Rent ConcessionsRent concessions: the discounts that fill units, at a price.

What rent concessions are

A rent concession is any incentive that reduces the cost of moving in or staying. Common examples include a month or more of free rent, a lower monthly rate for the first months, a reduced security deposit and waived application or move-in fees.

Managers use them to fill units faster when demand is soft or a new building is in lease-up. Renewal concessions, such as a small credit for signing again, aim at keeping residents instead.

How to measure the cost of a concession

Concession cost per lease = value of free rent + waived fees and discounts

The true cost shows up in effective rent: the average rent after the discount is spread over the lease. Concessions also lower economic occupancy even when the building looks full.

A worked rent concessions example

Illustrative figures, not from a real property

A unit rents for $1,600 a month. To lease it before the month ends, the manager offers six weeks free on a 13-month lease. Six weeks of rent is about $2,215. Over 13 months the lease brings in $20,800 minus $2,215, or $18,585, an effective rent of about $1,430.

If the unit had sat empty another month instead, the building would have lost $1,600 and still needed to lease it. That is the trade every concession decision weighs.

Rent concessions in the Reno market

According to ALN Apartment Data (September 2026), about 16% of conventional Reno properties were offering concessions. A rising share in a market often signals new supply or weaker demand; the absorption rate in real estate terms helps explain why.

Tracking concessions helps owners decide whether to hold rent or price to fill. Our article on apartment concessions covers when they pay off and when lower pricing works better.