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Rent Discounts

Sometimes we offer rent discounts to obtain a tenant quickly, or to attract a long-term tenant. Usually it works out okay. Sometimes the tenant we stretched to secure turns out to be the tenant from Hell. Hedge your bets with a lease clause that says something like the following:

“Rent is $1,000 per month. Tenant will receive a discount of $100 per month during the initial term, and not for any renewals, extensions or holding over. If tenant is ever noticed for default under this lease, even if cured in a timely manner, the discount will be null and void from that point forward. Despite that, the revocation of the rent discount will not operate as a waiver of default or affirmation of the lease if default is not timely cured.”

Be sure to remind tenants of this clause if default seems imminent. Usually the tenant will self-cure before any notice goes out. Your reminder will help save a tenant, avoid confrontation, and cast you as a hero.

See Our Class on Residential Leases