Rent Giveaways And Vanishing Deposits Put Multifamily Cash Flows At Risk Article originally posted on Globe St. on July 22, 2026 Multifamily owners are leaning harder than ever on rent and deposit concessions to protect occupancy in a tougher refinancing climate, but that strategy is quietly magnifying bad debt risk and eroding cash flow just as a wave of maturities comes due, according to LeaseLock executives and data from federal and private sources. Competing in Oversupplied Market With roughly 13% of multifamily mortgages maturing in 2026 and more than $800 billion in multifamily debt set to come due over the next 24 months, owners are searching for ways to keep properties full while preserving cash flow in a challenging refinancing environment, LeaseLock executives tell GlobeSt.com. A growing share of operators are turning to rent and deposit concessions to compete in an oversupplied market, but that approach is leaving them with higher uncollected balances, more legal disputes and less capital for maintenance and improvements at the very moment lenders are scrutinizing operating performance. Consumer Financial Protection Bureau data show median outstanding rental balances have climbed to about $3,200, underscoring the mounting financial exposure housing providers face as concessions spread across the market. Abundant new supply and fierce competition are prompting owners to shrink or eliminate traditional security deposits, an often overlooked piece of their risk strategy. While occupancy is improving in many markets, LeaseLock data indicates that move‑out balances have climbed to an average of $2,250, leaving properties increasingly unprotected against unpaid charges while renters face collection activity, potential credit damage and barriers to future housing. “Conceding deposits as a leasing strategy has transformed into a cycle of serious financial risks and consequences for both properties and renters,” Janine Jovanovic, chief executive officer at LeaseLock, tells GlobeSt.com. Security deposit concessions have risen steadily in tandem with rent giveaways since the pandemic, driven by affordability pressures, legislative efforts to ease financial burdens on renters and local supply dynamics. LeaseLock reports that the median deposit on hand nationally is now about $500 and roughly 20% of leases carry no deposit at all. The bottom 40% of American households are grappling with slowing wage growth, elevated inflation and unaffordable housing, while the median renter holds only about $1,800 in liquid savings, according to Moody’s and Harvard’s Joint Center for Housing Studies. “Renters can’t afford a deposit, and housing providers can’t afford vacancy,” Jovanovic says. “Concessions have been the solution.” Rent Giveaways Now Touch 40% Of Properties Price discounts are now being offered on a large block of the nation’s rental stock as operators fight to fill units, Greg Willett, LeaseLock chief economist, tells GlobeSt.com. Data from CoStar and Zillow show some form of rent giveaway at about four in every 10 properties, while RealPage data indicate that roughly 25% of available inventory is listed with price cuts, reflecting the fact that not every unit or floor plan is discounted at a given property. Willett notes that concession usage is running above its historical norm but remains well below the all‑time peaks seen around the Great Financial Crisis, when discounting occurred at roughly twice today’s frequency. The pattern is highly regional. Concessions are most prevalent in Sun Belt and Mountain‑Desert metros that have added significant new supply over the past three to four years, including Austin, San Antonio and Denver, as well as markets in Florida and the Carolinas. By contrast, rent discounts are rare in metro New York and much of California—especially San Francisco and Orange County. Much of the Midwest is also in this category. “The use of concessions is beginning to pull back a little among top‑tier Class A assets, which, in some cases, just means that the size of the rent giveaway is shrinking,” Willett says. “This move reflects that new supply is coming on stream at a slowing pace. On the other hand, rent discounts are increasing notably in lower‑end Class C properties.” Renters in these more modestly priced communities are facing acute financial challenges and demand is weakening in neighborhoods where new immigrants make up a large share of the renter base, he adds. Looking ahead, Willett expects further reductions in new rental supply during 2027 and 2028, which should set the stage for concession burn‑off. But the industry should not expect a rapid return to historic norms. “The use of giveaways has gone on longer than in past cycles, so many renters feel comfortable asking for special rates,” he says. Elevated inflation in food, energy, healthcare and transportation is also driving meaningful price sensitivity among households, adding pressure on operators to keep discounting even as they seek more durable ways to protect income streams. Deposit Concessions Create A Fragile Foundation As rent and deposit discounts spread, the gap between move‑in costs and renter savings is widening, according to Jovanovic. “The housing industry is actively looking for solutions that balance renter affordability with the financial protection needed to sustain assets,” she says. In her view, heavy reliance on concessions creates a fragile economic foundation for both properties and renters, especially in an environment of rising move‑out balances and refinancing risk. Deposit alternatives are emerging as a key tool to relieve pressure on both sides of the lease, though Jovanovic cautions that not all programs are structured to support long‑term financial health. Surety bonds and other consumer credit options often require secondary credit screening that excludes many renters, and they typically subrogate against renters, exposing them to credit damage and future housing challenges. For multifamily investors weighing their refinancing options and underwriting risk in the next two years, the way operators manage concessions, deposits and alternative protection products is becoming an increasingly important part of the performance story.