Move in Specials v lowered Rent

Lone Tree, Colorado
General Landlording & Rental Properties
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Move in Specials v lowered Rent

Makan A Tabrizi
Member since 2023 · 50 posts · 26 votes

I've lowered rent twice to incentivise applicants to move in, with negative results. I understand the market in Denver area is a little saturated so I'm examining other options. I'm a small landlord with 6 units. What are your thoughts on move-in specials? It seems like a no-brainer to give a month free, or something similar, as it would eventually expire. However, do I really want folks that need a month free to apply? Would that attract tenants that might be at risk of paying the rent in the long term? Perhaps I'm looking at this the wrong way? Any comments/advice would be appreciated. Thanks.

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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
2mo
Quote from @Makan A Tabrizi:

I've lowered rent twice to incentivise applicants to move in, with negative results. I understand the market in Denver area is a little saturated so I'm examining other options. I'm a small landlord with 6 units. What are your thoughts on move-in specials? It seems like a no-brainer to give a month free, or something similar, as it would eventually expire. However, do I really want folks that need a month free to apply? Would that attract tenants that might be at risk of paying the rent in the long term? Perhaps I'm looking at this the wrong way? Any comments/advice would be appreciated. Thanks.


A Move-In Special can be CHEAPER than lowering the rent.

Lowering the rent too much can also attract the next lower demographic of tenants:(

If you do lower the rent, make it a percentage - we use 5%.

BEST Move-In Special results:
One month of free rent, 50% credit the 2nd month, the other 50% the 4th month - but only if all payments received on-time!
- Reward good behavior! 

[email protected]248-209-6824
Logical Property Management4.9462 Reviews
WebsiteView Page
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  • Greg ScottPro Member
    Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
    2mo

    A move-in special can be a great incentive to get traffic on your vacant unit.  If done properly, it would negate many of your concerns.

    First of all, the income qualification should be on the typical monthly rent, not he average rent. This means your residents will likely have higher income than if you just lowered rent.  We NEVER allow the resident to apply the "one-month-free" to the first month.  We want residents that are financially secure enough to have enough cash to move in normally.  We typically allow them to take the free month only after 30 days of paying rent.  They could apply it to the second full month or the last month, whichever they prefer.

    2Reply
  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    2mo

    I was going to suggest you want to do it s the last month.  The upside to the free month is if you increase rent you’re increasing from a higher number they’re already used to. Makes the increase smaller. I didn’t even consider the higher income required, that’s also a good point in favor of the free month. 

    Lastly. Are you sure the price is the problem? Have your comps lowered their rent pricing you out? Just make sure it’s not marketing, photos, condition, etc. Maybe ask a local PM what they would charge and how long they think it would take to find a tenant. They might say a much lower number than you’re thinking, or even a higher one without a free month. Good luck. 

    0Reply
  • Jim Johnson
    Real Estate Agent · Memphis · Member since 2026 · 619 posts · 356 votes
    2mo

    I'd separate the incentive from the screening decision. Someone taking a free month doesn't automatically make them a higher-risk tenant—I’d still apply the exact same income, credit, rental history, and other qualification standards.

    Between the two options, I’d look at it this way:

    • Lower the rent: Makes sense if the unit is simply priced above what comparable rentals are getting, but you're locking in that lower monthly number for the lease term.
    • Move-in special: Makes more sense if the asking rent is competitive but you need something to get a qualified tenant off the fence. The concession expires while the base rent stays intact.

    Since you've already lowered the rent twice without results, I’d look at the funnel before cutting it again. If you're getting showings but no applications, a concession might help. If you're barely getting inquiries at all, I’d take another look at the price, listing, photos, condition, and competition because the special may not be the real issue.

