In a slow stretch, owners usually face the same question: Do we lower the rent, or offer a special like one month free? Both can get attention. But they don’t affect your income the same way.
Cutting rent can reset the number renters expect.
Why a rent cut can cost more than you think
Lowering rent feels clean and simple, but it changes your baseline. Once you drop the monthly number, that price becomes the new “normal” in the market. It can affect future renewals, future listings, and how your rental is positioned next time it goes vacant. Even when demand improves, climbing back up can be tough because residents anchor to the lower number.
Why a concession can be the smarter move
A concession lets you keep the advertised rent at the market rate while still giving renters a reason to act now. “One month free” feels like a limited-time opportunity. It creates urgency without making your rental look overpriced or “corrected.”
A common approach is pairing a concession with a longer lease term, like 13 months. That spreads the cost of the free month over more time and often makes your numbers look cleaner in the months that follow. You’re solving for leasing speed without permanently lowering your monthly rent.
When a rent reduction does make sense
Sometimes a unit sits too long. If interest stays low and competing listings are also offering specials, you may need a different tool. A rent cut can increase visibility because many renters filter by maximum monthly price, not “effective rent after concessions.” Dropping the rent can move your listing into a new search range and bring in a larger pool of renters.
Renters filter by monthly price during apartment searches.
This can work especially well if your home is objectively stronger than other options in that lower range. Renters feel like they’re getting a better home for the same budget, which increases tours and applications.
Concessions are usually the better first move because they protect your long-term rent position. Rent cuts are best when traction is stalled and you need more eyes on the listing fast. Strong operators use both tools on purpose and know when to switch.
