U.S. Cities  

Go Back   City-Data Forum > U.S. Forums > New York > New York City
Register Blogs Search Today's Posts Mark Forums Read

Welcome to City-Data.com forum! Make sure to register - it's free and very quick! You have to register before you can post and participate in our discussions with 700,000 other registered members. User profiles and some forums can only be seen by registered members. After you create your free account you will be able to customize many options, you will have the full access to over 15,000 posts/day about local topics and you will see fewer ads.

Get a detailed profile
Search Forums  (Advanced)
Business Search - 14 Million verified businesses
Search for:  near: 
Reply


 
Old 03-05-2008, 12:55 PM
Junior Member
 
Join Date: Mar 2008
1 posts, read 4,032 times
Reputation: 12
libralibra is on a distinguished road
Default One-year versus Two-year lease

My rent-stabilized apartment's lease is up for renewal and I don't understand the advantage to signing a two-year lease at a 5.75 percent increase over a one-year at a 3 percent increase. Over the course of a year it will be about $500 more we pay this coming year. How much would the rent have to increase the following year to justify paying the extra 2.75 percent starting this year?

Is there an advantage to a two-year lease in a rent stabilized apartment?
Reply With Quote Quick reply to this message

 
Old 03-05-2008, 03:45 PM
Moderator
 
Join Date: Sep 2006
6,202 posts, read 5,172,076 times
Reputation: 1914
Viralmd has a brilliant future
Viralmd has a brilliant futureViralmd has a brilliant futureViralmd has a brilliant future
Do the arithmetic. If you signed a two-year lease, you'd pay more up front, but in the long run you'd save some money. Because you'd likely be signing a one-year lease at a 3% increase then, after another year, pay another 3% increase, which is on top of the first renewal lease's increase.
Reply With Quote Quick reply to this message
 
Old 03-05-2008, 04:22 PM
Senior Member
 
Join Date: Jan 2008
Location: UWS -- Lucky Me!
753 posts, read 675,280 times
Reputation: 102
Carbro will become famous soon enoughCarbro will become famous soon enoughCarbro will become famous soon enough
Actually, for stabilized apt. right now, I would definitely sign for two years. I expect, with the price of everything rising so fast now, that when the Rent Guidelines Board sets the next increase, it will be substantially higher. What you do when you choose a 1- vs. 2-year renewal is gamble on whether next year or the year after will have the higher increase.

One year, when I renewed for a shorter lease, I really lucked out. It took me out of a cycle that was hit by a really major increase one year.
Reply With Quote Quick reply to this message
 
Old 09-27-2008, 01:27 AM
Junior Member
 
Join Date: Sep 2008
1 posts, read 3,247 times
Reputation: 12
smoothdude is on a distinguished road
I'm trying to figure this out myself and I did do the math but it doesn't agree with what you guys are suggesting.

My rent will go up 4.5% for a 1 yr lease or 8.5% for a 2 year lease. I did the math assuming that when I renew again next year it will be 4.5% again for next year...and figuring it all out would cost me about another $400 total.

The thing is from the way I understand it, is that I'm gambling that the NYC laws for next year won't allow the renters to say, increase the yearly rent to like 5.5 percent per year or higher.. I am in a rent stabilized (or maybe controlled I always forget which one) apartment.

Thanks I'm interested to hear more feedback before I send off my contract.
Reply With Quote Quick reply to this message
 
Old 01-02-2009, 12:07 PM
Junior Member
 
Join Date: Jan 2009
3 posts, read 3,514 times
Reputation: 10
oopsiedoop is on a distinguished road
I an exactly the same position and the math does not compute at all -- even on a higher rate next year -- even in three years.

Say my rent is 1000 dollars, and the increases were 4 or 8 percent this year (just to make things simpler, the principles are still exactly the same):

This year I pay 1040
Next year, even if it goes up to SIX percent, a full two points higher than this year, I will pay a higher rent than I would if I'd signed a two year (1100 roughly), BUT I will have SAVED the equivalent $20 a month amount this year, AND it just might not go up to six percent.

I ran these numbers for three years at 6 percent and I'm still doing the same or lower than paying double the increase at once. I don't know about four years, but what kind of rent stabilization would it be that had increases going up 10 percent or HIGHER???

