One-year versus Two-year lease (apartment, price, guide)

[libralibra]

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?

[Viralmd]

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.

[Carbro]

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.