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Concession
A rental concession is an allowance, such as a free-rent period or move-in credit, that reduces rental income.
A rental concession is an allowance that reduces rental income, such as a free-rent period or a move-in credit. Fannie Mae's DUS Insights glossary reports income forgone through these allowances as concessions.
Property operations example: record the allowance and the period it covers alongside the stated rent when explaining reported rental income. Keep the concession separate from an unpaid charge.
Source: Fannie Mae, DUS Insights Glossary, Concessions and Bad Debt.
Frequently Asked Questions
Is a concession the same as an unpaid rent balance?
No. A concession is a rental allowance; an unpaid balance is an amount that remains owed. They describe different reasons that rental receipts may differ from stated rent.
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