Posted by Mark Smith on July 17, 2000 at 17:00:54:
In Reply to: Re: 2-year lease with higher rent in 2nd year posted by Linda on July 17, 2000 at 14:54:54:
Your two-year lease gives you a fixed rent of $1,300 a month in the first year and a fixed rent of $1,365 a month in the second year.
I'm assuming that the unit isn't rent regulated. There doesn't seem to be anything illegal or unfair about a higher fixed rent in the second year.
Would you be happier with 24 months at $1,332.50 a month? The total cost would be the same, but you would be paying more in the first year and less in the second year than with the landlord's proposal. When you consider the time value of money, you would be better off with the landlord's proposal.
In New York City, under rent stabilzation, unless there is a compelling reason to do otherwise (e.g., a monthly rent less than $500), people are generally better off taking a succession of one-year leases than a succession of two year leases.
What your landlord is proposing is similar to two one-year leases under rent stabilation. For the last few years, with a 2% increase for a one-year lease and a 4% increase for a two-year lease, if your rent had been $1,000 a month, the rent during the first renewal lease would be $1,020 a month, and $1,040.40 a month during the the second renewal lease -- for a total rent for 24 months of $24,724.80. With a two-year renewal lease, your rent would be $1,040 a month for both years -- for a total rent for 24 months of $24,960.00.
: This 2 year lease isn't giving us a fixed rent. The first year the rent is $1300 and the second year it will be increased by 5%.....is this right? It doesn't seem like it to me. Thanks much
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