Concession Question

[Account Closed]

I have a few units online now in my building, and then another few becoming available in the next few weeks.  In comparison to the market mine are the smallest, but the second least expensive, so slightly higher priced (b/c they are all newly renovated).  

We've had alot of interest over the past two weeks, but no leases signed so the property manager has recommended a concession strategy to see if that will generate some signed leases.  

Details

Rent $625 + Washer/dryer rental $50/mo  = effective monthly payment $675

Concession $75/mo 

So effective rent is $600/mo (more in line w/ size of apartments in the area and the market with the added benefit of the washer/dryer which many buildings don't have on site) 

Per the lease addendum - if the client doesn't pay by the 5th, they don't get the concession for that month.  

Makes sense, and does provide value, but I wanted to see what the thoughts are on this vs just lowering the rent to $600/mo, without the washer/dryer units.  

[Jason Hirko]

I like the idea of the concession going away if they're late, but it doesn't market as well as a $599/month lease. Whenever I have a place sit for a week I do half off first month's rent and it's never failed. In your situation after about 5 months, you'd be better off than dropping it $75.