The Michons are spending $45,000 to renovate a 2-bedroom 1-bath fixer-upper in the financial district.
Not exactly breaking real estate news, except for the fact this couple is spending 45K on a rental.
After reaching a yearly high last fall, the average rental prices across Manhattan have been on the decline. Prospective renters are in a prime position to ask for what they want and landlords are meeting their demands. Landlords are reexamining the traditional leasing agreement and opening up to creative negotiations with renters.
The Michons were looking for a larger place but couldn’t find anything in their price range. The 2-bedroom they found satisfied their needs but required a major renovation. They negotiated a deal for a 5-year lease and lower monthly rent.
Brandon Michon said the deal “allows us to get a home without the mortgage and without having to search hundreds of apartments for something that suits our taste.” The landlord benefits by getting a professionally renovated apartment that will command a higher price when they move.
Renovations are also being done on a smaller scale. Kurt Franz, a project manager for a real estate developer, turned a “shoebox” 360 sq-ft walkup apartment in the East Village into a clever custom-made space with storage benches and a Murphy bed. Franz spent about $1500 on materials and took 8 months to complete his renovation.
Franz said “After a chaotic day when you come back to something that’s really tailored to you — I just enjoy it.”
Best part of this renovation?
“Everything is built-in and customized to the space,” Franz said, “but in actuality there are probably 12 screws in the wall.”
The idea of investing time and money into a temporary place may seem absurd and financially backwards. However, there something to be said about this intentional attention to the present moment. Instead of worrying about when the right home will come along, people are creating the right home they desire right now.
Will this trend be seen in other markets?
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Read more from The New York Times “Why Renters Renovate” by Michelle Higgins
