A rent concession is an incentive a landlord gives to sign or renew a lease — commonly a free month, a reduced rate for part of the term, or a waived fee. Concessions let you fill a vacancy without permanently lowering the face rent written on the lease.
Because a concession lowers what the tenant effectively pays, the true income is the “effective rent”: the total collected over the term, spread across the months. A unit listed at $2,000 with one free month on a 12-month lease brings in about $1,833 effective. Track concessions on the ledger so your books reflect what you actually collect, not just the headline rent.
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Editorial method reviewed July 28, 2026. Aptoria reviews scope, source fit, examples, limitations, links, and publication gates. This record does not claim attorney, CPA, lender, appraiser, or other independent professional sign-off.
Related terms
Rent
Gross rent
A top-line rent amount before operating expenses, which must be labeled as potential, scheduled, billed, or collected to be meaningful.
Rent
Market rent
The rent a unit would command today if offered to a new tenant in the current local market.
Rent
Rent ledger
A running, dated record of every charge and payment on a single tenancy, showing the current balance owed.
Investing metrics
Vacancy rate
The share of rental units — or potential rent — that sits empty and uncollected over a period.
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