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Old 05-01-2012, 03:38 PM
 
2,503 posts, read 3,527,418 times
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Quote:
Originally Posted by Cida View Post
I think once upon a time there used to be 10 year leases!

Landlords are too greedy now.
Yes of coarse...ALL landlords are greedy. Sure.

Depending on the person and the vibe I get from them is the deciding factor if I give them a 1 or 2 year lease.

If I'm a little iffy on the prospective tenant, I keep them on a short leech and give them a 1 year lease. That way if they turn out to be ghetto or loud people, I won't renew their lease if deregulated or I'll charge them the higher legal rent amount if the apartment is rent stabilized. Either way, the tenant is removed from my property if they turn out to be bad.
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Old 05-01-2012, 03:50 PM
 
Location: Beautiful Pelham Parkway,The Bronx
8,394 posts, read 19,664,519 times
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Quote:
Originally Posted by Cida View Post
I think once upon a time there used to be 10 year leases!

Landlords are too greedy now.
Landlords are not greedier.If they used to give 5 and 10 year leases it was because there was little or no expectation that rents would be going up much.Times were different.Right now,everyone is expecting rents to continue to climb rapidly for the foreseeable future.Why would a business person lock himself into selling his product at a price that could wind up being substantially below it's value ? That just doesn't happen. People are in business to make as much money as possible.
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Old 05-01-2012, 04:12 PM
 
2,503 posts, read 3,527,418 times
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Quote:
Originally Posted by bluedog2 View Post
Landlords are not greedier.If they used to give 5 and 10 year leases it was because there was little or no expectation that rents would be going up much.Times were different.Right now,everyone is expecting rents to continue to climb rapidly for the foreseeable future.Why would a business person lock himself into selling his product at a price that could wind up being substantially below it's value ? That just doesn't happen. People are in business to make as much money as possible.

Thank you Bluedog...well said.
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Old 05-01-2012, 05:25 PM
 
64,846 posts, read 66,327,513 times
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Quote:
Originally Posted by bluedog2 View Post
Landlords are not greedier.If they used to give 5 and 10 year leases it was because there was little or no expectation that rents would be going up much.Times were different.Right now,everyone is expecting rents to continue to climb rapidly for the foreseeable future.Why would a business person lock himself into selling his product at a price that could wind up being substantially below it's value ? That just doesn't happen. People are in business to make as much money as possible.
i find it interesting that everyone expects raises and bonus's at whatever they do for a living but landlords are not supposed to .
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Old 05-01-2012, 10:21 PM
 
Location: Bronx, NY
9,835 posts, read 21,532,714 times
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Quote:
Originally Posted by Nyc77 View Post
Just wondering is there a such thing as a two year lease anymore?
I see/hear about less and less of them.
I heard the lease use to go 1 2 and 5 year..is that right?
Should I bring it up when looking for an apartment?
I like the Archstone in midtown west
2 year lease is still very common. Maybe downtown in manhattan they are rare but elsewhere, no.
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Old 05-02-2012, 07:40 AM
 
Location: Manhattan
20,185 posts, read 26,506,670 times
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Quote:
right now a 1 year is 3.75% and next year is not known.. lets say its 5% ... 5% on top of the 3.75% the year before is alot cheaper than a 2 year .

with a 2 year you pay 7.25% year 1 and 7.25% year 2
But, given your scenario there is another consideration:
Assuming you start at $1000 for each scenario;
Under the one year lease increaes to 1037.50 for year one and $1089.37 for year two...and then you await the next determination of the Guidlines Board.
Under TWO year lease scenario of finish year two at $1072.50. And that $17 differential is with you forever and it will grow each and every 2 year choice.

Over 20 years of this, with each increase based on the last decision, there will be quite a discrepancy between the two. A lot depends on the precise numbers, but history has shown that those stabilized tenants who took two year leases are paying quite a bit less than those who chose one.
(I'd grind a few years with actual numbers but life is too short. )

In the first couple years the total outlay for rent may be higher, but it is quickly mooted by the ever increasing BASE rent of the single year lease.

I have a friend who has said "I'm not going to be here long" and has thus taken only single year renewals and now 14 years have passsed...best laid plans and all. I ran her numbers and she'd have done quite a bit better with two year leases.

Historically, those taking 2 year leases have done a LOT better although the gap is narrowing with recent RGB guidlines.

You pay somewhat more in the beginning (for 2 year leases) but payback comes fairly soon and thus long term tenants are rewarded generously.
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Old 05-02-2012, 07:52 AM
 
64,846 posts, read 66,327,513 times
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the last decade 2 year leases have been big losers for tenants.. i dont really feel inclined to go back further and play with the numbers but feel free to play.
they had a few years already worked up on the nyc guidelines site

2007 -2008 3% one year 5.75 two year
actual 2nd year if you took one year 4.5%

2008-2009
4.5 % one year 8.5 two year
actual 2nd year if you took 1 year 3%

2010-2011 one year 3% two year 6%
actual 2nd year if you took 1 year 2.25%

the one year was the cheapest not only by the year but like you said the compounded difference on the 2 year came to alot more down the road on the above.

Last edited by mathjak107; 05-02-2012 at 08:40 AM..
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Old 05-03-2012, 08:59 AM
 
Location: Manhattan
20,185 posts, read 26,506,670 times
Reputation: 9059
I'm not quite sure I get your drift. Are you agreeing with me or disagreeing?


2007 -2008 3% one year 5.75 two year
actual 2nd year if you took one year 4.5%


Mr. $1000 starting rent who chooses annual increase in 2007-2008 goes to $1030 and then to $1076.35 for the second year...and this will be his base for year 3.

Mr. $1000 starting rent who chooses a two year renewal will start year 3 with a base rent of $1057.50.


Now, practicall speaking, I am CERTAIN we are in a period of price inflation that will accelerate and thus the gains made by taking longer leases will amplify.

Although neither of us has the oomph to do it, I challenge anyone to take Mr. $1000 rent over the last 20 years to determine the difference in current rent via the two methodologies. I am sure you will be ASTOUNDED how much difference all that compounding makes. And to be clear, I am SURE the difference will be in favore of Mr. 2 year renewer.

But reallly, all that work would be a pain in the ass.


Yes, I do not disagree that recent years have not been quite so favorable to Mr. 2 year as they have in the past, but the advantages are still there.

Mr. 1 year can benefit only with a steadily falling rate of increase. We dont see that very often (Except for Social Security checks that is.)

Last edited by Kefir King; 05-03-2012 at 09:19 AM..
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Old 05-03-2012, 09:10 AM
 
64,846 posts, read 66,327,513 times
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the 1 year doesnt need a steady rate of falling increases ,it just needs smaller increases than the 2 year.

the fact that once the 2 year takes the position of being more expensive and all increases are compounded on that higher amount make it pretty difficult to reverse back again.
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