'Tenants Win Now': A Guide for New Yorkers to Renegotiate Leases

Demand for rental housing in New York is falling sharply amid the pandemic, while the market is flooded with new offers. Real estate experts say that tenants are winning now. The publication writes about how to negotiate with the owner of a home on favorable rental conditions for you. Curbed ny.

According to the report UrbanDigsIn July, New York City had 30% more leases, but 35% fewer leases were signed compared to the same period last year.

It appears that landlords are capitulating to tenants looking for lower prices. According to Streeteasy, 34,7% of all rents in Manhattan were reduced between April and June, with an average decline of 6,7%, or $ 221 per month.

The apparent decline in rents, coupled with widespread financial pressures, is prompting many tenants to renegotiate their own leases.

“I think everyone is looking at lease renewals with a slightly more critical eye,” says Robert Khederian, a Compass agent. He recently helped several clients renegotiate their lease terms. "The tenants are winning now."

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If you're looking to relocate, here's what you need to know about preparing for the negotiation that will yield the best possible outcome.

I am in the middle of a lease. Do I have a chance to reconnect?

You can try, but it is unlikely that the landlord will make an assignment.

Ellen Davidson, a staff attorney for the Legal Aid Society, says one thing you can ask for is a rent break. The chances of success are especially great if you are having financial problems during a pandemic. But since there is a contract, your landlord can refuse.

My rent will expire soon. Can my landlord raise my rent during a pandemic?

Yes. If your rent is unregulated (that is, your apartment is not among the roughly one million stabilized rental units in the city), your landlord can raise rent by any amount, even during a pandemic.

But there is an important clarification. If the price rises by more than 5%, the landlord, according to the current legislation on renting housing, is obliged to notify you in writing: 90 days in advance, if you have lived in the apartment for two years or more; 60 days in advance if you have lived in it for more than a year, but less than two years; 30 days in advance if you have lived in it for less than a year.

If you live in an apartment with a rent stabilized, the rent is determined annually by the City Council (RGB). In June of this year, RGB decided to freeze rents for one lease year and for the first year of a two-year lease.

How to get the best deal?

Renewal of the lease is practically the only real opportunity to revise the terms of the contract. The first thing you need to do is research the market: carefully review the prices for apartments similar to yours. For example, if you live in a one-room apartment, look for a similar one-room apartment in the same building. If your building does not have such offers, look at what is currently in your area and in a building of the same type. “If you find at least three apartments that can support your argument, it will be convincing,” says Hederian.

The second step is to write or call the landlord and tell them about those similar apartments that you have found, and then discuss with him your terms of rent.

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Also be prepared to give reasons to the landlord why you are the best possible tenant. Did you pay rent even during the pandemic? Be sure to mention this.

Be polite. It is important to end the conversation with your landlord correctly. For example: “I really enjoy living here, but my research shows that the value of my apartment has changed; can we please agree on a price that reflects the fair market value of my apartment? "

If you want to hear some success stories in this business, here they are.

Sarah Lara and her fiancé Jose were able to negotiate a rent reduction for a one-room apartment in the city center, whose lease expired at the end of September.

When their landlord asked for a lease renewal with a $ 50 increase, Jose emailed the manager and gave specific examples of other one-room rooms with built-in washer and dryer currently offered in the same building, but for nearly $ 1000 less. He also mentioned that they are considering moving. The manager later agreed to lower their rent by $ 525.

Meanwhile, Mike, a resident of the Tribeca neighborhood, was able to negotiate a 2 percent rent discount, despite his landlord initially trying to increase it by 1,5 percent. Mike noted that he is looking for cheaper housing options and is considering moving. After all, the 2 percent discount came in the form of a cash gift card; Mike agreed to pay his initial monthly rent, and the landlord returned the additional amount with a gift card.

What if my landlord refuses to negotiate?

If your landlord refuses to negotiate, you have no choice but to agree to his terms or look for another place to live.

However, with a multitude of offers on the market today, including flexible short-term rentals and a large number of rental concessions, this is not the worst time to find your ideal New York home.