Not good at math??

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Sorry have not posted in this forum in awhile.  Anyway, a quick question for all you math geniuses.

Current rent is $625 per month.  Which option is better?

Option #1:

8 month lease renewal for $650.00 per month with $50 off first month.

Option #2:

14 month lease renewal for $650 per month with $100 off first month.

I would think that Option #2 is the better deal as for 6 months more one would receive $100 off as opposed to 8 months (Option #1) x 2 = 16 months for $100 off.  So, with Option #1 I pay $25 more per month for 6 months after $50 1st month off as opposed to Option #2 where I pay $25 more per month for 10 months after $100 off first month.  What am I missing?

Thank you,
Robert

P.S.  Almost 100% positive they will increase the rent after the contract is fulfilled; they have every year for the last 6yrs, but it used to be only by $10 per month.


 

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Looks like science question to me

lifesustain said:   Looks like science question to me

Yep!  That's why I posted. 

Do the: Option #1: 8 month lease renewal for $650.00 per month with $50 off first month.
This way Months 9-16 can raise another $25 and:
8 month lease renewal for $675.00 per month with $50 off first month.
 

Sounds like somebody needs help with their homework to me...and not an actual question.

With the 8 month lease, you will pay an average of $643.75 per month. With the 14 month lease you will pay an average of $642.86 per month. So almost equal. If you want the flexibility of moving, go with the 8 month lease. If you plan to renew, go with the 14 month lease because you will save 6 months of the next increase too.

LocalMotion said:   Sorry have not posted in this forum in awhile.  Anyway, a quick question for all you math geniuses.

Current rent is $625 per month.  Which option is better?

Option #1:

8 month lease renewal for $650.00 per month with $50 off first month.

Option #2:

14 month lease renewal for $650 per month with $100 off first month.

I would think that Option #2 is the better deal as for 6 months more one would receive $100 off as opposed to 8 months (Option #1) x 2 = 16 months for $100 off.  So, with Option #1 I pay $25 more per month for 6 months after $50 1st month off as opposed to Option #2 where I pay $25 more per month for 10 months after $100 off first month.  What am I missing?

Thank you,
Robert

P.S.  Almost 100% positive they will increase the rent after the contract is fulfilled; they have every year for the last 6yrs, but it used to be only by $10 per month.


 

  Who is offered 8 or 14 month renewal options, after having lived there for 6 years?

The $25 increase isnt relevant, since it's the same for either option.  The difference is getting $50 for 8 months, or $100 for 14 months, or twice teh money for less than twice the term.  Add in the likelihood of another increase after 8 months (for months 9-14), and when limited to these two choices the 14-month term is a no-brainer.  Of course, there are any number of factors that could make the 8-month option more desirable, since the difference in the per month cost is a whopping 90-cents - the real value of the 14-month option is months 9-14 with no increase.

LocalMotion said:   Not good at math.
 

Correct.

Glitch99 said:   
LocalMotion said:   Sorry have not posted in this forum in awhile.  Anyway, a quick question for all you math geniuses.

Current rent is $625 per month.  Which option is better?

Option #1:

8 month lease renewal for $650.00 per month with $50 off first month.

Option #2:

14 month lease renewal for $650 per month with $100 off first month.

I would think that Option #2 is the better deal as for 6 months more one would receive $100 off as opposed to 8 months (Option #1) x 2 = 16 months for $100 off.  So, with Option #1 I pay $25 more per month for 6 months after $50 1st month off as opposed to Option #2 where I pay $25 more per month for 10 months after $100 off first month.  What am I missing?

Thank you,
Robert

P.S.  Almost 100% positive they will increase the rent after the contract is fulfilled; they have every year for the last 6yrs, but it used to be only by $10 per month.


 

  Who is offered 8 or 14 month renewal options, after having lived there for 6 years?

The $25 increase isnt relevant, since it's the same for either option.  The difference is getting $50 for 8 months, or $100 for 14 months, or twice teh money for less than twice the term.  Add in the likelihood of another increase after 8 months (for months 9-14), and when limited to these two choices the 14-month term is a no-brainer.  Of course, there are any number of factors that could make the 8-month option more desirable, since the difference in the per month cost is a whopping 90-cents - the real value of the 14-month option is months 9-14 with no increase.

  I'm guessing for one reason or another the landlord wants to push the renewal to a certain month of the year that is easier for them to get new tenants. Both intervals are 6 months periods PLUS two months.

Ruffles will chime in shortly and say that's always summer without knowing the market.

Wasn't there a thread about sorta the same, took the smaller offer and was exicted at the end of the lease.

bbr said:   With the 8 month lease, you will pay an average of $643.75 per month. With the 14 month lease you will pay an average of $642.86 per month. So almost equal. If you want the flexibility of moving, go with the 8 month lease. If you plan to renew, go with the 14 month lease because you will save 6 months of the next increase too.
 
Glitch99 said:   
 
  Who is offered 8 or 14 month renewal options, after having lived there for 6 years?

The $25 increase isnt relevant, since it's the same for either option.  The difference is getting $50 for 8 months, or $100 for 14 months, or twice teh money for less than twice the term.  Add in the likelihood of another increase after 8 months (for months 9-14), and when limited to these two choices the 14-month term is a no-brainer.  Of course, there are any number of factors that could make the 8-month option more desirable, since the difference in the per month cost is a whopping 90-cents - the real value of the 14-month option is months 9-14 with no increase.


