Ask Elliman: Rental Concessions in New York City

According to the latest Douglas Elliman Rental Report for New York City , landlord concessions are at an all time high as renters have greater choice and stronger data on their side. So what exactly is a concession, and what should renters know about them as they navigate the market? Elliman Insider sat down with three of Douglas Elliman’s top rental agents in New York City– Melinda Sicari , Cindy Rachlin and Diana Hermanowski –to dive a bit deeper into the types of concessions consumers can expect in today’s market and if they are negotiable. Here’s what they had to say: Elliman Insider : How are concessions currently affecting the New York City rental market? Melinda Sicari: From the renter perspective, concessions are offering the consumer the ability to upgrade to “bigger and better” for the same price, or less than they were previously paying. Concessions also assist in mitigating total upfront cost for the renter. From the landlord perspective, concessions help stabilize pricing while making the leasing process easier for the consumer. This ultimately decreases days on market and vacancy rate. Cindy Rachlin: At one time, a landlord offering concessions (especially during the rental season of May through October) was the exception and not the rule. Offering concessions is the new normal and the only way to attract a tenant.  A landlord must offer concessions. Diana Hermanowski: There are a lot of vacant apartments in New York City right now, and it’s all about educating landlords on the change and finding the right balance for consumers. That’s where concessions come into play. EI : What types of concessions are you seeing? DH: I am seeing owners giving one or 2 months free for a 13 month lease. Owners are also considering taking pets, which they never wanted in the past. MS: On average I am seeing 2 months free on a 12-month lease. The larger portfolios with high vacancy are offering 4 free on 24 months with most landlords covering the broker fee. In condosco-ops, landlords are also offering to cover the building fees. In a few cases on non-rent stabilized buildings, landlords are allowing tenants to pay the amortized rent. CR : I’m seeing all kinds of concessions in the market. 1-3 months free rent on a 12-month lease, gift cards to tenants from $100-$1000, paying for moving costs and eliminating pet fees are a few of the more popular. EI:  Are concessions negotiable? CR: Everything is negotiable; prices and concessions. DH: Depending on the landlord and the situation, anything is possible. MS : Some concessions are negotiable (i.e. longer term leases with deeper concessions for those willing to commit to 12+ months.) Concessions are being utilized more frequently than reducing gross rents. Find your next New York City home