What is Free Rent?——How It Works and the Landlord's Perspective
"Free rent" is a benefit where rent becomes free for a certain period (usually 1–3 months) after moving in. During this period, rent payments are waived, which amounts to a simple savings of 1–3 months' worth of rent. Even though initial costs such as security deposits, key money, and agency fees are incurred, the presence of free rent significantly reduces the actual financial burden.
Why Do Landlords and Property Management Companies Offer Free Rent?
Free rent is a system that also benefits landlords. The reason is to "control losses during vacant periods."
For example, if a property with ¥100,000 monthly rent remains vacant for one month, the landlord loses ¥100,000. On the other hand, if a landlord provides one month of free rent and gets a tenant to move in immediately, they can prevent vacancy losses in the long term. Especially for newly built properties or immediately after completion when tenants have not yet filled the building, the priority is to approach full occupancy by offering free rent.