Rent in COVID-NYC
Hey all,
Sorry if I missed a similar thread, but with the Rona hitting everywhere, I notice rent prices have dramatically gone down in the city (and there are lots of deals to be had). My lease is up in March, but I've been considering doing a lease break to switch to an apartment with better value.
Would be very interested in hearing views of some of the RE guys on the NYC market; do you think rent is going to continue to drop on a go-forward, or do you see some degree of market stabilization in the next few Qs?
I dont think you'll realize any benefit for whatever the cost may be (security deposit?) to break your lease. Rents are certainly down but not "get an extra bedroom" down. You'll get plenty of deals in March.
Awesome - thanks. Spoke to my building today and they essentially told me that I can assign my lease to someone with no penalty (that is, if I can find someone). That said, I know there's a good amount of inventory on the market and my building (specifically), has comparable units for less.
Appreciate your feedback as it's helpful in me figuring out if it's even worth all the brain damage to find someone to take over my lease, pay for movers, etc.
Big thing to make sure you’re noticing is the rent deals being advertised are simply a reduction in the net effective rent, not the gross rent (what you actually pay). Gross rents are being held flat (landlords are usually required to do this), so unless you can negotiate the “free months” upfront or amortized across the entire lease, you’re still paying full price every month and you don’t see the benefit from these concessions until the end of the lease which is typically where most landlords place the free months. So its not as appealing as a straight rent decline. Some buildings are certainly doing that, but from what ive seen its mostly smaller non-institutional type of building owners, such as a walk up or something. Any huge high rise is following the net rent concession model. Its nefarious advertising really because you might be attracted to the $4,200 gross / $3,000 net offers you’re seeing when factoring in 2-3 free months, but dont forget that once renewal time comes your rent then becomes the gross rent. You dont get those free months in perpetuity every time you resign. As such, id imagine if people start snagging up these deals we will see huge turnover in 2021 as people are essentially moving into apartments they cant really afford and they turnover upon renewal. There is so much supply right now this absolutely has to change. Nobody is jumping out of their shoes to move back to Nyc early to pay the same rent as pre-covid and have to wait 1-2 years before receiving your “free months.” Maybe you guys are, but I certainly am not.
Solid points - and yeah, a lot of the titles are misleading re: you essentially pay gross (w/a few months free) as opposed to net effective/amortized for your term. I wasn't sure how the free months were structured, but you bring up a great point in that a lot of people are not going to be able to afford their places based on the schedule you outlined if they can't pay amortized net effective (which will likely just kick the can down the road regarding inventory/supply in a year or so).
Yeah also keep in mind that “flex 1 besroom” really means it’s a studio where you can hang up a partition in the living room to make a “bedroom.” A “flex 2 bedroom” is a 1 bedroom apartment with a large living room that can be divided into another bedroom. In all, NYC brokers and landlords tend to be real sleezy. They’ll do or say anything to get you to sign on the dotted line. So make sure you understand what you are getting yourself into before doing anything.
Has anyone had luck with getting concessions and/or a rental decrease on a renewal?
My current building is offering 2 mos. free for a new lease and I am looking to upgrade to a 2 bed. My rational is offering to sign a brand new 12 month lease (thus giving the LL 4-5 months extra term) but in return requesting a 1-month concession. Thoughts?
Yes, I just did this 2 months ago in DC not NYC but upgraded to a 2BR. Building was offering 1-1.5 months free for new leases, we asked for the termination/transfer fee to be waived, discounted rent (below listing) and 1.5 month concession. They agreed to everything but the 1.5 month concession (said that was for 24-month leases only) so we got 1-month. Seems to be typical in the market and most major cities (work in MF). They just want to keep people there or get new people in quickly even with discounts and concessions, especially the large buildings/companies.
Again, not NYC, but just got 2 months free up front (had to go 16 month term) and a $200/mo rent reduction throughout the term in Dallas. Somewhat surprised, as I didn't think the Class A buildings would be struggling as bad as they are. Figured there would have been a blood bath in Class B/C (probably is and I'm just not aware).
Voluptatem in sed ipsa ullam quas sed. Reprehenderit est ut nisi ad asperiores officiis aut. Dolores rem vel ut dolor molestiae. Sint rerum laboriosam aut qui. Vel distinctio aut provident et molestias. Reprehenderit rerum ut sit eos quia beatae eaque.
Quia ullam debitis labore est minima aliquam saepe. Suscipit excepturi earum voluptatem dolores ab possimus illum. Et quis sunt nulla quo cupiditate consequatur. Molestiae corrupti asperiores molestiae culpa et totam. Nobis est saepe quia sint.
Ad consequatur aut doloremque optio quidem nemo accusantium. Facere quasi libero sunt odit voluptatibus nemo et non. Aspernatur cumque accusamus dolorem architecto porro vel est. Culpa recusandae cum quis in. Eveniet aut quia possimus ad asperiores dicta et. Qui et harum dicta et provident.
Vel minus numquam ut ullam qui dolore. Totam repellat temporibus aperiam dicta rerum officia nesciunt. Sapiente dolorem minima quasi cupiditate reiciendis sit odio. Dolorum nobis voluptates dolores non incidunt debitis. Autem non autem sit ab et voluptatibus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...