---
title: How to apply a rent discount
description: Handle a rent discount in OWNER with sales items. Compare two methods and see how they differ once the rent is indexed.
---
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October 20, 2026
# How to apply a rent discount
## Two ways to handle a rent discount with sales items, and how they differ when the rent is indexed.
Have you agreed on a rent discount with your tenant? You can handle it in two ways with sales items in the rental contract. The choice matters as soon as the rent is indexed.
**In this article**
1. [The example](https://knowledge.owner.app/en/apply-rent-discount#voorbeeld)
2. [The two methods](https://knowledge.owner.app/en/apply-rent-discount#twee-methodes)
3. [What is the difference?](https://knowledge.owner.app/en/apply-rent-discount#verschil)
## The example
The rent at the start is €50,000 per year. The rental contract is indexed by 3% every year, for the first time one year after the start. The tenant gets this rent discount:
| Year | Rent discount |
| --- | --- |
| Year 1 | €10,000 |
| Year 2 | €5,000 |
| Year 3 | €1,000 |
## The two methods
### Method 1 – base rent plus a separate discount
| Sales item | Amount | Term | Index |
| --- | --- | --- | --- |
| Rent | €50,000 | Ongoing | On |
| Rent | -€10,000 | Year 1 only | Off |
| Rent | -€5,000 | Year 2 only | Off |
| Rent | -€1,000 | Year 3 only | Off |
### Method 2 – reduced rent per year
| Sales item | Amount | Term | Index |
| --- | --- | --- | --- |
| Rent | €40,000 | Year 1 only | Off |
| Rent | €45,000 | Year 2 only | Off |
| Rent | €49,000 | Year 3 only | Off |
| Rent | €50,000 | From year 4, ongoing | On |
You add sales items in the rental contract. See [Sales items](https://knowledge.owner.app/en/sales-items?hsLang=en).
## What is the difference?
With method 1, the base rent of €50,000 is already indexed after the first year; the discount is deducted separately. With method 2, the rents for the first three years are fixed and are not indexed. Here's what that looks like over five years:
| | Method 1 | Method 2 |
| --- | --- | --- |
| **Year 1** | €40,000 | €40,000 |
| **Year 2** | €46,500 | €45,000 |
| **Year 3** | €52,045 | €49,000 |
| **Year 4** | €54,636 | €50,000 |
| **Year 5** | €56,275 | €51,500 |
| **Total** | **€249,456** | **€235,500** |
In this example, method 1 brings in €13,956 more rent over five years.
**Note:** check how the rent discount is described in your lease agreement. You may not be free to choose between method 1 and 2.
Is the rental contract only indexed after the rent discount ends? Then it doesn't matter which method you choose: both result in the same rent.
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