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NYC is very expensive! It’s easy to be taken advantage of, so we collaborated with our Super Neighbor, Brandon McKenzie, to help you KNOW YOUR RIGHTS and give you some helpful tips and tricks. Brandon is an attorney at Moss & Moss LLP, where he handles complex real estate litigation matters, and Co-Founder of ListAcross, a one-stop-shop for selling your stuff across peer-to-peer marketplaces (launching soon!).
Can management increase your rent by $1,000 when renewing your lease?
If you are in a market-rate apartment, yes.
Your landlord can increase rent by any amount - whatever the market will bear. If you’re in a rent controlled apartment, there is a legal cap on your rent, and if you’re in a rent stabilized apartment, your landlord is only allowed to increase your rent by the renewal percentages mandated by the Rent Guidelines Board.
For rent stabilized renewal leases beginning between October 1, 2022 through September 30, 2023, your landlord can increase your rent on a one-year lease by 3.25% and on a two-year lease by 5%. The Rent Guidelines Board adjusts those percentages each year, so keep an eye out for their updates.
If you’re in a market-rate apartment, and you think your landlord’s proposed rent increase is too high, here are a few effective ways to negotiate:
- Check out Streeteasy!
You can see active listings and compare their rents to yours. You’ll likely want to click on the listings themselves, because the advertised rent isn’t always the out of pocket cost. For example, check out this unit. The advertised rent is $4,293, but the Net Effective Rent is $4,007 after the 1 free month incentive on a 15 month lease. If you check out past rentals, you can do the same thing. If the deals you see on StreetEasy are better than what you’re being offered, point those deals out to ask for a lower rent.
- Have you been a stellar tenant?
Point it out! Landlords would often rather have a tenant they know is good than gamble on a new tenant. If you always pay rent on time and don’t cause issues in your building, your landlord may want you to stick around. Plus, if you leave, the landlord may lose money on having to repaint, refinish floors, and the time lost between your departure and a new tenant coming in when the landlord could be collecting rent.
- Macroeconomics Matter!
Did the Fed just raise interest rates? Is the economy dipping into a recession? Will fewer people be able to afford your apartment? If factors like these are going to hurt demand for your apartment, you may want to politely remind your landlord that you can be a sure thing if the price is right.
- Are there problems with your building that have gone unaddressed?
Have you been paying that monthly gym fee even though they haven’t fixed the broken Peloton for six months? Now might be a good time to remind them of that. If you’ve been paying for services and amenities that the building hasn’t been providing or have suffered through things like constant construction noise in the building, you might be able to sue your building for a refund of those fees, but you might be more effective in pointing out the problems to use as leverage for a rent reduction.
- Tis’ the Season.
Time of year makes a difference. Ever met someone who said “I can’t wait to go party and get wasted on New Year’s Eve, then move into my new apartment hungover on January 1 when there’s snow on the ground!” Me neither. If you’re renewing in July, expect higher rents. If you’re renewing in February, there will likely be less demand for your apartment. That may give you leverage, especially if you ask your landlord for lower rent on a fifteen month lease so your next renewal comes up in July (which is better for your landlord).
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