Can I do a 2 year lease in New Jersey?

Question

Nathan Gesner · Answer

A better question is, should you?

In my experience, the majority of leases longer than one year will be broken. Tenants can't project relationships, work, or other factors that far out. Tenants like to ask for a two-year lease because it entices you to rent to them instead of someone only looking for a one-year lease and because many Landlords offer a discount. Don't fall victim!

One year lease, renew after a year and include a mandatory increase, even if it's only 3%.

Daniel Gonzalez · Answer

@Nicholas Krauss As everyone has mentioned you can do a 2-year lease no problem. A few of my friends entered 2-year leases on new construction and it was allowable. If this is for residential 2 is a bit uncommon. You might be able to include escalation if they enter a 2-year lease. I worked for an investor in NYC who had escalation clauses in all his leases if it was longer than 1 year. Double check that for NJ though. Lastly, if it's for commercial you can definitely have a lease for two years or more. My family has a small commercial space that is on a 10-year lease. It is possible, just depends on whether you want to have one tenant committed for that long.

Darren Sager · Answer

@Nicholas Krauss you're allowed to have a lease in NJ for as long as you're comfortable with from my understanding.  I usually do one year leases however I will do a 2 year and impose increases in the monthly rental rate (I just did).  I'm not a fan of keeping people at the same rate for an extended time.  Taxes and insurance rates usually increase every year, as does inflation, so if you keep people at the same rate you're losing $$ in the 2nd year and beyond.   Even a small increase, like $25 a month is still important to impose.  Issues usually occur when investors have been keeping rates below market for awhile suddenly try to impose an increase to "make up for the increases they didn't put in effect" over a time period .  Tenants will get angered more easily, because you've been "nice" to them.   They'll expect their rents should not go up.  So, no matter what, impose an increase every year.

Shawn Mcenteer · Answer

@Nicholas Krauss yes you can.  Are you looking to enter in 2 year lease or have possible tenants requesting 2 years.

Nicholas Krauss · Answer

Thanks Nathan and Allen for the reply this helped!

Allan Szlafrok · Answer

@Nicholas Krauss

https://www.state.nj.us/dca/divisions/codes/publications/pdf_lti/lease.pdf

If I’m reading this right the answer is yes.

Can I do a 2 year lease in New Jersey?

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