The Hidden Costs of Discounting in Senior Living

When occupancy rates drop, many senior living operators turn to a familiar quick fix: discounts. Rental discounts or free rent might seem like an easy way to attract new residents and fill vacancies in a flash. After all, who doesn’t love a good deal?

But here’s the catch—this seemingly simple strategy can create a ripple effect that threatens the value, culture, and financial health of your community in the long run. What looks like a short-term win could lead to long-term challenges.

We’re breaking down the hidden dangers of discounting, sharing hard-hitting industry data, and introducing smarter, value-driven strategies to boost occupancy without undercutting your community’s worth.

Why Discounts Could Do More Harm Than Good 

Sure, discounts might pull in deal hunters, but relying on them in today’s competitive senior living market can lead to far bigger challenges than an empty unit ever could. Let’s dive into the risks and uncover better ways to thrive!

Attracting Residents Who May Struggle to Afford Your Community 

Discounts may seem like a quick win, but they often attract individuals who aren’t financially prepared for life in your senior living community. What happens after the discount period ends? Many residents find themselves unable to pay the full price, which can lead to stress, frustration, and even early departures. For your team, this creates extra challenges, turning what could have been a long-term relationship into a revolving door of attrition.

Disrupting the Community Experience 

Senior living is about more than just housing—it’s about creating a vibrant, harmonious community and lifestyle. However, steep discounts can sometimes bring in residents who don’t align with your community’s values and culture. This mismatch can lead to dissatisfaction for both new and existing residents, affecting the unique dynamic that makes your community special. A thriving senior living community is fueled by connection, not just occupancy.

Undermining Your Brand’s Value 

Frequent discounting can unintentionally damage your community’s reputation. When discounts become the norm, your community may start to feel “cheap” rather than aspirational. This perception can hinder long-term growth, making it more challenging to justify premium services such as high-quality staffing, distinctive amenities, and top-tier healthcare.

The Bigger Picture: Balancing Move-Ins and Revenue 

Discounting was less common in early 2025, but it was a hot strategy in 2023, and it’s on the rise again. According to Senior Housing News, discounts during 2023 looked like this:

• Independent Living: Average discounts rose to 16% (about two months of free rent), up from 1.4 months earlier in the year.
• Assisted Living: Discounts averaged 9.4%, or roughly 1.3 months of rent concessions.
• Memory Care: Operators offered an average of 10.3%, equating to 1.2 months of free rent.

While discounts may temporarily boost move-ins, NIC Principal Omar Zahraoui emphasizes the tension they create between filling units and maintaining sustainable revenue, especially as operational costs continue to climb.

Short-term gains can’t outweigh the importance of a stable, thriving community. It’s time to think beyond discounts and focus on building long-lasting relationships that enhance both your occupancy and your brand.

Exciting Alternatives to Discounting 

Why rely on discounts when you can offer value-packed solutions that elevate your senior living community’s appeal and financial health? Here are three proven and creative ways to stand out while keeping your bottom line strong:

1. Long-Term Incentives That Build Loyalty 

Forget slashing prices—focus on rewarding commitment! Offering reduced rates for extended leases (like 12 or 18 months) is a win-win strategy:

• Residents gain a stable and cost-effective arrangement.
• You secure long-term revenue, reduce turnover, and stabilize occupancy.

Plus, long-term incentives reflect confidence in your community’s quality, building trust and credibility with potential residents. It’s a clear statement: “We’re worth staying for!”

2. Wow Them With Non-Rent Perks 

Who says incentives have to mean cutting rent? Instead, stand out by creating an unbeatable resident experience. Show them you care with thoughtful extras that make moving in irresistible:

• Moving Services Covered: Partner with movers to make the process stress-free.
• Welcome Packages With a Personal Touch: Think gift baskets, welcome parties, or vouchers for your salon or gym.
• Lifestyle Boosts: Offer free transportation for medical appointments or trial memberships for local clubs or workshops.

These perks don’t just reduce barriers—they make future residents feel truly valued from day one.

3. Turn Residents Into Your Biggest Advocates 

Your current residents are your secret marketing weapon! Encourage them to bring in friends or family by offering irresistible referral perks. Reward both the referrer and the new resident with something special:

• Dining credits for your on-site restaurant.
• A free month of housekeeping or laundry services.
• Discounts on lease renewals.

This strategy not only strengthens your sense of community but also ensures new residents come pre-vetted and aligned with your culture. It’s a win for everyone!

By focusing on these vibrant alternatives, you’ll attract the right residents, foster loyalty, and enhance your community’s reputation—all without relying on discounts.

Balancing Value with Revenue Goals 

Boosting occupancy isn’t just about filling units—it’s about doing it in a way that reflects your community’s values and long-term mission. The true goal? Crafting a thriving environment where residents can flourish, meaningful relationships grow, and your organization’s reputation shines. Sustaining a successful senior living community means looking beyond short-term revenue and focusing on building a place that stands out for all the right reasons.

A Smarter Path for Senior Living Operators 

Discounts might seem like a quick fix for occupancy challenges, but they can come at a high cost, eroding your culture, financial stability, and brand value. Instead, think bigger. Focus on strategic incentives that deliver real value for both your residents and your organization.

Long-term perks, creative offers, and building a referral-driven community are the keys to maintaining your integrity while increasing occupancy sustainably. These strategies don’t just fill spaces—they strengthen your community’s appeal and ensure lasting success.

Ready to unlock the full potential of your senior living community? Contact our Markentum team today and discover tailored solutions designed to help your organization thrive.