Summer is the busiest leasing season in Dallas, and a July concession is often not the same deal as a February one. Here is what the season changes, and one thing it never does.
What the season does
The month itself doesn't change the value. A free July and a free February each take off one month of rent. Rent is a monthly price, so a month free is a month of rent in any season. Only offers in weeks or days get priced by the day.
Competition is higher. More renters are looking in summer than at any other time of year. A building filling up in summer has less need to discount than it would in January. The biggest offers of the year often come outside peak season.
Convert first, compare second
The method does not change with the season.
Daily rate = (monthly rent × 12) ÷ 365
Multiply that by the days in the lease, subtract the free days at the same rate, and divide by the number of months. That is your effective monthly rent.
A $1,500 unit on a 12-month lease with six weeks free:
- Daily rate $49.32
- Gross lease cost $18,000
- 42 free days = $2,071
- Effective monthly $1,327
The sign said $1,500. Six weeks free is 42 days, not a month and a half.
Where the bigger offers are this summer
Supply, not season, decides how big the concessions get. Lots of new construction means lots of buildings still filling up. Those buildings need to fill units, and they have marketing money to spend.
In this market that means the Design District inside the city, with its upscale apartments and new high rise construction. Up north, it means the Frisco and Allen-McKinney corridor. Uptown buildings still filling up offer big concessions too. In our latest weekly pull, a typical Uptown one bedroom is $1,935 a month net effective, against $1,245 across the Dallas area. Some new buildings still have empty units.
Specials for signing on the day you tour, waived admin fees, and discounts for leasing before a building opens show up in these buildings for the same reason.
Three checks before you take a summer offer
1. The community fees. A concession does not touch amenity, parking, package, valet trash, pest, pet rent, split utility bills (RUBS), or bulk internet. Two buildings quoting the same rent can be $200 a month apart on the community fees alone. That is more than most concessions are worth per month.
2. The clawback. Break early and you usually owe the free rent back. The terms usually sit in a lease addendum, not the main lease. A lot of summer leases go to people who have just moved for work, which is exactly the group most likely to move again.
3. The renewal, and when it lands. Concessions apply to year one. A 12-month lease signed in July renews in July, right back in peak season, with the rent reset. A 15-month lease moves the renewal into a slower month, and that is sometimes worth more than the difference in concessions.
| Sign in July, 12-month | Sign in July, 15-month | |
|---|---|---|
| Renewal lands | July, peak season | October, a slower month |
| Concession applies | Year one only | Year one only |
| Price at renewal | Peak season prices | Prices outside peak season |
What to ask this month
- Is the concession a set number of weeks or days, or a full month of rent?
- If I break early, do I owe the free rent back, all of it or a prorated share?
- What did this unit renew at last year, and does the concession repeat?
- Can I see the full fee schedule, including whether internet is bulk?
- Is the unit ready today, or is the current resident still moving out?
In peak season, a unit can lease between the day we send your list and the day you call. If one has leased, let us know and we'll send others ASAP.
Do the daily rate math on any offer, and ask us if something looks off. Read a Dallas concession the right way