Adjusting Rents for Tenants Paying their Own Utilities & Concessions

[Bryan Hancock]

I have seen it argued that rents have to be adjusted to account for the tenants paying for their own utilities. This has seemed like bunk to me and I am wondering what other's experience has been with this.

The theory is that if the tenant pays for utilities they won't pay as much in rent. If the landlord pays for utiliites the market rent will be higher.

The same can be said for concessions. If the owner offers concessions then the market rent will be higher. If the owner doesn't offer them and simply drops the rent to produce a 5% vacancy then the prevailing market rent will be obtained if the property is marketed correctly.

Ideas?