Q: My roommate and I moved to a two bedroom apartment in the East Village in September 2020 and paid $ 2,400 a month. Management recently told us that if our lease is renewed at the market price, our rent will increase to $ 3,600 per month. What can we do?
A: Last year New York rents fell to all-time lows as landlords sought to occupy vacancies from people who had fled the city. What you are now experiencing is the reality of how quickly the market has recovered in many neighborhoods, especially the East Village.
"This person rented this apartment at a time when the market was as bad as I've ever seen it," said Gary L. Malin, Corcoran's chief operating officer. "The market made a full 180."
This summer, the city is inundated with returning residents whose businesses are starting to call them back to the office. They compete for housing with newcomers coming to school and work. And with the expiry of the pandemic rental agreements, tenants like you are also re-entering the market, as landlords are raising rents back to the pre-pandemic level.
In July 2021, the market price for a two-bedroom room in the East Village was $ 3,690 per month, according to StreetEasy. So the chances are good that your landlord will stick to this new price. The landlord can increase the rent of an apartment in line with the market by this amount, but if it rises by more than 5 percent, the notice must be given: 30 days for tenants who have stayed in an apartment for less than a year with a rental contract of less than 12 months; 60 days for tenants who have lived in their apartment for one to two years; and 90 days for tenants who have lived there for more than two years. If you have not been informed in good time, inform the landlord to buy yourself more time.
Ultimately, you will either have to pay more for this apartment or look for a cheaper one. You have a couple of options. If you want to stay in the neighborhood, consider looking at three- or four-bedroom apartments and adding more roommates to cut your costs. If you want to keep your rent the way you are paying now, consider neighborhoods like Astoria, Bushwick, or Inwood where you can get a two-bedroom apartment for the same or even less than what you are currently paying .
Sign up here to receive weekly email updates on residential real estate news. Follow us on Twitter: @nytrealestate.