In a tough rental market, rent concessions—those specials offered by landlords to attract potential renters—can be the difference between a vacancy and a signed lease. In other words, between you paying the monthly mortgage payment and your renter paying it. Now a new survey by Apartments.com has discovered which concessions renters want, so you’ll know the best concessions to offer to fill those vacancies quickly.
Key Takeaways
- “First Month Free” is the best: 36% of renters say this offer, more than any other rent concession, would make them more likely to sign a lease.
- Concessions equal renters: 67% of renters say a rent concession would moderately or significantly sway their choice between similarly priced apartments.
- Discounts over apartment details: 88% of renters say they’d consider overlooking minor flaws in an apartment for a good rent concession.
- All concessions are good concessions: That said, nearly one-third of renters value a rent concession that provides ongoing value throughout the term of their lease.
- Concessions equal inquiries: 95% of renters say a concession mentioned in a listing would make them more likely, or potentially more likely, to inquire about the property.
Some Concessions Are Better Than Others
With so many costs of moving (just a small truck can set you back $100 to $300), move-in specials show renters that you care about them and their budget. Whether it is first month free, a waived security deposit, or free parking, move-in specials are a great way to start the relationship with your renters.
Of course, certain specials are just much more appealing. The best one? Thirty-six percent of respondents chose “free first month’s rent” as the concession that would get them to sign a lease. And renters are six times more likely to sign a lease when offered the first month’s rent free, compared to a smaller concession like a waived application fee. Wouldn’t you trade one month’s rent for the chance at a long-term tenant?
Providing an Edge Over the Competition
Rental concessions help attract renters in tough markets. Sixty-seven percent of renters said they would be significantly to moderately influenced to choose one apartment over another because of being offered a rent concession. On the other side, just 6% said they would not be influenced by being offered a concession.
Discounts Outweigh Details
Apartment upgrades can be expensive, but concessions level the playing field. Eighty-eight percent of renters are definitely or possibly ready to overlook minor issues with an apartment if they’re offered a significant concession. Would you rather put in new granite countertops or waive a pet fee?
Also, rent specials also matter to different generations. For Millennials:
- 33% would overlook minor issues if they were offered a rent concession
- 60% would overlook issues depending on the severity and the value of the concession
- 7% said that the apartment was more important than the concession
Immediate Savings vs. Continued Value
If renters are getting a concession, the kind does not matter as much. Renters appreciate both immediate savings and ongoing value rent concessions: 52% said that both are equally as important.
If you need to change an offered rent concession, protect yourself by making sure you include those details in the lease: the date the concession ends, any fee if rent is not paid, etc. Transparency makes a good landlord.
Concessions Push Inquiries
Highlighting your rent concession helps you stand out and get more leads. 51% of renters are more likely to inquire about an apartment if they see a concession in the listing.
Concessions boost inquiries because they:
- Show value: Renters see they are getting a deal, which can be a deciding factor when comparing multiple listings (even if the actual rent is not that different).
- Create a sense of urgency: When framed as a limited-time offer, concessions can create a sense of urgency, thus prompting renters to inquire as soon as possible.
- Make your rental stand out in a crowded market: Many renters find properties through a rental search app or website. Attractive rent concessions stop their scrolling, catching their eye and drawing them in for a closer look. Many apps and websites allow renters to filter listings for move-in specials and other concessions.
- Ease commitment fears: Rent specials make renters feel more financially secure, reducing trepidation they might have about signing a lease. It’s less of a financial commitment to move into an apartment when the first month’s rent is waived.
Click here for more in Apartments.com’s examination of renter concessions.
