What is a concession in apartment leasing?

A concession is a move-in incentive a landlord offers to attract tenants and occupy vacant units. Unlike a permanent rent reduction, concessions are temporary perks tied to signing a lease at a specific time. They typically expire after the initial lease term or after a set period, after which rent returns to the standard amount.

Common concession types in Greater Houston apartments include free rent for the first week or month, waived application fees, waived administrative or processing fees, waived pet fees, and prepaid gift cards for grocery stores or retailers. Some landlords offer a combination of these incentives to make moving into a unit more attractive during slower leasing periods.

Concessions differ from a rent discount in an important way: a discount reduces the actual lease rate and typically applies throughout the entire lease term, while a concession is a one-time or short-term benefit that ends after move-in or a promotional period. A tenant who signs under a concession will pay full rent once the incentive period concludes, whereas a discounted rent rate remains lower for the duration of the lease.

Landlords use concessions most often when market conditions favor tenants, vacancy rates are high, or a new property is competing for initial residents. They serve as a tool to cover immediate moving costs or reduce financial barriers to signing a lease without permanently lowering the unit's rental value.