When it comes to renting an apartment in New York City, one of the first decisions you’ll need to make is whether to sign a month-to-month lease or an annual lease. Both options have their own set of benefits and drawbacks, and the right choice for you will depend on your individual circumstances. In this post, we’ll compare the pros and cons of month-to-month leases versus annual leases in NYC to help you make an informed decision.
IMPORTANT NOTE: An overwhelmingly amount of landlords in NYC do not allow “month to month” or “monthly” leases. Probably over 90% of landlords require a minimum of 12 month leases (annual leases). But on Leasebreak we have thousands of listings posted by landlords allowing leases of less than 12 months.
Pros of month-to-month leases:
- Flexibility: One of the biggest advantages of month-to-month leases is their flexibility. If you’re not sure how long you’ll be living in a particular location, or if you have a job that may require you to move on short notice, a month-to-month lease allows you to remain flexible. You can give your landlord 30 days’ notice to vacate the apartment, and you won’t be locked into a long-term commitment.
- Lower rent: In some cases (although not usually, see “cons” below), landlords may be willing to offer lower rent for month-to-month leases, as they try to fill in gaps between their “high demand” seasons, times when they know they can get higher rents for 12 month leases.
- Easier to get approved: Landlords may be more likely to approve a month-to-month lease if you have a less than perfect credit score or rental history. This is often the case because they will expect you to pay the entire term upfront. This can be a good option for those who may have trouble getting approved for a traditional annual lease. (But note that if you are a lister, we actually would suggest you vet shorter leases the same way you would vet longer leases).
Cons of month-to-month leases:
- Lack of security: One of the biggest drawbacks of month-to-month leases is the lack of security they offer. As a tenant, you don’t have the same level of protection as you would with an annual lease. Your landlord can raise the rent after each 30 day term expires, or ask you to leave with just 30 days’ notice, and you may have to scramble to find a new place to live if you’re not prepared.
- Higher rent: In most cases, landlords will charge higher rent for month-to-month leases to compensate for the added risk and lack of long-term commitment. This can make month-to-month leases more expensive in the long run compared to annual leases.
Pros of annual leases:
- Security: One of the main advantages of annual leases is the security they offer. As a tenant, you’ll have the peace of mind of knowing that you have a fixed place to live for a set period of time, and your landlord can’t raise the rent or ask you to leave without cause.
- Lower rent: In many cases, landlords will offer lower rent for annual leases compared to month-to-month leases. This can be a significant advantage if you’re planning on staying in your apartment for a longer period of time.
- Easier to budget: With an annual lease, you’ll know exactly how much your rent will be for the next year, which can make it easier to budget and plan your finances.
Cons of annual leases:
- Lack of flexibility: One of the main drawbacks of annual leases is the lack of flexibility they offer. If you need to move on short notice, you may be stuck paying rent for an apartment you’re no longer living in, or you may have to break your lease and face financial penalties. (But of course you can list your apartment on Leasebreak if you need to break your lease).
- Difficulty getting approved: In some cases, landlords may be more selective when it comes to approving annual leases, as they are committing to a longer-term relationship. This can be a disadvantage for those who have less than perfect credit or rental history. But as mentioned above we would suggest landlords vet shorter leases the same way they vet longer leases: very carefully.
In conclusion, both month-to-month leases and annual leases have their own set of pros and cons in New York City. If you value flexibility and don’t want to be locked into a long-term commitment, a month-to-month lease may be the right choice for you, despite it often costing more. On the other hand, if you want more security and are willing to commit to a longer-term arrangement with some cost savings, an annual lease may be the way to go. Ultimately, the right choice will depend on your individual circumstances and priorities.
It’s important to carefully consider all of the pros and cons of each type of lease before making a decision. Be sure to do your research and ask plenty of questions before signing a lease to ensure that you’re making the right choice for your needs and budget.
Please feel free to find thousands of shorter leases and “leasebreaks” on Leasebreak. Also, if you have more questions about renting in NYC don’t hesitate to see more articles by clicking here.