{"id":13832,"date":"2020-12-03T22:48:24","date_gmt":"2020-12-04T03:48:24","guid":{"rendered":"https:\/\/www.renthop.com\/content-manager\/?p=13832"},"modified":"2023-07-22T11:36:36","modified_gmt":"2023-07-22T15:36:36","slug":"how-to-negotiate-your-rent-for-next-year","status":"publish","type":"post","link":"https:\/\/www.renthop.com\/blog\/how-to-negotiate-your-rent-for-next-year\/","title":{"rendered":"How to Negotiate Your Rent – For NEXT Year"},"content":{"rendered":"\r\n

Everyone knows there are amazing New York City rental<\/a> deals this year. Luxury buildings giving 4 months free on a one-year lease. Never-before-seen perks, no broker fees, gift cards, the works. That’s all fine and consumer-friendly for this year. But how about next year? What do you need to do when it comes time to negotiate your rent?\u00a0<\/p>\r\n

Rent Renewal Example\u00a0<\/h2>\r\n\r\n\r\n\r\n

First, let’s find a typical luxury one-bedroom building. The net effective rent<\/a> is $2,535, after receiving 4 months free on a 14-month lease.<\/p>\r\n\r\n\r\n\r\n

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You might wonder why buildings are going for 4 months free on a 12-month lease as opposed to simply lowering rent. For one, there is the classic accounting trick. That 1 bedroom in Long Island City<\/a> will still show up on the books as a rented apartment for $3549 a month – the gross rent.<\/p>\r\n\r\n\r\n\r\n

The four months free they gave, amounting to $14,000, will be “charged” to the marketing department. They also likely paid the broker fee<\/a>. There sure are a lot of extra marketing dollars being spent during the pandemic!<\/p>\r\n\r\n\r\n\r\n

The Renewal Trap<\/h2>\r\n\r\n\r\n\r\n

Ok, so they like to trick the accountants and investors. Does that matter to a consumer who is getting a great deal? Yes! Because, the amount on your lease will still say $3,549 per month (it will also have a lot of legal language around the net effective rent during those 14 months). However, what happens when it comes time to renew?<\/p>\r\n\r\n\r\n\r\n

Well, if you do nothing at all, in theory your rent suddenly skyrockets up to the gross rent. Some leases revert to a month to month lease after the initial period, and the burden is on the consumer to terminate with enough notice.<\/p>\r\n\r\n\r\n\r\n

Your rent could jump 40% from $2,535 net effective to $3,548 next year!<\/p>\r\n\r\n\r\n\r\n

Will most landlords actually try that? Probably not. They will most likely try to get you to sign a new lease renewal when the time comes. However, the baseline for negotiation is not necessarily your net effective. It will be something much higher, especially if NYC rentals are back in high demand come 2022.<\/p>\r\n\r\n\r\n\r\n

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