Need advice: Should I sign a one year or two year renewal lease? (apartment)

[nyla07]

I have been computing the math for both and although the 2year is supposed save you money in the long run, I don't know why the 1year is adding up to being cheaper. This year the rates are 3% and 6%.

I like my apartment. The rent is great, but there are a lot of cigarette/pot smokers in my building. I'm hoping this will improve but so far no action has been taken.

I'm concerned about paying a premium for keeping the rent low and then possibly having to break my lease early because of the smoke.

Which one is better for my situation? Thank you.

[mathjak107]

you are correct 1 year is cheaper 99% of the time. you first thought is a 2 year should be cheaper but its not. the reason is you pay a premium over and above to lock in the following years rate kind of like buying insurance.

2 year hasnt paid off for at least a decade now, maybe more as the increases granted have been smaller then the premium you pay


this is probly the biggest myth that tenents have that a 2 year is always cheaper.

[kemcnyc]

I am actually in yr 1 of a 2 yr renewal and kind of regretting it. I think rents are steadily dropping in NYC. I would recomend the 1 yr to keep your options open.

[drkman]

Originally Posted by mathjak107

you are correct 1 year is cheaper 99% of the time. you first thought is a 2 year should be cheaper but its not. the reason is you pay a premium over and above to lock in the following years rate kind of like buying insurance.

2 year hasnt paid off for at least a decade now, maybe more as the increases granted have been smaller then the premium you pay


this is probly the biggest myth that tenents have that a 2 year is always cheaper.

I have tried to explain that to people but I can't get anyone to believe me.

[Jdawg8181]

get the one-year...esp. if you think you may be unhappy there. That way you don't have to go through with all the mumbo jumbo of breaking a lease, if necessary.

[mathjak107]

Originally Posted by drkman

I have tried to explain that to people but I can't get anyone to believe me.

even i fell for it , i only worked the numbers recently and realized we have been fools all these years

[nightcrawler]

Either 1 or 2 it really doesn't matter because when you do the math, there is only a difference of about 16 dollars a year, using a base rent of 1500.00 with 3 and 6 percent.
I did the calculations.