Can I Sign a Two Year Lease in NYC?
Signing a two year lease in NYC is not impossible. However, you’d be surprised how rare it is. If a tenant wants to stay more than one year, then what’s more common is for tenants to negotiate at the lease signing an “option” for a second year.
While most landlords would agree to an “option”, they would likely want an increase in rent as well. Further, they may add a clause stating you would need to be a good tenant in the first year for them to agree to this second year option.
So, signing for an option for the second year is often quite different than a two year lease.
In other words, unless you’re in a rent-stabilized apartment (basically apartments found in old buildings), you may rarely get the chance to sign a pure two year lease.
NOTE: To search for NYC apartments go to frele.com (free service). Or, click for more rental tips
Why are Two Year Leases So Uncommon?
It won’t save you money. First off, you would probably expect a discount on your monthly rent if you signed a two year lease, right? Unfortunately, it’s unlikely that you would get a discount. In fact, NYC landlords would often expect a higher rent for a two year lease because they know the rent generally increases each year in NYC.
The rare landlord who would even agree to a straight up two year lease may even negotiate an automatic “step up” rate for the second year.
You might change your mind. New Yorkers are very transient. Perhaps it should be you who does not want the two year lease. Not a lot of renters want to sign a two year lease upfront because they are not convinced they will want to stay in the same apartment two years from now. They may move out of NYC, or try a new neighborhood. Plus, renters have little incentive to sign a two year lease if they’re not even getting a discount.
This is why renters often conclude it would be best to renegotiate the second year when the first year is about to end as opposed to signing a two year lease. We’ve got tips on when to give renewal notice to your landlord and here are tips on how to negotiate with your landlord after the first year.
Landlords are usually fine with waiting until the first year ends before signing on for a second year. Landlords know moving is a huge hassle, especially in NYC. If they wait long enough, they might be able to get you to renew your lease for a higher rate.
Before agreeing to second year, landlords want to know if you are a good tenant. NYC laws favor tenants over landlords. In order to protect themselves, landlords often want to ensure that tenants are responsible before offering them a two year lease.
For many landlords, the first year gives them enough time to reevaluate you and decide whether to offer you renewal or not. Take note that if you have a rent-stabilized apartment, the landlord has practically no choice but to offer you a one or two year lease renewal. So this statement only applies to “market rate” apartments.
The chances of you signing a two year lease (or more) are undoubtedly slim. But it’s not like you will get much out of it anyway. This is why it is probably better anyway for you to sign a one year lease. As you come close to the end of your lease term, you can decide if you’d like to renew your lease for another year.
For more NYC rental tips, please go to frele.com/learn.
This article was written by:
Phil Horigan, NYC Real Estate Veteran
Founder, Frēlē, the free and honest NYC rental marketplace
Producer, Phil’s NYC Rental Tips [YouTube Channel]
Blogger: flowfreely.com
Instagram: @philiphorigan
Phil has been a licensed NYC real estate agent since 2004 working for some of the top real estate brokerage firms in the industry. He founded Leasebreak.com in 2013, and Frēlē in 2017. Frēlē and Leasebreak are free and transparent rental marketplaces to search for or post apartments for rent in NYC
Go to frele.com to search for NYC apartments (free service).