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By "paying more" people can mean two different things.
One is the actual base rent and other is amount paid over time of lease.
Median legal rent for stabilized units where the tenants renewed their lease was $1,509 for fiscal year 2021-22. OTOH median rent was $2,324 for units where a new tenant signed a lease.
Plugging in those rents a tenant renewing lease with current increases would pay:
$1.561.81 for one year (at 3.5% increase of 52.81)
$1,584.45 for two year (at 5% increase of $75.00)
Yes, taking two year renewal means paying that additional $75 for entire 24 months of lease. That comes out to about $1,800 in total.
OTOH with just one year lease even if RGB votes exact same increases in 2023 adding lowest number (3.5%) means an increase of about $54.66 giving a new legal rent of 1,616.47
With only one wear increase for 2023 person paid $633.72 total extra rent for twelve months.
If they take another one year as noted above in 2024 that works out to about $655.92. Thus total extra rent for those two years in sum is $1,289.64.
So yes in theory taking one year lease renewal in above scenario may work out to be cheaper, but only if future increases remain within a tight range year to year.
By taking one year renewals base legal rent rises faster and *THAT* is what future increases are based upon. If RGB votes increases well outside of said tight range it will eat at any future "savings".
For good number of RS households it is the legal rent (amount they must write a check for each month) that is largest worry.
Since state has pretty much removed any way a LL can remove RS tenants other than for things like non-payment, people should take whatever renewal that results in monthly nut they can crack.
Lots of people are going to be taking one year increases this time around because they simply cannot handle $70 or more increase in rent per month. Thirty some odd they can handle (or try) and since those are the only two options on table that's that.
Two year renewals made some since when RS laws expired every several years and it wasn't always certain Albany would renew and in what form. Again 2019 laws changed all that and unless political winds change RS is here to stay.
Older friend just took two year increase relying on old school wisdom. Numbers really don't work out but sometimes people are just set in their ways.
Another thing; quite honestly many of these older RS units aren't worth $1500 or nearly $2000 landlords are getting in legal rent. Those going for >$2100 in older buildings see an almost constant turnover year to year. People realize they can do better for same or bit more money with any of the tons of new construction even if it means moving to Brooklyn or Queens.
Many older RS apartments look like shy*. Good number haven't been touched since current tenant moved in 20, 30 or more years ago.
Choose short term<one year> if your life (and loves) and jobs are fluid. Longer two year leases if you are stable and don't hav e "a landlord from HELL."
Choose short term<one year> if your life (and loves) and jobs are fluid. Longer two year leases if you are stable and don't hav e "a landlord from HELL."
With 2019 rent laws breaking or walking away from a lease is lot less bother than before. Anyone in a RS apartment that has below market rent won't be bothered by LL if they seek to vacate before lease expires.
Again it really just comes down to what a household can afford. New rent laws are permanent and even further entrenched such tenants in RS units. Long as people pay their rent and otherwise live up to terms of lease (or not in certain circumstances) they cannot be touched.
Thus taking a two year rent renewal that comes with a substantial increase in rent does not make any sense. This even with supposed hypothetical savings.
If a household is rent burdened at $1,509 then adding another $70 or so per month to that nut isn't going to help. Unless total household income dramatically increases they are just going to be further underwater. Thirty to forty dollar increase is bad enough but perhaps doable.
Depends on the political winds but in recent memory it’s almost never been advantage to sign a 2 year lease.
Again recent memory is 8 years of BdeB who as mayor effed landlords by getting RGB to do his bidding.
Looking at RGB orders from Dinkins, Rudy G and Bloomberg administrations it's a wash.
Remember we have luxury of looking at numbers in hindsight, something people renewing leases back then did not. RGB voted some very steep increases, especially in years about from 1999 through 2014.
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