What really irritates me is I emailed Metropolitan Council on Housing and the Rent Stabilization Board and neither one answers.
Reply With Quote Quick reply to this message
 
Old 01-02-2009, 02:39 PM
Senior Member
 
Join Date: Aug 2008
Location: Manhattan
326 posts, read 227,385 times
Reputation: 196
nyctc7 has a spectacular aura aboutnyctc7 has a spectacular aura aboutnyctc7 has a spectacular aura aboutnyctc7 has a spectacular aura about
Quote:
Originally Posted by oopsiedoop View Post
I an exactly the same position and the math does not compute at all -- even on a higher rate next year -- even in three years.

Say my rent is 1000 dollars, and the increases were 4 or 8 percent this year (just to make things simpler, the principles are still exactly the same):

This year I pay 1040
Next year, even if it goes up to SIX percent, a full two points higher than this year, I will pay a higher rent than I would if I'd signed a two year (1100 roughly), BUT I will have SAVED the equivalent $20 a month amount this year, AND it just might not go up to six percent.

I ran these numbers for three years at 6 percent and I'm still doing the same or lower than paying double the increase at once. I don't know about four years, but what kind of rent stabilization would it be that had increases going up 10 percent or HIGHER???

What really irritates me is I emailed Metropolitan Council on Housing and the Rent Stabilization Board and neither one answers.
I think we should get Marilyn Vos Savant on the case.
Reply With Quote Quick reply to this message
 
Old 01-02-2009, 04:22 PM
Senior Member
 
Join Date: Oct 2006
4,270 posts, read 1,896,089 times
Reputation: 1431
mathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud of
i think the one year is a better deal usually... your paying a premium on a 2 year lease to lock in the same rate for both years and your betting that the increase the 2nd year will be even higher than the percentage you got on the 1 year now .... i dont think its a good deal with inflation falling and deflation even starting to poke up its head.


i just got screwed on trying to lock in propane prices for the winter in my pa home. i though i was smart locking in the price when oil dropped.. problem is though when you lock in they dont use todays spot price, they use the futures prices going out a few months and those are way higher. im probley paying 100 bucks a month more now then if i didnt prebuy based on the futures contracts
Reply With Quote Quick reply to this message
 
Old 01-02-2009, 04:32 PM
Senior Member
 
Join Date: Oct 2006
4,270 posts, read 1,896,089 times
Reputation: 1431
mathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud ofmathjak107 has much to be proud of
Quote:
Originally Posted by Viralmd View Post
Do the arithmetic. If you signed a two-year lease, you'd pay more up front, but in the long run you'd save some money. Because you'd likely be signing a one-year lease at a 3% increase then, after another year, pay another 3% increase, which is on top of the first renewal lease's increase.


its still cheaper on the one year assuming the same increase the 2nd year

10,000 dollars x 1.03= 10,300 1st year
10,300 x 1.03 = 10,609 2nd year

total rent for 2 years 20,909


now lets do 2 year

10,000 x 1.0575=10,575 1st year
10,575.00 2nd year

total for 2 years 21150.00
Reply With Quote Quick reply to this message
 
Old 01-02-2009, 04:48 PM
Senior Member
 
Join Date: May 2007
Location: Bronx, New York
1,139 posts, read 1,257,850 times
Reputation: 141
scatman will become famous soon enoughscatman will become famous soon enoughscatman will become famous soon enough
Signing 2-year leases gave me more time to save money to buy my own apartment! It also kept me, at the time, in Park Slope for 15 years.

However, I was in a studio that was very crowded. The stuffiness gave me some health problems, all of which was gone when I moved into my 1BR condo. I may have benefitted with a 1 year, having to get out of that studio.

You have to look at the benefits and tradeoffs and 1 v. 2 year and how it may affect you. 1-year gives you little time, but if you don't like your apartment, you can jet sooner. 2-year locks you in longer, but you have time in your apartment to either offset an increase or save for something else.
Reply With Quote Quick reply to this message
 
Old 07-15-2009, 07:35 PM
Junior Member
 
Join Date: Jul 2009
1 posts, read 1,209 times
Reputation: 10
lcarter7 is on a distinguished road
I'm still not sure what would benefit me more; signing the one year lease or two.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.



Reply


Quick Reply
Message:

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Similar Threads


Go Back   City-Data Forum > U.S. Forums > New York > New York City

All times are GMT -6. The time now is 06:11 PM.

Copyright © 2005-2009, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13 - Top