Dumb 2-year Lease Rent Question

This is such a beginner question but it’s been years since I issued a 2 year lease. I have a 4 family building and a tenant who may be interested in renewing for 2 years.

How does the rent work – let’s say their current rent is $3500 and i want to raise it 8 percent for one year and 10 percent for two. (it;s a 1400 sf 4 BR apt with a back yard and my rents plummeted during Covid. Trying to bring them back up to $4000 or more).

do they pay the 10 percent for two years, or 8 percent for first year and 10 percent for the second?

Thanks.

Guest User | 2 years and 11 months ago

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Guest User | 2 years and 11 months ago

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@Bricktop2 it is not a requirement for all tenants to receive 90 days notice of lease renewal. Amount of notice required depends on the amount of time they have been tenants. Look at the FAQ sheet I shared in previous post to determine how much notice is needed

resident2 | 2 years and 11 months ago

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You need to give 90 days notice of any rent increase of more than 5%.
I would never give a 2 year lease if it is not rent stabilized. A lease only holds the landlord, it does not hold the tenant, if they need/want to leave they can, it is not worth your time or money chasing them.
Giving a two years lease only gives a tenant more options; their family / life problems becomes your problem for longer. A one year lease keeps the good faith on both sides. Whats good for the goose etc….
Is this a tenant that used to pay much higher? or a recent tenant that came in paying the lower rent? If it is the second they will begrudge any extra large increase, better to not renew & start again to get the true market price again.
But as I said before , from long experience do not give 2 year lease. I have tenants that have been in my buildings for 10-15 years, one year at a time…..

Guest User | 2 years and 11 months ago

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I believe you can structure however your want. However, it is important to pay attention to page 7 of this PDF about new rules for length of notice regarding renewal offers: https://ag.ny.gov/sites/default/files/changes-in-nys-rent-law.pdf