, for example, a free month of rent may be better for new tenants. However, just an upgrade or service might be more appropriate for someone renewing a lease.
4. Set Limits and Document Everything
Finally, the All Property Management article explains that you should clearly spell out your rental concession in the lease, just like any other term. Make sure to include the value of the concession and how long it will last.
Help Fill Units Faster with SmartMove Tenant Screening
If you’re facing a vacancy, offering rental concessions may help you attract potential residents. However, even if you’re desperate to get someone in an empty unit, it’s essential not to cut corners on background checks. Thankfully, you can save time and effort with fast, flexible, online tenant screening through SmartMove.
Is your tenant jumping at a month of free rent because they otherwise wouldn’t be able to afford it? Help review their financial history with a credit report. Then, Income Insights can help verify they actually make what they claim on the rental application.
How has your tenant behaved in previous rentals? Get a previous eviction report and criminal background check to help you learn more. Meanwhile, included in every screening package, ResidentScore is designed to help assess potential eviction risk a tenant may bring.
You can even get an identity check to help confirm the rental applicant is really who they say they are.
Created specifically for independent landlords who only need to screen tenants occasionally, you can get fast reports with no start-up costs, subscriptions, minimums or hidden fees. Simply sign up and start screening immediately.
Don’t let rental concessions accidentally lure destructive tenants into your unit. Help protect your property business with SmartMove tenant screening.
Rental Concessions FAQs
You should only offer rental concessions when they’re necessary, according to ApartmentIQ. This could be because you’re having trouble finding tenants in a slow season, the general vacancy rate is high in your area, you have a less-desirable unit, or all of your competitors are offering them.
By their nature, most rent concessions are short-term. According to All Property Management, most concessions should only last a month or two. If they stay in place longer than that, you may lose too much money to make them worth it.
Yes. And, according to Sands Investment Group, offering an incentive to current residents for renewing can help you retain high-quality tenants and reduce turnover.
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