What is the appropriate year two increase for a 1 year lease with option to renew?

ChrisL, in this environment... why would you lock yourself in? You got LL by the ballz.. you think he/she want to go thru the whole "new" tenant issue w/ coop when you are just there and saying I'll stay for same or 10% off?

trust me, the rental mkt is going NOWHERE. You've got more power than a chick w/ boobs in a men's only correctional facility.

I agree. Just tell them you want an option to renew at the same rate for an additional year. They may complain but no way are they going to let you walk away over that.

I think you guys are missing a crucial point: the option BELONGS TO THE RENTER. It's not PUT where the Landlord gets to decide whether or not the tenant HAS to stay at that rent, it's an option for the tenant at a GUARANTEED rent. in other words, it's the CEILING on the renewal. If rents go up, the tenant can still exercise this option to renew at BELOW market, but the tenant doesn't HAVE to renew. The tenant has the right to say "I want to stay, but rents have continued to go down so I want it for less", whereas the Landlord CAN NOT say "rents have gone up so I want more. So, as with any "option" it should either be paid for (do they give away stock option for free? and I'm not talking about when it's compensation to employees as a bonus). How about if there were NO PRICE? To who's benefit would that be? The Landlord's, not the tenants. A fixed price renewal AT ANY PRICE is to the benefit of the tenant, not the Landlord. If you want a guaranteed low rent for 2 years, sign a 2 year lease now! Otherwise, for AN OPTION (a free one), the increase SHOULD be greater than "expected" rent as a result.

NB: re:UES_Buyer's comment: if you think about it, this is really the same thing I am saying, it's just that if you think the expected increase is a negative number (like w67 thinks and a lot of others do) then "zero" is STILL greater than that expectation. If rents actually go down, renewing at the same rent is still overpaying.

Oh dear, people are so quick to repeat their well worn script that they miss the point as 30yrs and I already pointed out:

"It is an option so if rents do drop further then you can negotiate again for the 2nd year."