What kind of concessions do landlords give to tenants?
What kind of concessions do landlords give to tenants?
Key Takeaways. Rental concessions are an enticement by landlords built into a lease to attract tenants. Common concessions include reduced rent for the first year, one month’s free rent, or the free use of property amenities for a period of time.
Can a landlord terminate a lease with a concessionary rent?
A letter was issued contemporaneously with the lease. It contained a concessionary rent that the landlord could terminate on the tenant’s breach of covenant. On termination, the rent payable became, retrospectively, the higher rent stated in the lease.
What are the pros and cons of rent concessions?
Cons of Rental Concessions When to End Concession: Most reasonable people do not expect to get a free month’s rent every time they sign a lease. Raising the Rent: If you have offered a reduced monthly rent to a tenant, you will have to serve the tenant with a notice of rent increase when their lease expires.
Can a rent concession letter be sent by email?
Traditionally, a physical letter would be issued and a copy counter-signed by the tenant (and guarantor). Over the last few years, case law has established that emails can result in binding contractual obligations, and the rent concession letter can safely by accepted by email.
When does a landlord offer a rental concession?
What is a Rental Concession? If a landlord needs a tenant, they may be willing to compromise. A rental concession is an adjustment a landlord makes to lease terms. The adjustments are beneficial to tenants and may take various forms, depending on what a landlord is willing to offer. Why would a landlord offer rental concessions?
Cons of Rental Concessions When to End Concession: Most reasonable people do not expect to get a free month’s rent every time they sign a lease. Raising the Rent: If you have offered a reduced monthly rent to a tenant, you will have to serve the tenant with a notice of rent increase when their lease expires.
Do you have to pay back a concession if you move out?
One way to hedge against this is to put a clause in the lease that states if the tenant moves out before the lease term, the tenant has to pay back the full amount of the concession. If their security deposit was reduced by $500, they would have to pay the landlord back this $500.
Why do landlords offer to waive first month rent?
One of the main reasons landlords use rent concessions is to fill vacancies. For example, waiving first month’s rent is a common rent concession that can quickly attract tenants. The longer a unit sits vacant, the less profit you will make as a landlord.