You can navigate apartment concessions
With new apartment communities opening in Houston every month, many offer specials to incentivize new residents. Also called “concessions,” they are financial incentives, such as free rent, discounts on community amenity fees, reserved parking, and move-in specials or free prorated rent from the move-in date to the end of the current month, if you move in after the first of the month.
But how do you decide which special is best for you? Is one month of free rent worth more than a “$99 Total Movein Special?” Well, it all depends.
There are two main factors to consider — the value of the special and the length of the lease you must sign to receive the special. Some communities might only require a six-month lease, while another might ask you to make a year-long commitment.
The best way to evaluate the value of a concession is to determine the whole dollar amount of the special, then divide that number by the number of months on your lease. This will give you a “discount per month” number. Let’s put this into practice.
Community A is offering a one month rent-free special if you sign a 10-month lease. The unit is $1,200 a month, so you are going to save $1,200/10, or $120 a month. Compare it with Community B, which has a $99 total move-in special when you sign a 12-month lease. Make sure you ask what your specific special includes, but typically move-in costs include the following: An application fee (typically around $75) An administration fee (typically around $150) A (refundable under certain conditions) security deposit (typically around $300), and Your first month’s rent (in our example $1,200) Thus, the $99 dollar move-in special is really worth $1,725-99/12, or $135 a month, giving you a better discount than the one-month-free deal. Of course, you still need to ask yourself if you want to commit to additional two months to receive it.
Have questions about apartment living? Contact the Houston Apartment Association at 713-595-0030 or visit www.haaonline.org/renters.