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| Apartment Rent, Concessions and
Occupancy Rates Author: G. Stacy Sirmans, C.F. Sirmans, and John D. Benjamin Start Page: 299 Abstract: This paper examines
the effects of rental concessions on apartment rent and occupancy rates. Using
limited-information maximum likelihood estimation, equations for rent, occupancy, and
concessions show that landlord-supplied rental concessions have a positive effect on both
rent and occupancy rates. Rental concessions seem to provide the landlord a means to
collect higher average rent and at the same time to increase occupancy rates. The results
also indicate that a negative relationship exists between rent and occupancy rates and
that certain amenities, services, and occupancy restrictions influence rent. |
