At a time when the build-to-rent sector is navigating new regulatory threats, operators are rethinking one of the industry’s most familiar levers: concessions.
During a panel on Tuesday at the IMN Build-to-Rent Spring conference in Nashville, Tennessee, executives from across the sector described a market that is no longer moving in lockstep. Instead, pricing has become hyperlocal, highly strategic and increasingly tied to how well operators can communicate value to renters.
A fragmented BTR landscape
Rent concessions are starting to pull back, but they remain widespread, according to Zillow data.
In January, 38.8 percent of rental listings on Zillow — including both multifamily and single-family rentals — offered concessions. That’s down 0.6 percentage points month over month and 2.3 points year over year, signaling a gradual national decline. That pullback is showing up in most markets, with concessions falling in 35 major metros, led by San Jose, California; Richmond, Virginia; and Louisville, Kentucky.
But the trend isn’t universal. Concessions increased in 15 metros, including Birmingham, Alabama; Detroit and Houston, and remain higher than a year ago in 19 of the 50 largest markets, with the biggest annual gains in Birmingham, Las Vegas and Columbus, Ohio.
Zillow also reports that rents for single-family homes continued to edge higher in January, with the typical asking rent reaching $2,186, up 0.2 percent month over month. While recent growth has been modest, prices remain significantly elevated compared to pre-pandemic levels.
Since early 2020, single-family rents have surged 43.8 percent, reflecting years of strong demand and limited supply. On an annual basis, rents are still rising, up 2.7 percent year over year, signaling steady growth as the market begins to normalize.
Melanie French, CEO of RR Living, said her firm is underwriting rents with a more conservative lens, revisiting pricing on a near-weekly basis. At the same time, she’s seeing a notable shift: Concessions are beginning to slow, but not everywhere.
Danielle Koontz, senior managing director at RangeWater Real Estate, whose firm primarily manages third-party assets, said concessions remain prevalent in many markets, especially as operators rethink their renewal strategies. Bryan Jenkins, President of Genstone Property Management, said his team is actively working to reduce its reliance on discounts.
The result is a patchwork of approaches that can be confusing not only for operators but also for renters. “In one market, you might see owners doing completely different things,” French said. “For so long, we saw heavy concessions, then that died down — and now it feels like we’re coming back around again.”
‘Not always a race to the bottom on price’
Even where concessions remain, their role is changing. French said she’s moving away from traditional rent discounts altogether, opting instead for more creative incentives that preserve revenue. “I’m really tired of losing income,” she said. “I’d rather give someone a gift card to IKEA. When people start nesting and decorating their home, they’re more likely to stay.”
Other panelists echoed that sentiment, pointing to a shift toward experiential or service-based perks. Instead of rent concessions, operators are offering house-cleaning services, lifestyle perks and conveniences, retail or furnishing incentives, and technology bundles.
Koontz said today’s renters are more informed — and more selective — than ever. “Residents are really smart. They know they have power,” she said. “It’s not always a race to the bottom on price.” Success often comes down to reframing the conversation. “When we can show them what else they’re getting for those dollars, that’s where we’re seeing traction,” she added.
As pricing strategies grow more complex, the role of the leasing team is expanding. With different operators offering different concessions — sometimes within the same submarket — renters are encountering a wide range of pricing structures.
That puts pressure on leasing agents to clearly explain not just what a renter is paying, but why. “There’s so much information out there about concessions,” Koontz said. “Leasing teams need to be equipped to explain the value behind them.”
In many cases, the difference between a signed lease and a lost prospect comes down to how effectively that value is communicated.
Amenities that actually move the needle
Beyond pricing, panelists emphasized that what residents value in build-to-rent communities often differs from traditional multifamily expectations. Parking, for example, has emerged as a surprisingly powerful differentiator, particularly in car-dependent markets like Dallas, where convenience and accessibility can directly shape leasing decisions.
“A well-parked community is very underrated,” Koontz said, pointing to demand for garages that can accommodate larger vehicles, as well as driveways and guest parking.
In the Southeast, Theresa Steen, SVP of operations at Quinn Residences, noted that two-car garages are especially desirable, as are pet-friendly features. “People really love their pets, and they’re willing to spend on them,” she said.
Other high-impact amenities include privacy fencing, dog parks and outdoor space, walking paths, and open-air features. “There was a time when smart home tech wasn’t expected,” Koontz said. “Now it’s almost standard — from smart thermostats to garage access and Ring doorbells.”
At the same time, operators are rethinking traditional amenities like fitness centers and clubhouses. French said her company has leaned into wellness programming — including hiring a director of wellness — while exploring lower-cost alternatives like virtual fitness classes and partnerships with national gym brands like Planet Fitness.
“You don’t necessarily need a full fitness center anymore,” she said.
The rise of bundled living — and fee transparency
As inflation pressures persist, operators are also taking a more strategic approach to fees. Many are leaning into bundled services and being explicit about what residents are paying for. This is especially important as federal regulators move to crack down on hidden rental fees, with the FTC launching a rulemaking process that could require clearer, upfront disclosure of total housing costs.
The FTC effort targets common charges such as internet, trash and smart-home fees that may be excluded from advertised rent. For build-to-rent operators, who frequently rely on bundled services and fee-based revenue, the changes could reshape how pricing is structured and presented.
At Quinn Residences, Steen said residents receive itemized breakdowns for services such as landscaping, pest control, and internet (often at below-market rates). RangeWater has taken a similar approach with its “effortless living” bundle, which consolidates services into a single monthly payment.
“Residents would rather write one check than several to different providers,” Koontz said. These bundles often include internet and smart-home features, trash removal and maintenance services.
The key, panelists agreed, is transparency. “It’s really about how you communicate the fees,” French said. “If you’re upfront and not trying to hide anything, it won’t be a negative.”
