What Is a Rent Concession?

A rent concession is a temporary incentive that landlords offer to attract or retain tenants. These benefits can range from free rent periods to waived fees, and they’re becoming increasingly common across the rental market. According to June 2025 Zillow data, rent concessions hit an all time high with 35% of listings offering perks like free rent or parking.

Rent concessions offer renters a way to offset their rental costs and help landlords fill vacant units more quickly. Understanding what rent concessions are and how they work can help you find the best rental deals.

How do rent concessions work?

Rent concessions work by enticing renters to choose one rental over another in the area through promotional offers and deals. When landlords have vacant properties, they face ongoing expenses without any rental income — meaning they lose money. Landlords and property managers offer rent concessions to help avoid long rental vacancies to maintain a steady cash flow. 

Instead of permanently reducing the rent, which may affect return on investment, a landlord might offer discounts in the form of a rent concession. Rent concessions are typically short-term incentives, such as a free month of rent or a waived security deposit. These concessions often make the property more appealing, especially in a competitive market.

Rent concessions may also be used to negotiate a lease renewal to prevent turnover. When accepting a rent concession, ensure it is included as an addendum in the new lease agreement.

Common examples of rent concessions

Landlords offer various types of concessions to appeal to different renter needs and situations. Here are the most common rent concessions you might encounter:

Free or reduced rent

One of the most popular concessions is offering free or reduced rent, typically at the beginning of the lease term. This immediately reduces your upfront costs and can save you hundreds or even thousands of dollars. Some landlords offer one or more months of free or reduced rent for a few days or weeks.

This type of concession appeals to renters because it provides immediate financial relief when moving expenses are typically highest.. 

For example, say you’re offered two free months of rent as a concession for signing a new lease. If your rent costs $2,400, you would not need to pay this cost for the first two months — saving you $4,800. Rent would then resume normally at the beginning of the third month. 

Reduced or waived security deposit

Another type of rent concession is to reduce or waive security deposits entirely, making properties more accessible. In a 2024 Zillow survey, 87% of recent renters reported paying a security deposit. For renters who did pay a security deposit, the typical amount was $750. Having this fee reduced or eliminated can make a substantial difference in your upfront costs, freeing up money for other moving expenses or helping you build an emergency fund.

Fee reduction

Concessions might also include waiving application fees, parking fees, pet fees, or administrative costs. Given that the typical recent renter submitted two applications with a median application fee of $50 per application, having these fees waived can provide immediate savings.

Moving assistance

Landlords can offer a move-in allowance as a rent concession to help cover expenses like hiring movers, packing services, transportation, temporary storage, and other relocation costs. Moving can be expensive, especially for larger households or when relocating long distances. Having a landlord contribute to these costs can significantly reduce the financial stress of finding a new rental.

Property upgrades

Upgrades to the rental property can be a significant draw for potential tenants. Landlords might upgrade appliances, add in-unit laundry, renovate kitchens or bathrooms, or make other improvements to make their properties more attractive.

These concessions appeal to renters because they provide added value and comfort without increasing monthly rent. You get to enjoy a higher-quality living space while still paying the standard rental rate.

Amenity access

If a property doesn’t already include certain amenities, landlords might offer free access to gyms, pools, community centers, or other facilities. This type of concession is particularly effective for larger rental properties or luxury communities. Access to on-site amenities can enhance your quality of life, offer convenience and savings from having to purchase a membership to a gym or other recreational activity elsewhere.

Pros and cons of rent concessions

While rent concessions offer many benefits, it’s important to understand both the advantages and potential drawbacks before choosing a rental with a rent concession.

Pros

Lower upfront costs: Concessions like reduced security deposits or free rent periods can significantly lower the initial financial burden of renting. This makes it easier to move into a desirable property even if you’re working with a tight budget.

Better affordability: Concessions can make rentals more accessible and affordable, particularly for individuals with limited budgets or those facing high moving costs. They provide breathing room in your budget during the typically expensive moving process.

Easier move-in process: Free or discounted amenities and reduced fees can make the entire move-in process more convenient and cost-effective, allowing you to focus on settling into your new home.

Access to amenities: Some rental concessions include free or discounted use of on-site amenities, such as gyms, pools, or coworking spaces. Having these perks bundled into your rental not only saves you money on separate memberships but also adds convenience and enhances your overall living experience.

Potential for upgrades: Concessions may include property improvements, such as updated appliances, fresh paint, or renovated common areas. These upgrades can enhance comfort and quality of life without increasing your rent, providing you with  more value from your lease.

Cons

Higher renewal rates: Landlords may increase rent or reduce concessions when your lease comes up for renewal, potentially negating the initial benefits. Be prepared for your rent to return to, or potentially exceed, the market rate.

Future price increases: You may experience higher rental costs in the future as landlords try to recoup losses from concessions. Factor this into your long-term housing budget planning.

Unrealistic expectations: Getting used to concessions might make it difficult to adjust if they’re reduced or eliminated later. Don’t assume concessions will continue indefinitely.

Potential for hidden costs: Some concessions, like discounted amenities, may have hidden costs or restrictions that become apparent over time. Read all terms carefully before signing your lease.

Find your next rental with confidence

Understanding rent concessions can help you make smarter decisions and potentially save money on your next rental. These temporary incentives are becoming increasingly common and can provide real financial benefits when you’re ready to move.

Whether you’re looking for your first apartment or planning a move to a new city, knowing about concessions gives you another tool for finding affordable housing that meets your needs. Remember to ask about available concessions when viewing properties and factor them into your overall cost comparison.

Ready to start your rental search? Explore Zillow’s Renter Search Center to find properties with concessions and other features that matter to you. Once you’ve entered a city to begin your search, be on the lookout for listings that say “Special Offer” to identify rentals with rent concessions.