NYC Lease Renewal

I just went through my first rent renewal process and I couldn't have done it without the help of friends. So before I even tell the story I want to thank Poppa K, Skizzle and German Girl.

First the back story. When I moved to NYC in January of 2006 I had challenges many people do not have. Most people move to NYC after college, somewhere in their early twenties, and they don't have any or a lot of furniture. So they can just about pick any nice apt and furnish it once they move. I moved to NYC after owning a home in ATL. And even after selling off some of my furniture I still had a lot of stuff. So SPACE was a HUGE challenge for me. I won't do a full recap you can see the blog I wrote in 2006 on the search and when I actually found my apt.

Fastforward to January 2008 and it's time to renew my lease. Maybe I am naive but given the economy I was expecting my management company to offer me the same rent if I sign a two year lease or a slightly higher rent and of course a big increase if I only wanted a one year lease renewal. I was wrong on all fronts. The landlord wanted $175 more a month if I signed a two year lease and a $205 increase if I wanted a two year lease. First off, what happened to the incentive to stay. You would think the lower increase would be offered on the longer lease term. Second, $175 represents an 11% increase in rent. My first thought was, is that even legal. That's double the rate of inflation.

So I called the management company and they told me I needed to write a letter requesting a rent negotiation and to support my case. I did that but you know me, I always have a Plan B so I started apt searching. One Saturday I looked at 7 apts. They were all nice, newly renovated BUT they were all too small. They were all liveable and I would recommend them to anyone but they were too small for me.

Next I went to see a few brokers and they all told me the same thing. My building/complex is a rare gem given the amenities, size, cost and location. Let's start with size. I have a Junior 4 - 1 bedroom. I had no idea what that really meant. Basically I have a dining room area and a den/office area that most 1 bedrooms don't have. I'm like okay, so what's the big deal about that. According to these brokers the layout/size of a Junior 4 - 1 bedroom is so different from a standard 1 bedroom that I would need to find another Junior 4 or a 2 bedroom. I take for granted the amenities I have like doorman, elevator building, security guards, laundry in the building, parking in the back, dishwasher, microwave, air conditioners. I was considering moving to Brooklyn to Flatbush Gardens but no doorman, laundry was in a another building a block away, no dishwasher, no microwave, no air conditioners. You really can't beat Central Harlem. I live 2 blocks from the 2/3 trains. And to the east, 10 blocks away is Metro North, the 4, 5 and 6 trains. To the west about 5 blocks is the A, C and E trains. I'm in the middle of it all.

Last but not least, cost. One of my friends from college moved in to my apartment complex in November. He is paying $295 a month more than I pay in rent. If you go to the website for my complex they are charging almost market rate for apartments. A studio is $1,350, a 1 bedroom is $1,630, a 1 bedroom with terrace is $1,805, a Junior 4 is $1,920 and a 2 bedroom is $2,670. I can't believe it's that expensive in Harlem.

After doing some market research and looking at several apartments I just hoped and prayed my letter to management would work so I wouldn't have to move. I HATE moving and I LOVE my apartment. My letter was two pages long and included everything from the rate of inflation to reasons why they should continue to have me as a tenant to how renewing my lease at a lower rate was saving them money. The letter was GREAT and if anyone is going through a lease renewal negotiation, email me and I will send you a copy so you can adjust it for your needs. My letter was soooo good that I'm presenting at the next tenant's association meeting about how to negotiate a rent renewal.

I called on Friday and they said the decision letter was being mailed that afternoon and they couldn't tell me over the phone. Saturday when I got home from work the new paperwork was in the mail. They agreed to a $105 increase in rent (about 6% increase) a month if I signed a two year lease vs. the initial $205 increase in rent a month if I signed a two year lease. I signed, sent it back and it's all good. I'm staying in Harlem for another two years AND I can still stick to my new year's goals of downsizing on the side hustles and I'll still be able to afford my apt.