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With the numbers OP cited. I calculated the terminal rent after 10 years on a 1000 initial rent and I came up with
1 year lease: $1118.29 vs.
2 year lease: $1104.08.
it really depends on inflation .inflation was way higher boosting the early numbers . inflation is still low . i wouldn't take the gamble for 14 bucks even back then . that first years interest on the difference in rent back then would have been more on the differences not paid . .
The reason I thought I'd ask is it wasn't till the last few years that increases were this low. I feel like eventually time will end and they will be back at the 4 percent increase. So the 2 % of 2 years this low is actually lower than most of the years 1 year increase.
When you take a two-year lease, you're essentially gambling on what the increase will be for the next year. When I sign my lease in late October every year, I try to assess the political climate. After the first 0% increase, I figured de Blasio would cave in to the real estate lobby and that we would get a hefty hike the next year.
So I signed a two-year lease based on that reasoning, and lo and behold we had another 0% increase the following year! So I missed out on not having my rent go up for two years.
It's a crapshoot either way. Don't sweat it. It's a good question though!
Last edited by macnyc2003; 10-27-2017 at 09:25 AM..
This is my first apartment and it's RS so I'm just trying to figure everything out (i went with the 2 year because i dont want to worry about an increase for 2 years lol).
I know that for a while the 1 year leases were 0%, which would obviously be the better choice, but assuming it's what the OP said, i would go with the 2 year. I also don't plan on moving again (unless i get called for another affordable apartment or I need to change my household).
I've been riding that 0%, my renewal was in August so I don't have to deal with the 1.25% until next year. My saving grace was when my friend had to find a new apartment because his rent was going up $100 and I was fretting over next years increase of not even $20. Fun stuff!
I've been riding that 0%, my renewal was in August so I don't have to deal with the 1.25% until next year. My saving grace was when my friend had to find a new apartment because his rent was going up $100 and I was fretting over next years increase of not even $20. Fun stuff!
Thing to remember is the current mayor won't be in office forever, and sooner or later a Republican will win and or something else will happen to force RGB to give LLs what they want in terms of increases. When that happens RS tenants had better watch out; because historically there have been some pretty steep rent increases.
2008 was one of the highest for 1 year leases at 4.50% . that was at a time many non stabilized apartments were falling in rent or offering incentives like 13 months for the price of 12 . we saw them all over .
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