Renters Fight For Better Deals In Manhattan

During good economic times, people tend to spend more freely without looking carefully at the true cost of things, and we certainly have seen some of that behavior during the past few years. But lately, we seem to be in a period when people are ready to conserve rather than overspend. Even the superrich have become careful in their spending because, to many of them, the future appears bleak – or at least uncertain. The tendency toward more frugal spending is reflected in the current Manhattan apartment rental market, with renters fighting for better deals on rent prices.

For landlords, the objective is to maximize rental income while for renters of course, the objective is to minimize the amount they must spend on rent. The introduction of new and sometimes less expensive apartments into the Manhattan rental market is tipping the balance in favor of renters, who suddenly have more options. In newly leased apartments, there are reports of landlords granting concessions in almost 10% of new deals. There has been a substantial increase in the number of apartments in Manhattan compared to just a year ago. With more apartment inventory on the market, renters can now take to their heels and look elsewhere when their existing landlords are increasing rents. These new apartments might even be better than the existing ones. In addition, some apartment seekers are taking refuge in Brooklyn where leasing has increased dramatically due to the presence of newly constructed high-end towers, which are more affordable compared to those in Manhattan. Manhattan landlords have been forced to take all of this into consideration - and as a result, they are generally reducing their prices.

One way landlords are striking better deals with tenants is through discount deals consisting of an average 2% reduction in rent – an increase from the 1.1% average reduction in the previous year. Instead of leaving for alternatives, with these discount deals, tenants are negotiating and staying in many cases.

Please visit us at www.RubenPerezNYC.com