| Posted By |
Message |
Lichi
what what!?
Member since 5/05 4206 total posts
Name:
Lissette
|
Renewing apt lease
Can anyone explain how the renewal of the lease to an apt works - primarily how the increase in rent works?
For example, if the rent is being increased by 2.5% for one year, and 5% for two years, why would anyone choose to lose money by selecting two years - assuming that the increased rent %s stay the same year after year?
(i.e. $1000 = $25/1 year; $50/2 years
If renewed by year, total 1st yr rent = $12,300
Total 2nd year rent = $12607.50
Renewing by 1 yr leases for two years at 2.5% increase each year = $24,907.5
If renewed by in 2yr lease = $25,200
The lessee ends up losing almost $300 for signing on a two year lease.)
Please help my confusion!!!
|
Posted 4/8/06 11:17 AM  |
| |
|
Long Island Weddings
Long Island's Largest Bridal Resource |
itsbabytime
LIF Adult
Member since 11/05 9644 total posts
Name:
Me
|
Re: Renewing apt lease
That sounds strange to me. Our apartment gave us the option of one or two years. If we signed two years, our rent would be the same for the next two years, thus the benefit. I must say, I am SOOOO JEALOUS of your yearly rent...we live in NYC in a small 1 bedroom and are paying significantly more than double a year!
|
| Posted 4/8/06 11:19 AM |
| |
|
Lichi
what what!?
Member since 5/05 4206 total posts
Name:
Lissette
|
Re: Renewing apt lease
Posted by itsbabytime
That sounds strange to me. Our apartment gave us the option of one or two years. If we signed two years, our rent would be the same for the next two years, thus the benefit. I must say, I am SOOOO JEALOUS of your yearly rent...we live in NYC in a small 1 bedroom and are paying significantly more than double a year!
That's what I thought... how does signing a 2yr lease, at those rates, benefit us???
Oh, and PLEASE don't be jealous... that $1000/rent was as an example and was completely fictional! 
|
| Posted 4/8/06 11:24 AM |
| |
|
itsbabytime
LIF Adult
Member since 11/05 9644 total posts
Name:
Me
|
Re: Renewing apt lease
OMG i am  right now! Only in NY!!!!
|
| Posted 4/8/06 11:26 AM |
| |
|
nov04libride
big brother <3
Member since 5/05 14672 total posts
Name:
Me
|
Re: Renewing apt lease
The only thing I can think of is maybe you won't have the option to renew after 1 year. Sometimes they like to have new tenants coming in with a higher rent, so each year they will be paying more. Continuing tenants have a lower initial rent getting added on to each year.
|
| Posted 4/8/06 11:29 AM |
| |
|
Karen
Just chillin'!!
Member since 1/06 9690 total posts
Name:
Karen
|
Re: Renewing apt lease
I "think" if you take the 2 year, they are guaranteeing you the increase staying at 2.5%. If you only take 1 year, and then go to re-renew, the rate may have increased.
Your calc assumes the increase will stay at 2.5% - which I wouldn't bet on!
Message edited 4/8/2006 11:36:48 AM.
|
| Posted 4/8/06 11:36 AM |
| |
|
Lichi
what what!?
Member since 5/05 4206 total posts
Name:
Lissette
|
Re: Renewing apt lease
Posted by Karen
Your calc assumes the increase will stay at 2.5% - which I wouldn't bet on!
That's what I was wondering about... does the rate go up by the time the next lease renewal?
|
| Posted 4/8/06 2:09 PM |
| |
|
dpli
Daylight savings :)
Member since 5/05 13973 total posts
Name:
D
|
Re: Renewing apt lease
Posted by Lichi
Posted by Karen
Your calc assumes the increase will stay at 2.5% - which I wouldn't bet on!
That's what I was wondering about... does the rate go up by the time the next lease renewal?
Exactly - we are doing a 2 year lease because then you are "locking in" the 2nd year at the percent increase you are paying for the first year. DH has been doing this for a long time and he says the interest rate ALWAYS goes up higher the 2nd year than what was offered for the 1 year lease.
Message edited 4/8/2006 5:20:12 PM.
|
| Posted 4/8/06 5:12 PM |
| |
|
Lichi
what what!?
Member since 5/05 4206 total posts
Name:
Lissette
|
Re: Renewing apt lease
bump 
|
| Posted 4/10/06 1:42 PM |
| |
|
Heather617
My Babies
Member since 5/05 2566 total posts
Name:
Heather
|
Re: Renewing apt lease
The reason DH and chose a 2 year lease was because it would lock in our rent. The increase is higher for a two year because the one year rate would have increased twice by the time the two year comes up. I pay x amount and will pay this amount for two years. My rent would be the same if I signed a one year lease but at the end of the first year it would have increased so I would be paying more. I hope this wasn't too confusing.
|
| Posted 4/10/06 1:45 PM |
| |
|
MikesWife
Wanting...........
Member since 1/06 6887 total posts
Name:
Karen
|
Re: Renewing apt lease
Exactly. I think by law they can increase it up to 5% each year if your contract does not list a specific increase..................
|
| Posted 4/10/06 1:56 PM |
| |
|
