Landlords Try to Bolster Rental Market With Concessions

More and more landlords are listing rentals with concessions in order to boost business during this slowed time. The rental market has softened considerably due to the pandemic, reports Zillow. Listings offering concessions grew from 16.2% in February to 30.4% in July. Such concessions include free months of rent, parking, gift cards, or waived fees, with free rent being the most popular. On average, landlords have offered six weeks of free rent, which equals an 11.5% discount. Zillow surveyed renters in April and 55% reported received at least one concession.

Landlords appear to be choosing to offer concessions rather than reduce rent to entice tenants to their buildings, as demand for rentals has waned since February. Before the pandemic, the nation was seeing concessions dwindle earlier this year, which coincided with accelerating rent growth. That trend reversed sharply after the pandemic hit in February. In a softer rental market, landlords are trying to push the right button to bring renters into their space.

A survey of renters taken in April as part of Zillow’s 2020 Consumer Housing Trends Report found that 55% reported receiving at least one concession or perk in their rental agreement. Among renters that received at least one concession, the most common were parking (35%) or at least a month of free rent (34%), followed by a reduced monthly rent price (23%).

Read More