Are you struggling to attract tenants to your Sacramento rental property? Maybe you’ve noticed more tenant turnover recently, or your current tenants are hesitant to renew their leases. 

If these issues sound familiar, it may be time to consider a strategy that can help you both fill vacancies and retain tenants: rent concessions. But what exactly are rent concessions, and how can they benefit you as a landlord?


In this guide from Peak Residential Inc. we’ll explain rent concessions and more!

Defining Rent Concessions

Rent concessions are temporary incentives offered to tenants to encourage new leases or renewals. They help make your property more appealing in a competitive market. While they may temporarily lower rental income, offering concessions can prevent costly vacancies, maintenance, and marketing expenses.

Types of Rent Concessions

Rent concessions can take many forms, each tailored to the specific needs of the tenant or the landlord. Here are the most common types of concessions that Sacramento rental property owners can offer:

1. Waive First Month’s Rent

One of the most popular and effective rent concessions is the first-month rent waiver. By offering to waive the first month’s rent, you make the property more attractive to potential tenants who might otherwise be hesitant due to financial reasons. 

This tactic can make your property stand out, especially if competitors are offering standard lease agreements without any added perks. 

While some landlords may feel nervous about losing one month’s rent, it’s often a small price to pay to secure reliable long term tenants. Waving the rent is a powerful incentive that can fill vacancies faster and start generating regular rental income sooner than if you waited for a tenant without this concession.

2. Waive Additional Fees

Another common rent concession involves waiving move-in fees or pet fees. For many prospective tenants, the financial burden of moving is a significant deterrent. By eliminating or reducing these additional costs, you can make the process easier and less expensive for renters.

While it’s true that fees such as move-in costs or pet deposits can add up, eliminating them reduces barriers and can attract more renters to your property.

If your rental property is in a competitive market like Sacramento, where tenants often have multiple options, offering fee waivers can make all the difference.

3. Waive or Reduce Security Deposit

Security deposits are a major barrier for many tenants. They can be especially daunting for first-time renters or those on tight budgets. Offering a security deposit waiver or reduction can make your rental property more appealing. 

Some landlords might worry about the risk involved in waiving a deposit, but it can be offset by other strategies, such as requiring renters insurance.

If you’re hesitant to waive the entire security deposit, consider offering a reduced security deposit or allowing tenants to pay it in installments. This can still ease the financial burden on renters without full exposure to the risk of damage or contract breaches.

4. Allow Customizations 

Many tenants want to feel at home in their rented space. Allowing them to make minor changes to the property, such as painting walls or installing additional shelving, can be an appealing concession. 

This type of benefit is especially attractive for long-term tenants who want to personalize their space but are often limited by rigid landlord restrictions.

Offering this type of flexibility can help you build a better relationship with tenants and increase the likelihood that they’ll stay longer. It shows that you care about making the rental feel like a true home, which can increase tenant satisfaction and reduce turnover rates.

5. Free Use of Amenities

Providing free amenities is a great way to attract tenants without significantly reducing your rental income. Consider offering perks like free parking, storage, or laundry access, especially if nearby properties charge for these services. These added benefits can make your rental more appealing.

If your Sacramento rental includes features like internet, utilities, or a pool, you might offer them as a rent concession. Tenants value convenience, and including these extras at no cost can help your property stand out in a competitive market.

6. Upgrade the Property

Offering property upgrades is a great way to retain current tenants and attract new ones. Simple improvements like updated appliances, new flooring, or smart home features can make your rental feel more modern and comfortable. 

These don’t have to be major renovations—small, cost-effective upgrades can significantly enhance tenant satisfaction. When renters see that you’re investing in the property, they’re more likely to appreciate their living space and renew their lease.

7. Cover Moving Costs

Finally, another popular rent concession is offering to cover moving costs. This could include paying for a moving truck rental or covering the cost of a moving service. 

Moving is one of the most stressful and costly parts of renting, so helping alleviate this burden can make tenants more likely to choose your property. In addition to offering to cover the physical costs of moving, you could also consider paying the broker’s fee if a tenant is working with an agent. 

This can provide a further incentive to tenants who are looking for a stress-free move-in experience.

Bottom Line

Rent concessions are a powerful tool for Sacramento rental property owners looking to attract new tenants or retain existing ones. By offering financial incentives, waived fees, or additional perks, you can make your rental property more appealing in a competitive market. 

However, it’s important to weigh the benefits against the potential risks, and to clearly communicate the terms of any concessions with your tenants. By using rent concessions strategically, you can reduce vacancies, minimize turnover, and maximize your rental property’s profitability in the long run. 

Don’t hesitate to contact Peak Residential Inc. with any questions!