2023 RGB increases - 1 year or 2?

[citynative]

Hi all - i know this question has been asked, but havent seen a thread since the June 2023 decision came out where 1-year renewal at 3.0% and 2-years at a combo first year at 2.75% and second year at 3.20% - i know no one can see into the future, and i know there's always a debate on 1 vs 2 years, but given this new model, does it make most sense to do two years? Some points:

- Im definitely staying 2 years

- I always signed a one year, bc it seemed to make mathematical sense

- however, 2.75% for the coming year and a guaranteed 3.20% the second year might make more sense in this Adams admin. I do think the jump will be high in 2024 and lower in 2025 when its election year, but who knows.

Has anyone given this new model much thought? I research a lot on the internet and its so 50/50 on 1 vs 2 years - but never saw this model of two different rates and havent seen a thread on this since the decision was finalized in June.

[TenantNet]

Sorry for the delay in responding. As I'm sure you know, today, 10/1/23 is when the new RGB order No. 55 goes into effect.
https://rentguidelinesboard.cityofnewyo ... -order-55/

It's a bit unusual as it bifurcates a two-year renewal, for the first year it would be a 2.75% increase and for the second year, it would be a 3.20% increase. It's a little murky (and I haven't seen any clarification) as it seems the 2nd year increase would be compounded on top of the 1st year increase. So adding the two together, 2.75% and 3.20% might be even closer to 6%. Of course this is outrageous - and remember it was Eric Adams who put this into motion.

However, one must also look at it in context. It's not the highest increase ever by no means. Back in the early 80's there were a few years where the increases were around 15% to 17%. Still, that's no excuse.

As to your question, this has been discussed many times on this forum ... increases are based on who is Mayor and they seem to go up for a year or two, then down, and so on. They also seem to go down when an election is upcoming.

Over time, 2 year leases tend to create rents that in the aggregate are less than if one always too one-year increases. That seems to be the trend, but as you know, there are exceptions and this might be one. Go back to 1969 (Order No. 1) and in two columns, take a starting rent and add up single year increases every year, and in the other column, add up two-year increases every other year. See what you get.

As for next year, no one knows, but we would have to see runaway inflation far worse than what we've seen to go much higher. OTOH, it could go down.

BTW, this is not the first time where the rates were split. See Order No. 53 where the first years was split into two 6 month periods.
https://rentguidelinesboard.cityofnewyo ... -order-53/

Also see Order No. 52 where a two-year renewal lease was split
https://rentguidelinesboard.cityofnewyo ... -order-52/