By: Jill Urban for NY 1.
Last year, Tyler Fishback rented a new apartment in Midtown, and with all the concessions that existed a year ago, he got a great deal. But now when his lease came up for renewal, he got a dose of reality.
“It is shocking to see numbers jump like that, especially for someone who is new to the city,” Fishback says. “I obviously don’t know what the New York City real estate game is like, but as a renter who is new, who experienced an unbelievable deal coming here, it was shocking for me to be faced with those numbers.”
Fishback is not alone. A lot of renters are finding the renters’ market has shifted back to the landlords’ court, and gone are the days of months of free rent, free amenities, and no brokers’ fees.
Fishback’s broker, Gus Waite of the Real Estate Group of New York, says he has a lot of clients in the same boat.
“They’re taking a hit, because in their mind they are paying $2,500, even though their legal rent is $3,000,” Waite says. “They go to renew and they think their rent is being raised to $2,800 or $3,000, but in reality the free months are just being taken away.”
Fishback and his roommate looked at 18 apartments and found there were no deals to be had. So Waite advised him to just stay put.
“If you like where you live – stay,” says Fishback. “Because at the end of the day, with the time factor, the moving fees, the rates not going down and the broker fee, you’re better off staying where you are.”
Some landlords agree. Seth Rosner is a managing director for Nancy Packes Inc., a company that manages leasing for several buildings in the city. He says tenants probably have more wiggle room on a renewal.
“If it’s an existing resident with good track record, it’s to the owners benefit to keep that resident in place,” he says. “They avoid down time and they avoid turn costs, so there’s maybe a little more flexibility on a renewal offer than for someone who is coming into the market and who has never lived in the apartment before. There is enough demand from outside market that an apartment can be leased without substantial downtime, so from the outside market, the asking price is the asking price.”
In the end, Fishback and his roommate resigned their lease, with the hope that next year’s renewal won’t leave them at a loss again.