If you’re nervous, you’re correct. You have three choices as a market-rate apartment renter: your lease will be renewed at the same rent, at a higher rent, or it won’t be renewed at all.
Because of New York’s skyrocketing costs, many renters should anticipate a rise in their monthly rent when they renew their lease.
Tenant notice is no longer optional
Tenant notice is no longer optional under the 2019 Housing Stability & Tenant Protection Act (HSTPA), which mandates that landlords notify renters in advance of rent increases of at least five percent. Tenants must also get written notice of their intention to terminate a lease. Specifically:
Previously, a 30-day notice was required if the renter had been in the apartment for less than a year or had not signed a one-year contract.
For renters who have been in an apartment for more than a year, but less than two years, or who have a one-year lease, a 60-day notice is necessary.
A 90-day notice is required for tenants who have been in a unit for more than two years or have a two-year lease.
There was a 27.7 percent rise in the average net effective monthly rent in Manhattan in February, according to the Elliman Report. In an effort to compete with the market, many landlords are raising rates for current tenants by 30 percent or more when they renew their leases.
Because their leases are not being extended, several tenants have not gotten notifications.
No new lease
Most likely, in the event that no new lease is offered and signed before the present lease expires, all terms except the term will stay in place until a new lease is offered and signed. This clause will most likely be found if you re-read your lease.
Because of this, you will be held to the same conditions as previously. However, if the landlord gives you a sufficient amount of time to depart, they may.
There are some renters who refuse to pay their rent and claim to be unable to afford it. It occurs all the time, but is it really worth it if your landlord is relentless in his pursuit of you? If he goes against the law in order to evict you?
Many landlords choose not to renew
According to David Mendivil, a Corcoran broker, in today’s competitive market, many landlords choose not to renew their present renters in order to raise the rent and relist it.
If you rent from a major management business, renewal reminders are often given far in advance, Mendivil explains. Smaller landlords are more likely to be casual, so if you are renting from a mom-and-pop-owned property, your renewal notification may be just late.
Negotiations may get off to a faster start if someone takes the initiative. Do you need some advice on how to phrase a situation? To help you in your negotiations, here are three examples of emails you might use. Prior to the end of your lease, you may be able to save money by getting in touch with Mendivil before the rent increases.
What exactly is “renewing” a lease?
It is called a “initial” lease when a person moves into a rent-stabilized unit for the first time. Besides the amount of the rent, the original lease may include provisions about pets, air conditioners, late fines, washing machines, and so on. After that first lease, the renter will get a rent-stabilized renewal lease every one or two years. If you’d like to view an example, go here.) The renewal lease is far shorter than the original agreement, being just one page long (though it may have some riders attached).
Legal precedent dictates that the terms of a lease renewal cannot differ materially from those of the original agreement. This means that landlords can’t lawfully add a “no pets” clause to a renewal lease if the first contract didn’t include pets.
As a market rate renter, you also have rights and responsibilities that you should be aware of. If your rent is going increased by more than 5% or if your lease isn’t going to be renewed, your landlord has to notify you in advance. If you’ve lived there for less than a year, you must be given 30 days notice, 60 days notice for a year or more, and 90 days notice for more than two years.
When does the landlord need to send the renter a renewal notice?
Between 150 and 90 days before to the expiration of the existing lease, the landlord must give the renewal lease to the tenant, either by mail or in person. The tenant has 60 days to react to the “offer” of a renewed lease that was sent.
Even if the first lease expires on 12/31/17, the landlord cannot deliver a renewal lease before August 1 or after October 1 of the year in which that lease expires.
As a result, you have the right to call out any inconsistencies in your notification that may have occurred. A few months may be possible for you to remain, depending on the amount of time you’ve lived in the flat and the length of time it takes the landlord to start afresh. You will become a month-to-month renter throughout this time.
Your landlord may ask you to pay the difference
Steven Kirkpatrick, a partner at Romer Debbas, explains that during that period, your landlord may ask you to pay the difference between your previous rate and the new. However, if you don’t agree, your lease may not be renewed.
If you live in a rent-stabilized unit, you may only raise your rent by a certain percentage.
Lease renewal is available to rent-stabilized renters, who may select between one and two years of renewal.