Assignment/New lease increase

[Jasmine]

Hi, I'm in the process of negotiating a sublet into the assignment of a new lease. The landlord says he'll do the assignment but wants me to pay more than the 20% increase for a new lease. Is this even close to legal?

Thks
J

[consigliere]

Jasmine asked:
 
Hi, I'm in the process of negotiating a sublet into the assignment of a new lease. The landlord says he'll do the assignment but wants me to pay more than the 20% increase for a new lease. Is this even close to legal?

 
 
Are you asking about an assignment or a sublet? It can't be both.
 
If a landlord consents to a sublet, the tenant can charge the subtenant 10% above the legal rent for a fully-furnished apartment, plus an additional 10% sublet surcharge allowed the Rent Guidelines Board.
 
If a landlord consents to an assignment (which he is not required to do), he is entitled to a vacancy increase, which would be a minimum of 20% for a two-year lease. It could be higher if the apartment hasn't received a vacancy increase in at least eight years.
 

[Jasmine]

Sorry for not being clear. I'm referring to the assignment of a 1 year lease. The apartment has not been vacant for over 10 years.

Thanks
J

[Jasmine]

I've figured out that the apartment hasn't received a vacancy increase in the last 8 years. Am I correct in saying the the LL can add an additional .6% on to the increase? So for a ne 2year lease the without any renovations the maximum increase is around 20.6%. What should I do if the LL is asking for a whole lot more than this, around 40% while not doing any improvemnents?

Thanks
J

[consigliere]

If the apartment hasn't received a vacancy increase in 10 years, the landlord would be entitled to a 24% increase for a one-year lease (the 18% minimum for a one-year lease, plus 0.6% per year for each of the 10 years for which there hasn't been a vacancy increase).
 
A 40% increase, without any improvements, is improper. Of course, the landlord doesn't have to consent to an assignment, but a 40% increase wouled also be improper for a new lease, without any improvements.
 

[Jasmine]

Thanks so much Cons. I really appreciate the info. I only want to bargain with the LL in good faith and get some type of agreement that works for both of us.

Here comes the big question...where you'll probably tell me to get an attorney. My sublet is just about up. I'm already in the apt. If the LL won't offer me some type of reasonable rent should I remain in the apt. and take my chances?Providing it's alright with the Prime tenant.

Thanks again,
J

[Cranky Tenant]

Am I correct in saying the the LL can add an additional .6% on to the increase? So for a ne 2year lease the without any renovations the maximum increase is around 20.6%

My understanding is that the LL can get a 6% increase for a 2 year lease so the total would be 26% not 20.6%

If you're on good terms with the prime tenant and can get the rent history, I'd recommend signing the lease. Then you can look into overcharges once the apartment is yours.

[Jasmine]

Oops, bad math.

Thanks,

J

[Cranky Tenant]

Looks like I overlooked the .6 per year increase, which might well bring it close to 40%

Whatever the numbers add up to, if you're already in the apartment it's better to sign the lease now and work out the math later.

[consigliere]

There seems to be a common misconception about the vacancy increase.
 
It is 18% for a one-year lease or 20% for a two-year lease. The renewal guideline increase is NOT added to the 18% or 20%.
 
If the apartment hasn't received a vacancy increase in eight years or more, 0.6% per year can be added for each year for which there hasn't been a vacancy increase.
 
And the landlord can include a monthly increase of 1/40 of the cost of improvements to a vacant apartment.