What Are Lease Duration and Renewal Options in NYC?

This city has plenty of rules about how landlords should behave and what kinds of lease agreements are offered to tenants. Depending on what kind of property you rent, there are specific regulations about the lease duration and renewal options available to you. If you think that your landlord is not following these rules, a New York City residential lease dispute lawyer from our firm might be able to help.

What is the Typical Lease Duration for a Rent-Stabilized Apartment?

Rent-stabilized apartments tend to last one or two years. Then the lease can be renewed, possibly with a small increase that is within the limits set by the Rent Guidelines Board. Technically, a tenant is not supposed to stay past the end of a lease and become a month-to-month tenant in a stabilized unit.

What is the Lease Duration For Apartments That Aren’t Rent-Stablized?

The lease duration for apartments that are not affected by rent stabilization rules is usually a year. This is because a landlord will often take the opportunity to raise the rent each year and make tenants sign a new agreement. If a landlord is willing to lock in a lower rent for longer, like a two-year period, then that can mean a bigger rent increase once it comes time to renew.

Is There a Longer Lease Duration For Commercial Properties?

Commercial properties tend to have a longer lease duration. It’s not uncommon for a commercial lease to last five years or more. Even a “short” commercial lease is likely to last three years.

Because of this longer lease duration, some renters want additional protections baked into their lease agreements. What happens if your business fails? What happens if a space that is better suited to your company opens up? Lots of commercial renters value some flexibility, so they may try to negotiate a clause where they can terminate their rental agreement early or buy it out.

How Are Lease Renewals Handled in Different Types of Properties?

In a rent-stabilized apartment, offering a renewal is basically a necessity. Landlords must give notice about the terms of a renewal between 150 and 90 days before the lease expires. Then tenants have 60 days to respond. A tenant in an apartment without rent stabilization does not have a right to renewal unless their lease contains a clause that says that they can renew. Then they must give the landlord 30 days notice if they do not want to renew.

Now, NYC landlords are not actually required to offer a lease renewal when renting out a commercial property. However, it may be possible to negotiate a renewal clause when you make the initial lease. Then you should be able to extend your lease once the original term expires. If you are doing well in this space, both parties obviously would benefit from your business continuing to operate there.

Schedule Your Consultation

If you think that your landlord is not following the rules concerning lease duration and renewal options, we may be able to help. Contact Robert Rosenblatt & Associates to schedule a consultation today.