A rent concession is a reduction in rent or incentive (i.e. free parking) offered by the landlord to entice a prospective renter to sign a lease. Some people may find it helpful to think of a rent concession as a “SPECIAL” or digital coupon that one would see at Macy’s or Target.
For example, a $500 concession means you get $500 off your rent…which could be upfront or deducted a little bit each month. Find out the terms associated with your rent concession.
Instances When a Landlord May Offer Rent Concession
Landlords may offer a rent concession to tenants when:
- There are several vacant units and the landlord needs to occupy them quickly
- If there is something inherently less appealing about the apartment unit, such as overlooking noisy highway
Common Rent Concessions
Rent concessions can either be a reduction in costs or a tangible incentive. Here are some of the most common types of rent concessions, although there could be many others:
- 1 or 2 Months’ Free Rent
- $500 Concession
- $1,000 Concession
- Reduced Security Deposit
- Reduced or Eliminated Amin or Amenity Fees
- Free Parking
- Complimentary Wi-Fi.
- Free access to certain clubs and amenities.
What is the Benefit of a Rent Concession?
The biggest reason why landlords offer rent concessions is to reduce the amount of time the apartment or unit sits vacant. However, concessions of course help you as the renter as well.
How is a Rent Concession Calculated?
As a renter, you first find out what the rent concession value is (i.e. $500), and then find out the terms for applying. Sometimes landlords will let you apply the concession all at once off 1st months rent, but other times it is deducted throughout the course of the 12 month lease (year). If it is deducted throughout the course of the year, take the total $ value/12 to find out how much you can deduct off each month’s rent.
What is a one time concession?
A one time concession is a discount that you will get one time (typically up front) and then you will have to resume paying normal rent. For example, if you a $500 one-time concession and your rent is typically $2,000/month, then you can presumably pay $1,5000 on month 1, and then on month 2,3,4, etc. you will have to pay the full $2,000/month.
What is a rental concession addendum?
A rental concession addendum is often an attachment or extra page(s) to a lease that stipulates the discount or concession you were offered. It might also spell out the terms for when/if you need to pay back the concession, such as if you breach your lease.