Concession Vs Ad Spend Calculator

When soft market, should property spend on concessions or marketing? This trade-off matters.

Concession value

Alternative ad spend

Base vacancy days

Concession days cut

Ad spend days cut

Daily rent

Concession net vs ad net

$438

Concession net

-$886

Ad spend net

-$1,324

How the math works

Concession net = days saved × daily rent − concession cost. Same for ad.

Concession: 18 × $73 − $2,200 = ($886). Ad: 12 × $73 − $2,200 = ($1,324). Concession wins by $438.

How to Use

Enter concession value.
Enter ad spend alternative.
Enter base vacancy days.
Enter concession days saved.
Enter ad days saved.
Enter daily rent.
Read winner.

Frequently Asked Questions

Concession vs ad trade-off?

Soft market: property has vacancy, need to drive lease-up. Option A: offer concession (1-2 months free, $50-150 off/month). Option B: increase ad spend to drive more leads/tours. Both cost money. Trade-off: concession captures price-sensitive renters; ad spend generates more leads but doesn't reduce price friction. Often best: combine modest ad increase + modest concession.

Concession cost?

1 month free on 12-month lease = 8.3% rent discount. 2 months free = 16.7%. On $2,200/mo rent: 1 mo = $2,200; 2 mo = $4,400. 'Concession-amortized' rent: $2,017/mo (1-mo) or $1,833/mo (2-mo). Tenant sees effective rent lower; landlord foregoes revenue. Concessions stick to market perception longer than ad spend — once property is 'concession property' in market, hard to shake off.

Ad spend alternative?

$2,200 concession could instead buy $2,200 of Google Ads (drives 50-150 extra leads) or $2,200 of social ads (100-400 extra leads). Leads → tours → applications → leases: 3-8 extra leases at 3-8% conversion. Potentially faster velocity than concession. But requires capacity in leasing office to handle increased flow. Concession often simpler tactically, ad spend higher leverage if optimized.

When to concede?

High vacancy (5+ vacant units, >6-week days on market): concession + ad. Moderate vacancy (2-4 units, 3-5 week): ad spend first, concession as last resort. Tight market (0-1 vacant): no concession or modest ($25-50/mo, no months free). Match market reality. Concession war with adjacent competitors: market-wide concession arms race usually results in year of softness before reset. Better: first mover raising rates when conditions tighten.