Not everyone is drinking the Kool Aid that marketers at Stuy Town are mixing. That of no broker fees and a free month of rent. In response to our story about the housing complex advertising apartment deals on Spotify, one reader in the adjacent Peter Cooper Village decided to set the record straight.
From the inbox:
Stuy Town isn’t offering a free month’s rent because they are having trouble filling apartments, this offer is designed to turn over the apartment in a year and raise the market rate rent an additional 20%.
The free month of rent Stuy Town is offering, which used to be two free months, is divided by twelve months and the monthly rent is discounted for the year. For example, a one bedroom typically rents for $3,500 per month. Divide $3,500 by twelve and it comes out to roughly $291.66. Subtract $291.66 from $3,500, and the discounted monthly rent drops to $3,208.84.
When it’s time to renew the lease in a year, the rent jumps back to $3,500. The rent increase is based on this number. A typical increase is between 7% and 10%, making the new rent as high as $3,850, a $641.16 increase. The tenant moves out and Stuy Town is allowed to legally raise the rent on the apartment an additional 20%.