By former Assemblymember Steven Sanders
With all the changes made last month by the State Legislature in tenant protections and rent regulations, the nine-member New York City Rent Guidelines Board (RGB) appointed by the mayor remains intact. That is the entity which sets rent increases for leases expiring in any given year.
For hundreds of thousands of tenants facing lease renewals between October 1, 2019, through September 30, 2020, the RGB has set the increases at 1.5% for a one-year lease renewal and 2.5% for a two-year lease renewal.
The question for tenants is, which one is best? It’s all about short-term and long-term dollars and cents. But it is not that simple.
To some extent clairvoyance is required, but that function does not appear on any calculator. What do I mean?
One thing is a certainty: you will save money in the first year if you opt for a one year renewal. But what about the following year? Well, if the guidelines remain the same next year, then a tenant will be spending more money in the second year if they opt for consecutive one-year renewals as opposed to a two-year lease renewal at 2.5%.