Quote:
Originally Posted by mcgrath618
I know that there are practical reasons preventing this, but why not just... lower rent?
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It impacts the accounting of revenue and thus the valuation of the building.
It's better to say you rented at a high value but offer a lower effective rent then at a lower value. Plus, a good number of your renters will stay on so when the concession expires, you in effect get a higher actual rent then you would if you locked them in at the lower effective rent then tried to raise to the higher rent in one step which is more likely to prompt them to move out.
It is obviously more effective this way or else they'd be doing it differently.