Posted by Mark Smith on May 30, 2000 at 08:15:20:
In Reply to: Re: Two-year renewal? to avoid same lawsuit posted by brenda on May 29, 2000 at 23:46:13:
In recent years, it has been better for most people to choose a series of one-year renewal leases, with 2% rent increases, instead of two-year renewal leases, with 4% rent increases.
With two one-year leases, the rent is slightly higher during the second year of a two-year period, because of the compounding of the rent increases. But the rent is lower during the first year of a two-year period.
Of course, the base rent before the third year of one-year renewal leases is slightly higher because of the compounding, but the rent would be lower in the third year if the tenant chose another one-year renewal lease, instead of a series of two-year renewal leases.
However, there can be situations where choosing a two-year renewal lease might be better. Someone who wants to sublet his/her apartment might choose a two-year renewal, because most sublessees want as long a sublet as possible.
Where a landlord says that the tenant is not occupying the apartment as his/her primary residence, the tenant would get two years to cure the alleged non-primary residence, IF the tenant can invalidate the Golub Notice and chose a two-year renewal lease. The same would apply if a landlord said it wanted an apartment for his own use or the use of his immediate family.
: : : : If the Golub Notice had not been timely served, then the landlord would have to renew the lease and wait another two years (if the tenant wisely chose a two-year renewal lease) to serve a timely Golub Notice near the end of the term of the renewal lease.
: : : Just a naive question, if you don't mind -- why would a tenant be wise to choose a two-year renewal?
: : : In recent years it has made more economic sense to choose one-year renewals, because of the lower increase. Since a landlord must renew the lease, why renew for two years if one year makes more economic sense?
: : Economic sense as far as RENT goes, but tenant will be exposed to new Golub Notice and new expensive lawsuit in less than one y
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