Change in Rents

You must be renting a cave!

No, actually, there are plenty of deals in really nice buildings out there. My current rent is $4,500 & change, I asked them to lower it to $4,400 for a 2-year lease.

The days of overpriced apartments are going.

you ASKED...did they say yes?

This is NYC, apartments will always be overpriced.

I only just asked today, by mail. But the fact that they're requesting an extension on notice to 60 days indicates that they're worried they won't be able to find a new renter quickly. I'm a known quantity to them, and pay every month.

Housing has NOT always been expensive in Manhattan. Only since 2003. Before that, it was properly priced to incomes.

Any reason you picked 3.3%? That isn't a sarcastic question, just curious if that number had any significance.

Why would you sign a two year lease when you know property prices will be coming down 30-40%? I thought you wanted to buy?

Juice, 3.3% is $100. Duh

Now Steve, if you really had BALLS and conviction, you would have offered $4000. $100 off is like you are just trying to prove a point so you can rant on streeteasy how smart you are.

(ps, $100 per month is 833 words per month or 10,000 words per year)

Oh I have the answers! Because I know what other people in the building are paying, which is why I offered what I did.

"if you really had BALLS and conviction, you would have offered $4000"

No, I don't need to. Because I can walk out any time and I limit my exposure to $4,400. But if I bought at Chelsea Stratus my exposure would be on the order of $300,000. They wouldn't agree to $4,000 (though I could get it) so if I see in a year that rents are $4,000, and I'm paying $4,400, I just say, "Hey, drop my rent or I'll walk. In the long-term, I'll make money, you'll lose. You decide."

Did no one here ever take a course in bargaining?

You don't know what the law is.fd

$100 isn't 3.3% of $4,500; it's 2.2%.

I think that's a good move. At $4,000 they might just tell you to move out. $4,400 gives you a good chance to get a slight improvement or keep the same rent.

Very interesting. Thanks, Steve

AnneC = owned.

Hey stevejhx I'm with you on this one. Afterall look at all the money we are ahead by putting all our savings that we get from renting and placing it in high producing appreciating investments like commodities, stock market, mutual funds, emerging growth funds in other countries.. Gee I'm sure glad I didn't get stuck with an apt in the Manhattan and having those monthly payments go toward the principle. What fun it is having to pack and and move every year depending on what my landlord decides.

I don't understand the logic where stevejhx says he wouldn't offer $4000.

houser: "principal," not "principle."

You're right, the market is in turmoil right now - because housing is in turmoil. The stock market goes up and down very quickly. Real estate, once it's down, stays down.

If you really think with all this market turmoil and the impending demise of LEH and WaMu, that Manhattan real estate will be unaffected, you're crazy.

FYI the father of a friend of mine is a commercial real estate broker and I was talking to him last night about some big developments underway in Manhattan: they are completely changing all the floorplans, all the amenities, and figuring out a way to turn luxury condos into rental units. We're talking not just a few buildings, but thousands of units under construction.

ClintonB, because right now they wouldn't accept such an offer since they would still get a higher one, albeit with ten people in the apartment. My goal is to get a modest reduction or keep the rent the same - if I need to renegotiate next year and I see rents are lower, I'll renegotiate the two-year lease. If I leave my total liability is limited to the down payment. Unlike houser, who when his units lose 30% in value will be stuck with that loss for a very long time, indeed.

Does this mean that the developers are expecting sales prices to be less than 12x annual rents?

Before I get accused of ignorance, I want to point out that I'm joking. The economics (interest rates, taxes, etc.) for a business are different from individuals. I would be curious to know what, stevejhx, you would consider the break-even rent to sales ratio for a developer to decide if they should sell or rent out their units.

People always seem to forget the equation has two sides. The multiplier can change (12 x rent or 20x rent) but the rent can change too, and here in NY they can go down as well as up. The only place they don't go down is in under-market rents in rent-stabilized apartments.

I applaud your move Steve, im very curious to see how the managing agent reacts. I personally think that somebodies ego will get in the way of common sense and they will tell you to take a walk but we shall see. Please keep us posted.

Yep we all would love to watch stevejhx pack up all his belongings. Now get ready to get your mail address changed. Please do notify all that you are no longer living at this location because your landlord wouldn't agree to lower you rent for the extra 100 bucks. How bout calling the moving company or are are you going call you beer buddies and have em move your bed, furnishings and dirty sheets. Are you going to rent a u haul to do this or just a moving company. Do you have to change your tel #, cable service electricity and lets not forget notifying all your relatives that you are moving into another rental unit just so you can save a few bucks. This must be great advice for a a couple with kids. Soudns like a plan to me. Ah yes let's not forget all the money you are saving on your rental and putting it to goo work in the emerging growth funds in Latin America. Yup you sure are the genius stevejhx. Everyone should listen to you.

Where do you buy the cardboard boxes and bubble rap stevejhx. Can you negotiate a deal on that and a deal on someone who has to pack that year over year as you negotiate lower rents.

So, what happened?