I got a big rent increase with my lease renewal. Can I negotiate?
- You may be able to push back against a rent increase under New York’s Good Cause eviction law
- The average NYC rent increase was just 3 percent in June, compared to 12.1 percent in June 2023
Many market-rate renters gained a new way to challenge high rent increases this year through New York’s Good Cause eviction law.
iStock
I just received my lease renewal and my landlord wants to raise my rent by 10 percent. I'm an excellent tenant and have always paid my rent on time. Can I negotiate my new rent?
You can try to negotiate a smaller rent increase with your landlord and you may have more leverage when doing so, given the current rental market and the state’s newly passed Good Cause eviction law, according to our experts.
New York City tenants caught a break this summer: the average NYC rent increase was just 3 percent in June, compared to an average of 12.1 percent in the same month last year, according to an openigloo survey of more than 3,000 renters. And median rents for new leases in Manhattan and Brooklyn dropped slightly in August, bringing renters some much-needed relief.
Smaller rent increases means your landlord has an incentive to keep you in your unit. If you do move, your landlord would be obligated to re-paint the apartment, make other small repairs, and re-list and market the unit, said Dennis R. Hughes, a broker at Corcoran. All of that costs time and money, and your landlord may prefer to accept a smaller rent increase to avoid this hassle.
[Editor's note: A previous version of the article ran in March 2022. We are presenting it again with updated information for September 2024.]
But before you reach out to your landlord with a counter offer, you should check to see if you’re protected by New York’s Good Cause eviction law by looking up your address on the apartment review platform openigloo. Good Cause eviction requires a landlord to justify raising a tenant’s rent by more than 8.82 percent this year. If you are covered under the law, you’ll have more leverage to negotiate a rent increase below the 10 percent hike your landlord offered.
Looking for a more affordable rental? Or maybe a landlord who is flexible about guarantors, pets, or "flexing" a space with temporary walls? Put your search into the capable hands of The Agency, a tech-savvy real estate brokerage founded by a pair of Yale grads in response to the frustrating apartment-search experiences of classmates and colleagues. The Agency will charge a broker's fee of 10 percent of a year's rent on open listings instead of the usual 12 to 15 percent if you sign up here. Bonus: The agents at The Agency are a delight to deal with.
Remind your landlord of your history
To kick off the negotiations, you’ll have to contact your landlord and explain that you would like a lower rent increase. (Or, if you’re covered by Good Cause, you should tell your landlord you’re willing to pay at or below the legal threshold this year of 8.82 percent.)
It can help to remind your landlord of your history as a respectful tenant, Hughes said. They may find it less of a headache to accept a lower rent increase than to take their chances with a new and unknown tenant.
"Let him or her know that you are not comfortable with a 10 percent increase, and add that you have been an excellent tenant who pays the rent on time,” Hughes said. “You are respectful of the property, you enjoy living in the apartment, and you hope to stay on as a good tenant.”
If there are any issues in your building—such as broken appliances, pests, or other problems—you could mention them to your landlord as a reason for a more modest rent increase.
"A tenant can certainly write to management and have one’s concerns on record, especially if there are issues with the building or its management," said Gordon Roberts, a broker at Sotheby's International Realty.
Consider your options
Even if you live in a professionally-managed property, you may have more power to negotiate because you may be able to find a better deal elsewhere, Roberts said.
“If presented with an unreasonable rent increase, they may be more inclined to move on and try the newest building with the coolest features, which may also offer discount perks to new residents,” Roberts said. “In turn, landlords may be more motivated to retain existing tenants.”
In that case, it's worth a look around the neighborhood to see if there are more appealing options for you as a renter.
“As a renter, you should always be prepared to vote with your feet, and occasionally browse the rental market around you to stay informed,” Roberts said.
—Earlier versions of this article contained reporting and writing by Alanna Schubach.
Trouble at home? Get your NYC apartment-dweller questions answered by an expert. Send your questions to [email protected].
You Might Also Like