That's what my thinking is as I do not plan to move.  What with renting a large truck to move a  completely furnished 1 bedroom plus all my clothes, etc. AND finding another location that's in a decent neighborhood at a comparative rate AND to ask long time residents if the complex raises rates every renewal of the lease, safety, quietness, neighbors, etc.  Plus, what if the new complex I move into gets sold and the new owner/management adapts an aggressive renewal policy.  Too many variables towards the downside!
iago said:   Do the: Option #1: 8 month lease renewal for $650.00 per month with $50 off first month.
This way Months 9-16 can raise another $25 and:
8 month lease renewal for $675.00 per month with $50 off first month.

But, I pay $50 more per month ($675) than I do now for 6 months and $25 more for the other 2 months subtracting the $50 off for the last 2 months off the second 8 month contract. Whereas with Option #2, for 14 months I only pay $25 increase for 10 months after the $100 off.  Right?

Who knows if after the first 8 months contract is over they decide to up the rent to $35 per month more with nothing off.  Of course, it may not increase at all.  Got to go with what is offered NOW...my crystal ball is always cloudy!

But, I appreciate everyone for their input and green to posters with a pertinent response to my question...good or xxxx.

Thanks,
Robert
 

stanolshefski said:   Glitch99 said:   
LocalMotion said:   Sorry have not posted in this forum in awhile.  Anyway, a quick question for all you math geniuses.

Current rent is $625 per month.  Which option is better?

Option #1:

8 month lease renewal for $650.00 per month with $50 off first month.

Option #2:

14 month lease renewal for $650 per month with $100 off first month.

I would think that Option #2 is the better deal as for 6 months more one would receive $100 off as opposed to 8 months (Option #1) x 2 = 16 months for $100 off.  So, with Option #1 I pay $25 more per month for 6 months after $50 1st month off as opposed to Option #2 where I pay $25 more per month for 10 months after $100 off first month.  What am I missing?

Thank you,
Robert

P.S.  Almost 100% positive they will increase the rent after the contract is fulfilled; they have every year for the last 6yrs, but it used to be only by $10 per month.


 

  Who is offered 8 or 14 month renewal options, after having lived there for 6 years?

The $25 increase isnt relevant, since it's the same for either option.  The difference is getting $50 for 8 months, or $100 for 14 months, or twice teh money for less than twice the term.  Add in the likelihood of another increase after 8 months (for months 9-14), and when limited to these two choices the 14-month term is a no-brainer.  Of course, there are any number of factors that could make the 8-month option more desirable, since the difference in the per month cost is a whopping 90-cents - the real value of the 14-month option is months 9-14 with no increase.

  I'm guessing for one reason or another the landlord wants to push the renewal to a certain month of the year that is easier for them to get new tenants. Both intervals are 6 months periods PLUS two months.

Ruffles will chime in shortly and say that's always summer without knowing the market.

I have no idea why that landlord is offering 8 and 14 month leases. it would be helpful for op to tell us what city. I to don't think it's a northern climate

Vegas

My landlord offered similar extensions (I'd only been renting for 7 months or so at the time). Definitely not tied to travel seasons in my case. My apartment is in a small complex (300 units?) owned by a large REIT. The local management staff had no say in the extension lengths -- maybe the big computer at Headquarters manages the cash flow / renewals according to some algorithm?

debentureboy said:   My landlord offered similar extensions (I'd only been renting for 7 months or so at the time). Definitely not tied to travel seasons in my case. My apartment is in a small complex (300 units?) owned by a large REIT. The local management staff had no say in the extension lengths -- maybe the big computer at Headquarters manages the cash flow / renewals according to some algorithm?
  
I am going to talk to the manager in the last week of Oct. before I make a decision .

They're probably spreading around the lease endings across the tenants so that they dont' have all the leases ending in the same month or season. And they could be setting lease lengths so that leases don't end in months that are more difficult to fill vacancies.

jerosen said:   They're probably spreading around the lease endings across the tenants so that they dont' have all the leases ending in the same month or season. s.
bingo

You do not know how much the landlord will increase the rent at the end of each period. If Vegas hits a slump rents could soften, if things heat up the rent rise could be more. Unless you are a prognosticator I think you need to ignore rent rises for the purpose of this decision, or at most, consider the 14 month option as "rent increase insurance" if that is what you want.. Similarly, they might offer you money off the first month period in the next rent renewal, or they might not. And it might be more or less than the amount you were offered this time.

All things considered, the options are about equal and I would choose based on how flexible you need to be in terms of suddenly needing to leave the city.

sfchris said:   You do not know how much the landlord will increase the rent at the end of each period. If Vegas hits a slump rents could soften, if things heat up the rent rise could be more. Unless you are a prognosticator I think you need to ignore rent rises for the purpose of this decision, or at most, consider the 14 month option as "rent increase insurance" if that is what you want.. Similarly, they might offer you money off the first month period in the next rent renewal, or they might not. And it might be more or less than the amount you were offered this time.

All things considered, the options are about equal and I would choose based on how flexible you need to be in terms of suddenly needing to leave the city.

  
Very concise and sensible advice...agreed 100%!

DTASFAB said:   
LocalMotion said:   Not good at math.
Correct.

  And doesn't know how to use a calculator?



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