The following info relates to renewal leases for market rate and rent stabilized tenants. We have seen press reports of NYC tenants negotiating with landlords for rent abatements, rent reductions or lease renewal rate modifications. GPTA has no special insight into how COVID-19 will affect the NYC rental market, but historically during recessions, apartment rents go down, not up. Whether COVID-19 causes a recession is anyone’s guess right now. Depending on how a landlord views the COVID-19 economic impact, the landlord might be prepared to negotiate to keep tenants.
Please note that GPTA does not provide legal advice, so if you need legal advice, please contact a lawyer.
We wish we could provide more concrete information. Please check back here for periodic updates.
Thanks,
GPTA Executive Committee
Market Rate Tenants
We are aware that market-rate tenants have been offered renewal leases at varying levels of rent increases.
GPTA is continuing to advocate for an extension of the current rent stabilization agreement so that it would cover all Gateway tenants. As of now, however, no such extension agreement has been reached, and there is no assurance that we will be successful in extending rent stabilization protections to currently-market-rate tenants. GPTA is also advocating for a COVID-19 freeze on rent increases for at least 4 months. As with rent stabilization, we can make no assurances that we will be successful in obtaining a COVID-19 freeze.
Tenants facing lease renewals should be mindful of the deadline specified in the renewal offer for acceptance. Typically, Gateway Management has required a response to its renewal offers within 30 days of the tenant’s receipt of the offer, but you should check your specific offer to make sure you understand the response deadline. You should keep a note of the date you received the offer. If your renewal offer cover letter is dated significantly earlier than when you received the offer, you may also want to save the envelope in which you received the offer if it bears a dated postmark.
Rent Stabilized Tenants
We are aware that currently-stabilized tenants with leases expiring after June 30 (when the current rent stabilization agreement expires) are being offered renewals at rent increases greater than that provided in the rent stabilization guidelines.
GPTA is continuing to work with the Battery Park City Authority and our elected officials to secure an extension of the rent stabilization agreement. As of now, however, no such extension agreement has been reached, and, although we are optimistic, there is no assurance that we will be successful in extending rent stabilization protections. GPTA is also advocating for a COVID-19 freeze on rent increases for at least 4 months. As with rent stabilization, we can make no assurances that we will be successful in obtaining a COVID-19 freeze.
Tenants facing lease renewals should be mindful of the deadline specified in the renewal offer for acceptance. Typically, Gateway Management has required a response to its renewal offers within 30 days of the tenant’s receipt of the offer, but you should check your specific offer to make sure you understand the response deadline. You should keep a note of the date you received the offer. If your renewal offer cover letter is dated significantly earlier than when you received the offer, you may also want to save the envelope in which you received the offer if it bears a dated postmark.