help with lease renewal
Hello wise, experienced Brownstoners, My husband and I currently rent a 2BR/1BA in CG that we moved into Sept 2008 (height of rental market). We are clean, responsible tenants, and always pay the rent on time. We think that we are currently overpaying by about 20% (maybe more–we have studied the comps). In addition, we…
Hello wise, experienced Brownstoners,
My husband and I currently rent a 2BR/1BA in CG that we moved into Sept 2008 (height of rental market). We are clean, responsible tenants, and always pay the rent on time.
We think that we are currently overpaying by about 20% (maybe more–we have studied the comps). In addition, we pay heat and all utilities.
We would like to renew our lease at a reduced rate, but we are also looking to buy an apartment, so we would like some flexibility in our lease should we find something to buy in the next year. We do not underestimated the difficulties our landlord would face if we ended up needing to move in a non-prime rental month, and understand our responsibilities for finding a new tenant and giving plenty of notice, or being on the hook for the rent owed toward the remainder of the lease.
However, our landlord has offered a one-year lease renewal consisting of 9% reduction and no “right to cancel” or a 2 year lease with 8% reduction, no right to cancel 1st year and right to cancel in 2nd year with 3 months notice and 2 months penalty.
Does this seem reasonable? We are concerned that if we had to move, we would be unable to find an acceptable tenant at the “inflated” rent we are paying. Of course we cannot entirely predict what the market will do over the next year…
Thanks for the help!
Consider yourself lucky. My landlord simply kept it at 0% for a new year lease plus they do not care if we move out.
Accept the deal and 1 year is do-able…
you cannot have your cake etc…
If the landlord valued you as a tenant as much as you claim, he’d be more flexible.
As a landlord myself, I’ve noticed that it’s always the “pain in the neck” tenants that claim to be “great tenants” and therefore deserve rent reductions. Great tenants don’t bother their landlords with annoying requests like lease cancellation clauses and 20% lower rent requests.
It sounds like you may have to pay a higher rent, not a lower one, to compensate your landlord for the hassle of an unplanned vacancy.
I agree that the 2 year lease option is stupid for either party. The landlord might be confused because you are asking for two things at once, and he wants to make sure his butt is covered.
If what you really want is flexibility, then offer a 6% decrease on a month-to-month lease. You move toward your reduction, the landlord gets higher-than-comps rent, you will be more than welcome to stay (he’d be foolish to try to find someone else), and yet you can leave at any time. That’s win-win.
You didn’t mention your rent, so we’re left to speculate that you’re talking about suspected inflated value of anywhere from $300-$700/month (plus additional monthly average of $? for heat. Gas+electric is normal for nearly every tenant; heat is not.) The 2-year lease you’ve been offered strikes me as ridiculous. It basically translates to a lock for the landlord of 1-1/2 years. If you’re going to sign anything, sign the 1-year lease with 9% reduction. Remember that your lease is a legal contract. Clauses which are illegal under NYS law are unenforceable. By same token, under NYS law, if you wanted to move before your lease expired, you would have the right to recommend a tenant to replace you, whom the landlord could not reasonably refuse. Be certain that you thoroughly read, understand and are willing to live with whatever you sign.
Perhaps you could offer to forgo the 9% reduction in rent in exchange for more flexibility in the lease. While it would be painful to continue to overpay, it will likely be cheaper than the cost of moving.
I actually think his/her response sounds smart and reasonable. You got the reduction in rent that you asked for. You say that you “do not underestimate the difficulties our landlord would face if we ended up needing to move in a non-prime rental month” — neither does he and he’s taking measures to protect himself. The market is softer for sure, but it’s not that soft. I don’t even live in a prime nabe and just rented an apt that was listed on Craigs’ List for all of 2 weeks.
IF you’re seriosly considering buying something, do you really want to move twice within the next 1 to 2 years? The transition costs (broker fees + moving fees) and the hassle (new cable + phone + eveythring) would make me question whether it’s worthwhile.
If you are sure you are overpaying, why would you even consider staying at your current rent? Based on your description, it sounds like you would have no problem finding your apartment for much less.
Unreasonable or not, your landlord obviouslly feels that they can get the same or better from someone else in the current market. Whether or not this is true has no bearing on the situation.
If you feel it’s unreasonable, offer a counter offer, but be ready to get ‘no’ as an answer.