My luxury building doesn’t have the amenities it promised and the rent is going up by $500. Can we push back?
Last year we moved into a new luxury rental building that advertised lots of amenities, including a pool and parking garage, but they don’t exist and the super told me the building can’t structurally support them. Management recently sent us a lease renewal with a $500 rent hike. Can we push back on the increase?
In New York, it’s atypical for leases to make mention of amenities, but according to Altagracia Pierre-Outerbridge, attorney and founder of Outerbridge Law representing residential tenants, condo owners and landlords, that’s the first place to start to determine your options.
“You could actually be entitled to a reduction in rent if the lease explicitly states the provision of certain amenities but fails to provide them,” Pierre-Outerbridge said. “The building would be in breach of contract.”
Where to start
If your lease does include amenities, your rent would in theory apply toward amenities, and therefore should be reduced proportionally, since they aren’t provided in practice. “But pricing out the exact reduction in rent for the lack of amenities is another thing,” Pierre-Outerbridge said. “You may want to speak with a lawyer who has handled cases like this that can advise on whether the reduction offered to you is commensurate with the lacking amenities.”
Unfortunately, most leases do not mention building amenities, so in your case, negotiating a rent decrease would be an uphill battle.
“We’re seeing a lot more fraudulent advertising in the New York rental market,” Pierre-Outerbridge said. “AI is making it all the more frustrating. People will jump on a listing that looks great in photos and rush through the viewing so that they won’t lose out on the apartment without confirming the amenities that got their attention are there.”
Further, what your lease probably does include is what’s known as a merger clause. “Luxury buildings typically include a merger clause in their leases,” Pierre-Outerbridge said. “A merger clause basically excludes any other written or verbal agreements and limits the agreement to the contract itself. So a landlord is not beholden to any promises made in an oral conversation, or in this case, an online advertisement.”
Take it up a notch
That doesn’t mean you’re out of options. “Just because the contract isn’t on your side doesn’t mean you can’t fight the rent increase,” Pierre-Outerbridge said. “Talk to your neighbors. They are probably just as upset and facing similar rental increases, and you can make more noise as a collective.”
Pierre-Outerbridge suggested writing to your landlord on behalf of the group to try to negotiate a smaller increase. “It’s easy for a landlord to stiff-arm one person, but that gets harder and harder to do to a group of tenants,” Pierre-Outerbridge said. “It’s a shame how many landlords try to inflate their listings and refuse to deliver on their promises, so don’t be afraid to let them know exactly how angry you are.”
If you aren’t sure where to start, a lawyer can help you figure out the best way to present your argument to your landlord on behalf of you and your fellow tenants.
“In all likelihood, your goal is for your rent not to go up at all,” Pierre-Outerbridge said. “But a $500 monthly rent increase, especially when they’ve misrepresented the building, is ludicrous. By pushing back and getting others involved, you can begin to assert some leverage.”
Altagracia Pierre-Outerbridge, Esq. is the owner of Outerbridge Law P.C, focusing primarily on tenant representation. The firm represents all sides in landlord-tenant litigation and transactional matters such as month-to-month holdovers, nuisance cases, licensee cases, harassment claims, repair cases, tenant buyouts, succession claims, DHCR overcharges and rent reductions and more. Pierre-Outerbridge has 15 years of experience litigating in Supreme, DHCR, and Housing Court. To submit a question for this column, click here. To contact Outerbridge Law P.C. directly, call 212-364-5612 or 877-OUTERBRIDGE, or schedule a meeting today.
