Today, we operate in an oversupplied rental market, with new homes, townhomes, apartments, and more being built frequently. As more properties become available, property managers find it harder to stay competitive and stand out. At the same time, single-family homes aren't selling well because of market troubles, so owners are turning to renting their property. These factors are increasing rental supply. As a result, property managers must stand out to prospective tenants and get them in the door; otherwise, they suffer financially from long-term vacancies.
What do Concessions Mean for Renters?
Concessions often involve discounts or incentives to appeal to renters. They may consist of a waived fee, rent credits, or rent-free months. For example, some perks we currently offer at Sin City Real Estate & Management are reduced rental prices, a waived leasing fee, and a waived application fee if accepted. Additionally, because rentals are plentiful and concessions are being used, property managers are more willing to let renters negotiate to fill vacancies.
As for seasonal trends, concessions are most prominent in the Fall. This is because rentals are most sought after in the summer months, so tenants are already settled in by the time Fall comes around. As a result, fewer people are searching, and fewer are applying. With less interest in vacant properties, this encourages long-lasting concessions through the Winter. For budget-conscious renters, this makes it a great time to take advantage of seasonally offered discounts and perks. This also matters because fewer applicants and less competition make it easier to secure your desired rental without an abundance of competing applications.
Concessions in Nevada
Las Vegas ranks among the top concession users among the largest metropolitan areas in the United States. According to Realtor.com, nearly 70% of rental listings in Las Vegas use some sort of concession, showing how common these incentives are in a competitive market. Given this, Sin City Real Estate & Management is not one of the few offering concessions, but one of many.
Accidental Landlords
Within the real estate market, both selling and renting can be difficult. Homeowners trying to sell often struggle to find a buyer willing to pay their asking price and resort to renting out their property. As a result, more rentals on the market add to oversaturation. More accidental landlords put pressure on independent landlords. This can lead to an overuse of concessions, as independent landlords struggle to fill vacancies. Concessions are one of the few things that consistently motivate prospective tenants to rent a landlord's property in our current market state.
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