It is Sunday night in Phoenix. Your new listing got two tire kickers, zero qualified applications, and the mortgage auto drafted Friday.
Every vacant day costs real money, and the temptation is loud: offer one month free. Sometimes that move works; often it invites churn, damages your NOI, or creates fair housing risk. You do not need bigger giveaways. You need a sharper strategy.
In the next few minutes, you will learn which concessions attract reliable tenants, which backfire, and how to document them correctly so you lease faster, protect deposits, and keep renewals strong.
Key Takeaways
- Phoenix’s recent apartment-building surge expanded renter choice and made concessions common, even in single-family rentals that leased quickly.
- Concessions work best when they lower move-in friction without locking in lower base rent long term.
- Keep deposits firm. Arizona caps residential security deposits at 1.5 months of rent and requires nonrefundable fees to be designated in writing.
- Publish clear terms and apply them consistently to similarly qualified applicants to reduce fair housing risk under federal and Arizona law.
- Favor value-add perks and time-bound look and lease incentives, and use a concession addendum that lets you recapture credits if the lease ends early.
Why Concessions Are Back in Phoenix
Over the past few years, Phoenix has added apartments faster than it has added people, mainly due to a surge in multifamily construction. Supply is now easing, but that wave still matters: renters have more options, and many buildings use specials to fill units.
As a landlord, you are not trying to match a Class A tower’s gym or pool. You are competing on fit, speed, and clarity. Price it right, keep the offer simple, and help qualified renters say yes quickly.
What Works: Strategic Concessions That Attract Quality Tenants
Pro-rated One Month Free
Instead of waiving a whole month upfront, spread the credit across the term as a monthly concession. Advertise the effective rent while the lease states the gross rent.
To protect yourself if the tenant ends early, attach a concession addendum that lists the total value, the monthly credit, eligibility, and repayment triggers.
Reduce Move-in Friction, Not Protection
Waive modest, non-essential costs that create decision drag, such as an application fee or a small admin fee, or offer a limited look and lease discount for applications within 24 hours of touring. These incentives reward decisiveness without lowering the base rent.
Value-Add Perks that Encourage Renewals
Including internet, recurring landscaping, or a smart thermostat and video doorbell increases perceived value without cutting face rent. These sticky amenities make renewal more attractive and help stabilize income.
Clear, Time-bound Terms
Every concession should be specific about amount, timing, and eligibility, time-limited to a defined marketing window, and contingent on standard screening criteria. Specificity attracts decisive prospects, reduces disputes, and makes your offer easy to advertise uniformly.
What Backfires: Concessions That Cost You More
Deep Security Deposit Cuts
Your deposit is the primary buffer against damage and abnormal wear. Arizona law limits total security, however named, to one and one-half months of rent and requires the purpose of any nonrefundable fee to be stated in writing. Cutting deposits too far may win a quick move-in, but it leaves you exposed at move-out.
Vague or Outsized Giveaways
Offers like three months free or we will pay your move often draw concession shoppers who churn at renewal. Turnover destroys returns through vacancy days, make-ready work, and leasing costs.
Keep offers modest, specific, and tied to behaviors you want, like timely applications, on-time move-ins, and longer initial terms.
Phoenix Class A lease-ups commonly deploy six to eight weeks free, which can pressure surrounding assets. Know your submarket before matching big-ticket specials.
Verbal, Case-by-Case Deals
Ad hoc discounts create record-keeping problems and increase fair housing exposure. Federal law prohibits discrimination in the terms and conditions of rental and in advertising.
Arizona’s fair housing statute mirrors those protections. The safest approach is to publish your special prospectively, apply it consistently to similarly qualified applicants, and document every concession in writing.
How to Implement Concessions Safely
- Price first. Concessions cannot fix an overpriced or poorly maintained property. Confirm market rent with fresh comparable listings and condition-adjusted comps.
- Document everything. Use a one-page concession addendum detailing the total value, monthly credits, eligibility, and early termination repayment rules.
- Keep deposits separate from fees. Keep the deposit intact, clearly label nonrefundable charges, and follow Arizona’s accounting and refund timing rules.
- Standardize and track. Update ads prospectively, apply terms consistently, and measure days to lease, delinquency, renewal, and make-ready costs by concession type so you know what works.
FAQ
Is it better to lower base rent or offer a concession?
Usually, a targeted, one-time concession preserves long-term rent integrity and renewal math. Lowering base rent resets your starting point for future increases.
Do I have to offer the same deal to everyone?
The law bars discrimination in terms of advertising. The safest practice is to publish your special and apply it consistently to similarly qualified applicants.
How low can I set the security deposit?
Arizona caps residential security deposits at one and one-half months of rent and requires the purpose of any nonrefundable fee to be stated in writing. Keep deposits firm and ease move-in with fee waivers instead.
Stop Discounting. Start Strategizing.
Concessions are tools, not magic. In Phoenix, the winners price to market, keep deposits strong, and use clear, time-bound offers that cut move-in friction without cutting long-term rent.
Document every credit in an addendum. Apply terms consistently to similarly qualified applicants. Track what works: days to lease, payment performance, renewals, and make-ready cost.
Retire offers that attract churn. Scale the ones that bring reliable tenants and longer stays. That is how you protect income while leasing faster.
Ready to turn vacancy days into signed leases? RPM Phoenix will audit your pricing, design a compliant concession plan, and handle end-to-end marketing, screening, and documentation.
Get a free rental analysis and let us help you win the tenant you want at the rent you need. Contact us today!
Additional Resources
Arizona Squatter Laws Explained: How Landlords Can Protect Their Property
Key Property Management Software Features Phoenix Landlords Should Look For
