• Managing Rental Properties

How to Use Rent Concessions as a Landlord

November 26, 2025 9 min read

Key Takeaways

• Rent concessions effectively attract potential tenants by offering incentives like discounts and reduced rent.
• Types of concessions include move-in deals, waived security deposits, and utility payments, all designed to ensure steady cash flow.
• While beneficial, these concessions can complicate bookkeeping and require strategic planning.
• Properly implemented rent concessions can lead to long-term profitability and enhanced tenant-landlord relationships.

What is a Rent Concession?

Rent concessions are monetary incentives and perks offered by landlords and property managers to make their rental properties more appealing to potential tenants. They typically include discounts, reduced rent, special deals, and other benefits that draw renters in.

For example, many student rentals will advertise a certain amount of money off their monthly rent if the lease is signed by a certain date. It entices renters to sign their leases early, allowing landlords the peace of mind that comes with their units being filled in advance.

Types of Concessions

There are a few different types of rent concessions, as landlords can structure them differently depending on a few factors. Among the most popular are move-in concessions and one-time concessions, which we’ll dive into below.

Move-in Concessions

Move-in concessions are exactly what they sound like: discounts given to new tenants for signing a lease. Oftentimes, these take the form of revised rent, waived security deposits, or prorated rent for mid-term move-ins. Renters are often looking for the best deal possible; offer the most competitive one and you’re likely to score some quality applicants. Try putting yourself in the shoes of a renter and imagine what concessions would simplify the moving process for you personally.

Lease Concessions

This type of concession can take many different shapes and sizes, as it’s a general term that refers to any changes you make to your lease. These can include rent discounts, decreased security deposits, rent-free months, fee waivers, shorter/longer lease terms, and more.

If you’d like to offer this type of concession, consider what lease terms you’d be willing to bend on—like pet clauses and added fees—then try to work out a compromise that benefits both you and your tenants. For example, a monthly concession (meaning a permanent rent concession that offers reductions for the length of the lease term) can help to attract long-term residents. As always, no matter the concession, it’s important to have its terms clearly written and agreed upon in case things go sideways.

Utility Concessions

Concessions for utilities are exactly what they sound like, but they can also look different depending on how you choose to structure them. Landlords can offer to pay for select utility bills, waive payments for a period of time, or elect to pay all utilities if it makes sense for their rental. After all, the money lost on utility payments is only a fraction of your rental income, so it may make sense to pay for utilities if that’s what will ensure filled units in the long run.

Amenities Concessions

Many landlords offer amenities like laundry services, parking spaces, private gym access, common areas, or others. Offering concessions for these amenities can attract tenants looking for those amenities at cost-effective rates. For example, you can offer free parking spaces or temporarily waive fees for other amenities if tenants agree to sign a lease by a certain date. Landlords managing shared common areas can even allow their residents to rent them out for events.

One-Time Concessions

A one-time concession, meaning a temporary reduction or deal only offered once, can be offered for a number of reasons. These types of concessions typically include any of the aforementioned concession types, but the caveat is the scarcity of the deal. A one-time concession instills a sense of urgency in renters and entices them to take action while they still have the chance. Consider emphasizing the deadline to qualify for this concession, and ensure that it’s a one-time concession only!

When to Offer Rent Concessions

Obviously, landlords don’t want to offer rent concessions without good reason. They’re typically offered when, for one reason or another, landlords need a little extra help filling their units and keeping them that way. By adding a little competitive edge to the market via landlord-offered discounts, renters will be more likely to prioritize your units.

Below are a few of the most common reasons landlords offer rent concessions.

Slow Seasons

Demand for rentals typically takes a downward turn in the winter months. Prospective renters often don’t want to deal with the burden of relocating during the chaos of the holiday season, and they certainly don’t want to do so when the weather is at its coldest. With fewer tenants looking for housing, there are more rental properties available to them. Offering holiday specials, prorated rent, and other concessions can make you stand out during these times of lower demand.

