Lease renewals and COVID-19

[Lyle Cooper]

I have a tenant in a high end rental in Manhattan.

The lease renewal is 3 months out.

I’m new to the landlording business and I have some questions.

The tenants are a VERY well to do professional couple.

Should I email the tenant and ask if he wants to renew the lease or just send him a lease renewal?

• - If I email the couple, I give them an opportunity to say yes but we want a reduction in rent or no increase at all.
• - If I send a lease renewal, it feels more cut and dry. They either sign it and return it. Or they don’t.

Rental increase: Should I increase the rent by the customary 3%? Or just leave it the same. Pre COVID-19, I was planning on increasing the rent by 3%. Now I’m not so sure it’s a smart move.

I know there’s not cut and dry solution in a situation like this. Interested in hearing thoughts on how others are handling this.

Thanks