With statewide rent control I want to be sure that I don't rent out my units for less than market value, but at the same time I also don't want to be in a position where my rent is so high that I end up with multi-month vacancies. Would there be any negative implications if I were to offer the incentive of, say, last month free on a two-year lease agreement? This would ultimately result in a reduced average monthly rent while still keeping the rent threshold where it should be. Thoughts?

In my experience, the majority of tenants signing multi-year leases end up breaking them early. Be sure to have a hefty penalty in place if they do.

@Nathan G. Good to know! Really appreciate the info!

http://oregoncat.org/know-your-rights/how-do-i-def...

Leasebreak is limited to 1 1/2 times a months' rent OR expenses related to rerental.    (just a fyi in terms of what fees we can charge.)

I think you can get away with that, maybe as a 'if you pay your rent on time for 23 months the last month will be free.'    I get you not wanting to give away a discount up front at the beginning of the lease, but it's helped me rent units at full market either giving them part of first month for free or prorating it as a discount across the lease term.

@Sarah Clarke I appreciate that, thank you!