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.