Stagnate Markets

Sometimes, the market is slow. Shifts in the economy, mass layoffs in the area, new fiscal policies, and a number of other factors can all lead to a lower demand for rentals. In those instances, renters are looking for ways to save cash at every corner, so it’s important to appeal to that need.

With so many rentals and so few prospective renters, you need to find a way to stand out financially. Make yourself the most economically sound option (for both you and your renters) within your market, and convince tenants that they’ll get the most bang for their buck with your rental.

Brand New Units

Building new rental properties from the ground up is incredibly exciting, but filling these fresh units can bring a lot of stress. To ensure you start making money from your investment property as soon as possible, consider a rent concession strategy that will attract renters and create a positive tenant-landlord relationship. Even a temporary rent concession offer can significantly increase your applicant pool, allowing you to sift through and find the best possible renters.

Unique Properties

With properties that stand out in some way, you’ll need your offer to stand out financially too. Units in prime locations are often expensive (for good reason), so considering a single rental discount to decrease short-term costs may be a good way to lock down interested applicants. Alternatively, properties in less-than-ideal locations can be a challenge to fill, so offering rent concessions in the form of paying less rent can encourage tenants to overlook imperfections while avoiding higher tenant turnovers.

​Pros of Rent Concessions

It’s very possible to increase both tenant savings and landlord savings at the same time if you play your cards just right. When considering rent concession terms, consider all the good they can bring your business as a whole.

Some pros include:

• Encouraging a steady cash flow
• Securing long-term profits
• Positive tenant-landlord relationships

The pros of rent concessions may very well outweigh the risks you take in offering them, so it’s best to consider all potential factors before rushing to a decision.

Cons of Rent Concessions

It’s also important to discuss some less positive rent concession considerations. Property managers, experienced landlords, and newbies alike should all understand exactly what they’re getting into with their rent concession strategy.

Some cons may include:

• Larger applicant pools (potentially with some less ideal renters)
• Smaller short-term profits
• More paperwork & complex bookkeeping

Always take the full picture into account. Of course, there will be risks and cons that come with every business decision you make—but whether or not it all balances out is something to keep in mind.

Getting Started with Rent Concession Agreements

If you’re seriously considering offering rent concessions to your tenants, then there are a few more tips to help you get started:

• Write clear rent concession addendums. To ensure your terms are crystal clear and to protect yourself legally, always make sure that you include all relevant information about them in your rental agreements.
• Establish consistent rules. Whether you offer one-time discounts or monthly concessions, make sure you’re keeping the terms and conditions fair and consistent across the board.
• Consider state and local laws. It’s not likely that your area will have regulations prohibiting concessions, but you should still look into things like Fair Housing Rights and local tax codes to ensure that you won’t run into any problems.
• Do market research. To compete reasonably, you’ll want to look into what kinds of concessions your competitors are offering. You want to be competitive while avoiding undervaluing your property.
• Understand your applicant pool. What kinds of concessions could they benefit from? What’s in it for them? Property managers of military housing, for instance, could consider offering a prorated rent concession for their on-the-move tenants.

Conclusion

Rent concessions may be a simple concept on the surface, but understanding exactly what they are and how they work is the key to making sure you implement them correctly. With your newfound knowledge, you can make informed decisions that enhance the appeal of your rental properties.

If you’re worried about rent concessions overcomplicating your finances, consider looking into bookkeeping software, which has the power to simplify even the most intricate details.

FAQs

One time concession meaning?

​A one-time concession is a temporary reduction or special deal offered once to create urgency and attract potential tenants.

​What is a rent concession?

Rent concessions are incentives offered by landlords and property managers to make rental properties more appealing to potential tenants. These can include discounts, reduced rent, and other perks.

When should landlords offer rent concessions?

Landlords typically offer rent concessions during slow seasons, in stagnant markets, when filling brand new units, or with unique properties.

​How can property managers effectively implement rent concessions?

To implement concessions effectively, write clear concession addendums, establish consistent rules, consider local laws, conduct market research, and understand your applicant pool.