Q: The lease on my daughter’s Midtown Manhattan apartment expires in May perhaps, and she is involved about a rent hike. When she signed the lease, she got two months of absolutely free hire. Now, similar units in the creating are renting for 35 per cent more than what she’s having to pay. Could the landlord truly increase her hire that much? Can she negotiate?
A: A landlord can increase the rent on a market place-rate condominium by any sum, or not renew the lease, so lengthy as the tenant gets right observe centered on how lengthy they’ve lived in the apartment. Offered the present-day current market situations, it is likely your daughter’s rent will go up.
In January, rental inventory was down 60 p.c citywide and the median inquiring rent was up 34.5 % in Manhattan and 13.5 p.c in Brooklyn 12 months above yr, in accordance to StreetEasy. The end result is a frenzied rental market with bidding wars and lines out the doorway for open homes. Any tenant who signed a lease during the past two several years, when rents ended up down and concessions have been typical, must be geared up for a attainable hire hike.
But brokers insist that negotiations are attainable, even in a aggressive current market. “People ignore that they can negotiate,” mentioned Erin Whitney, a saleswoman at Bohemia Realty Group. “The initially rule is often do it.”
Here are some negotiating recommendations from the authorities:
Do your homework. “Do your exploration on rentals in the creating, on the block and in the neighborhood to make absolutely sure the renewal price your landlord is offering is good and in line with the current sector,” reported Lauren Riefflin, StreetEasy’s home tendencies qualified. “Leverage that information in discussions with your landlord.”
Start out the discussion early. Call your landlord at the very least 3 months just before the lease expires and check with no matter whether the rent will be going up. This will give you time to negotiate and take into account your selections.
Participate in to your strengths. Vacancies expense landlords cash — they drop rent while they clear, paint, maintenance and display the apartment. And they may have to shell out the broker’s fee, much too. A new tenant may well be noisy or not spend on time. Level out these threats, and inquire for a compromise. Possibly you could shave $100 a month off the maximize. Or, find other strategies to preserve. Talk to for an 18-thirty day period or 24-month lease to lock in the conditions for lengthier. If you spend a pet or amenity cost, potentially the landlord may well waive one. Or possibly you could use the chance to get some repairs, like a new stove to switch an growing old a single. “There are loads of strategies that you can frame a good discussion with your landlord,” said Vicki V. Negron, an affiliate broker with Corcoran.
Take into consideration your individual costs. Relocating is not cheap. Compute how a lot it will price tag you to transfer, factoring in a going van, a broker charge and other associated expenses. Then estimate the improve over the system of the year and decide whether or not you are going to come out ahead if you stay or if you go.