New York City the city that never sleeps – full of life and full of light! It is famous as the most competitive city in all aspect. The same verdict goes for the rental market, which is highly competitive, and the proprietors are attaining upper hands as the rates are tightened up even more over time. In NYC, there are plenty of apartments that are available for rent. Whereas, the abundant new apartment will be enlisted this year. It is indeed good news for the ones who are in search of a new rental apartment, as now landlords are also offering deals, which include a 2-year lease or 40% of the new lease.
Currently, the concessions (long term lease) trend is declining, which usually comes with a perk of 1-2 months of a free stay. This is a way to bluff the tenant to sign the lease without lowering the rent. According to the rental report of December of Douglas Elliman, the concession rate increased from 36 % to 44 % in Manhattan.
Due to the stable and competitive rental market in NYC, a revolutionary changed is noticed in the market that the landlords are agreeing on a certain rate or leasing the apartment for two years. As they don’t want to step in the process of searching for a tenant over and over again in a soft market. If the credential of the tenant is fine, then it is worthy of grabbing the chance of getting a fixed monthly hassle-free earning.
We can see various offers like getting a few months free on long lease in a more competitive area or peculiarly in the new constructions. Although this deal sounds good, it’s crucial to preclude yourself from scammers. Read on more below to get aware of the pros and cons of getting into more extended lease contracts:
Pros of a two-year lease:
When your application is approved for renting an apartment, you might get a choice in the lease terms of the apartment from your landlord. The choice may vary, but usually, its seen that the landlord offers a year or two leasing agreement. However, the two-year apartment lease will bound you with certain conditions but if you think that the apartment is perfect to call it as a HOME SWEET HOME, then you will enjoy the boons of long term, which include;
Circumventing from an obligatory increase in rent each year which ranges from 1 – 1.5 %
No need to worry about the inflation and rising rental rates in the market, as you have secured your feet for 24 months
Cons of a two-year lease:
The major drawback of signing a 2-year lease program is that you are bounded to the obligated commitment. Ask the following question to yourself before getting into the long-term lease.
What if you like the apartment but the noisy neighbor or distance of home and office is becoming a problem?
You lost the job and out of cash, how will you bare the expenses?
You got a new job, which is far distant to your home or the new company is generous to provide you accommodation.
It is better to make a wise decision as you should know that breaking the lease would cost you hard (a few months’ rents or more). Making a prior legal discussion about breaking the lease with your landlord or the middle real estate company is a shrewd option.
Ask, if you want a two-year lease!
If you have reviewed the pros and cons of sighing a pact of a two-year lease and still wants to avail one, you should ask your future landlord for it bluntly. But what if he is not in favor to fulfill your demand at the moment? This may be due to the reason that majority thrives towards availing a 15-18 months lease for the sake convenience. Well, for this, you must hold on and wait until the landlord gives you some leverage and signs a deal with you because they are habitual of doing everything to get a tenant in place.
After all, they are craving for some extra bucks on both, the lease and the distortion of an agreement.