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Two months of free rent, hundreds of dollars off move-in costs and other concessions are becoming more common for prospective renters in Salt Lake City.
Utah’s capital city has the highest portion of rental listings with at least one concession among the country’s 50 largest rental markets, according to data from the real estate website Zillow.
Salt Lake City also had the most growth in concessions between October 2022 and October 2023, from about 30% of listings to more than half.
New construction and higher vacancy rates are behind the boon to tenants, said Emily McDonald, a rental trends expert with Zillow.
Property managers turn to concessions before lowering rents, she said, to entice renters when they are trying to decrease their vacancy rates.
McDonald cautioned that concessions are only guaranteed for the first lease period.
“If you decide to stay in the apartment for another lease term, you might not get that same deal,” she said.
Current tenants can always ask to negotiate, though, she added, and can think outside the box by asking for such things as new appliances.
Rent concessions nearly doubled in Salt Lake City
Concessions are up nationwide and in nearly all of the 50 largest rental markets.
Across the country, 30% of listings on Zillow had at least one concession in October. That’s up six percentage points from October 2022.
Rent concessions boomed even more in Salt Lake City, nearly doubling in a year from 28% of listings in October 2022 to 54% of listings a couple of months ago.
The local market is one of three where at least half of the listings on Zillow offered one concession or more — San Jose had 51% and Washington, D.C., had 50%.
Similar western markets also have higher levels of concessions than a year ago, but not as high or as much of an increase as Salt Lake City:
43% of listings in Denver have at least one concession, up from 38% in October 2022.
40% of listings in Las Vegas have at least one concession, up from 27% in October 2022.
45% of listings in Phoenix have at least one concession, up from 35% in October 2022.
42% of listings in Portland, Ore., have at least one concession, up from 35% in October 2022.
Higher vacancy rates lead to more concessions
Concessions are often rising most in markets where multifamily construction is booming, McDonald said, as new construction leads to higher vacancy rates.
Data from June show the city’s market at a historically low occupancy rate of 94% or a vacancy rate of 6%. That’s more recently up to 7%, McDonald said.
Higher vacancy rates then lead to slower rent growth and more concessions, she said.
“If you’re a property manager, the first thing you’re going to try is offering those perks or incentives, instead of lowering the asking rent,” McDonald said.
Zillow doesn’t have exact data on the types of concessions. McDonald said she has heard anecdotally that the most common concession in Salt Lake City and beyond is free weeks or months of rent, followed by property managers waiving fees for parking and other amenities.
There also are concessions on upfront fees, she said, including lower security deposits or waived application fees to make it less expensive for people to move in.
Don’t count on concessions beyond the first lease term
Tenants should be smart with special deals and offers from buildings, because there is no guarantee they will last, McDonald said.
If someone effectively gets hundreds off their rent during the first lease because of free weeks or months, they should remember they will be responsible for that extra amount in the next year, she said.
McDonald also recommended people know what’s going on in the local rental market and weigh tradeoffs. Living 10 minutes further from work could save $100 a month or more, she said.
While concessions target potential renters, current tenants may have a chance to get a deal as well, McDonald said.
“My best advice is always ask,” she said. “You can negotiate no matter where you are in your lease.”
Tenants can be creative and ask for things, such as new appliances or up-to-date flooring, that would make their experience better even if it doesn’t save them money, she said.
Megan Banta is The Salt Lake Tribune’s data enterprise reporter, a philanthropically supported position. The Tribune retains control over all editorial decisions.