    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    2mo
    Quote from @Makan A Tabrizi:

    I've lowered rent twice to incentivise applicants to move in, with negative results. I understand the market in Denver area is a little saturated so I'm examining other options. I'm a small landlord with 6 units. What are your thoughts on move-in specials? It seems like a no-brainer to give a month free, or something similar, as it would eventually expire. However, do I really want folks that need a month free to apply? Would that attract tenants that might be at risk of paying the rent in the long term? Perhaps I'm looking at this the wrong way? Any comments/advice would be appreciated. Thanks.


    A Move-In Special can be CHEAPER than lowering the rent.

    Lowering the rent too much can also attract the next lower demographic of tenants:(

    If you do lower the rent, make it a percentage - we use 5%.

    BEST Move-In Special results:
    One month of free rent, 50% credit the 2nd month, the other 50% the 4th month - but only if all payments received on-time!
    - Reward good behavior! 

    [email protected]248-209-6824
    Logical Property Management4.9462 Reviews
    WebsiteView Page
    5Reply
    • Makan A Tabrizi
      OP
      Member since 2023 · 50 posts · 26 votes
      2mo
      Quote from @Drew Sygit:
      Quote from @Makan A Tabrizi:

      I've lowered rent twice to incentivise applicants to move in, with negative results. I understand the market in Denver area is a little saturated so I'm examining other options. I'm a small landlord with 6 units. What are your thoughts on move-in specials? It seems like a no-brainer to give a month free, or something similar, as it would eventually expire. However, do I really want folks that need a month free to apply? Would that attract tenants that might be at risk of paying the rent in the long term? Perhaps I'm looking at this the wrong way? Any comments/advice would be appreciated. Thanks.


      A Move-In Special can be CHEAPER than lowering the rent.

      Lowering the rent too much can also attract the next lower demographic of tenants:(

      If you do lower the rent, make it a percentage - we use 5%.

      BEST Move-In Special results:
      One month of free rent, 50% credit the 2nd month, the other 50% the 4th month - but only if all payments received on-time!
      - Reward good behavior! 


       Thank you for the tip on move-in specials. I will definitely test them out.

      0Reply
  • Makan A Tabrizi
    OP
    Member since 2023 · 50 posts · 26 votes
    2mo

    Thank you everyone for the comments and suggestions. I'm going to lower the rent just a little bit more before trying and incentive. I've checked out the rents in the vicinity and I'm at or just a little bit below. I'm getting people viewing the property on apartments.com but I'm not getting people calling. Once I get people showing interest, I might try the incentive. Thanks again.

    0Reply
  • Patrick O'SullivanBusiness Member
    Property Manager · Phoenix, AZ · Member since 2024 · 557 posts · 212 votes
    2mo

    Lots of good points already, but I'll throw in my two cents.

    Honestly, the fact that you're getting views but no calls tells me this probably isn't a pricing problem anymore. You've already dropped rent twice. If people are clicking on the listing and then not picking up the phone, something in the listing itself isn't closing the deal, photos, description, how fast you're responding to inquiries. I've seen landlords lose good applicants just because they didn't call back within a few hours.

    On the move-in special side, agree with Drew and Jim, don't let people apply the free month to month one. Keep the qualifying income based on full rent and only release the credit after they've proven they'll actually pay on time. It's a small tweak but it keeps you from accidentally lowering your screening bar while still giving people a reason to sign.

    With 6 units, one bad tenant really hurts you, so I wouldn't get too hung up on finding the "best" incentive structure. Figure out what's actually stalling your leads first, then decide if a concession is even the right tool.

    [email protected]480-795-7938
    get MULTIfamily Property Management4.7215 Reviews
    WebsiteView Page
    0Reply
  • Adam BartomeoBusiness Member
    Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
    2mo

    I would think that it would depend on the market and what tenants are reacting to. In our market, we have tried these tactics many times and the response has ALWAYS been the same, tenants want lower rents, not move in specials.

    [email protected]239-339-3969
    Bartomeo Property Management4.7156 Reviews
    WebsiteView Page
    0Reply
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