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Modsquad, you’re some piece of work. Your link proves NOTHING as it is only a piece of the puzzle and the bigger picture is missed. The price index ONLY measures basic expenses. Oil, taxes, insurance, things of that nature. The price index DOES NOT take for account and measure the “unexpected” expenses such as the big storm we had a few months ago that did HEAVY damage to many building exteriors that are very expensive to fix. Do you know how much contractors charge for these types of repairs? THOUSANDS! It ain’t cheap and the price index does not count that as an “expense” so the calculations are WRONG to begin with. So you can’t go by those numbers.
What you fail to understand is that the majority of NY buildings are old which can create unexpected repairs at any given time.
I have a 25 year old boiler that’s on it’s last leg. If tomorrow I have to buy a NEW boiler for the building, it’s going to cost me at least 150K. And I have to pay it in a lump sum, not monthly payments. Do you think the “price index” counts that as an expense? NO! It’s not even on the radar. So where does that money come from? Thin air? No, it comes out of the landlord’s pockets with nothing in return but low increase percentages.
How about replacing the whole roof in the building or doing brick pointing, water proofing, replacing rusted lentils above each apartment window that holds the weight of the bricks, replacing the old concrete sidewalks and courtyards that’s a tripping hazard, replacing the old elevator and so forth? And I might add that may of these repairs don’t even qualify as MCI repairs so the landlord is getting screwed on that end to. You see where I’m going with this Modsquad??? I know more about the inner workings of running a Rent Stabilized apartment building than you will ever know because I'm in the trenches while you're in behind a computer posting links from BIAS soucres because its a well know fact that the RBG is a PRO-TENANT board despite what anyone says. The bottomline is those unexpected expenses are IGNORED by the RGB and are NOT counted for in the “price index”. So you can pretty much throw those price index numbers out the window as they are useless in measuring the TRUE expenses of an apartment building. Whatever happen to being fair? That's all Landlords are asking. And until there is fairness, there will always be beef and the people who ultimately suffer are the TENANTS.
Last edited by victorfox; 06-26-2010 at 12:10 PM..
Modsquad, you’re some piece of work. Your link proves NOTHING as it is only a piece of the puzzle and the bigger picture is missed. The price index ONLY measures basic expenses. Oil, taxes, insurance, things of that nature. The price index DOES NOT take for account and measure the “unexpected” expenses such as the big storm we had a few months ago that did HEAVY damage to many building exteriors that are very expensive to fix. Do you know how much contractors charge for these types of repairs? THOUSANDS! It ain’t cheap and the price index does not count that as an “expense” so the calculations are WRONG to begin with. So you can’t go by those numbers.
What you fail to understand is that the majority of NY buildings are old which can create unexpected repairs at any given time.
I have a 25 year old boiler that’s on it’s last leg. If tomorrow I have to buy a NEW boiler for the building, it’s going to cost me at least 150K. And I have to pay it in a lump sum, not monthly payments. Do you think the “price index” counts that as an expense? NO! It’s not even on the radar. So where does that money come from? Thin air? No, it comes out of the landlord’s pockets with nothing in return but low increase percentages.
How about replacing the whole roof in the building or doing brick pointing, water proofing, replacing rusted lentils above each apartment window that holds the weight of the bricks, replacing the old concrete sidewalks and courtyards that’s a tripping hazard, replacing the old elevator and so forth? And I might add that may of these repairs don’t even qualify as MCI repairs so the landlord is getting screwed on that end to. You see where I’m going with this Modsquad??? I know more about the inner workings of running a Rent Stabilized apartment building than you will ever know because I'm in the trenches while you're in behind a computer posting links from BIAS soucres because its a well know fact that the RBG is a PRO-TENANT board despite what anyone says. The bottomline is those unexpected expenses are IGNORED by the RGB and are NOT counted for in the “price index”. So you can pretty much throw those price index numbers out the window as they are useless in measuring the TRUE expenses of an apartment building. Whatever happen to being fair? That's all Landlords are asking. And until there is fairness, there will always be beef and the people who ultimately suffer are the TENANTS.
Have you ever put your building up for sale and what happened/why not?
the “unexpected” expenses such as the big storm we had a few months ago that did HEAVY damage.
I N S U R A N C E
mod cut - language
Here's a link for tax incentives for owners who install greener technology when replacing boilers, not to mention the savings in oil which will not be passed on to the tenants.
Green Buildings - NYS Dept. of Environmental Conservation (http://www.dec.ny.gov/energy/218.html - broken link)
Last edited by modsquad81; 06-26-2010 at 01:07 PM..
[quote]In a decision dated January 20, 2010, the Supreme Court of New York County issued a decision invalidating the minimum rent increases approved by the Rent Guidelines Board in Orders Nos. 40 and 41. These minimum increases affected rent stabilized tenants who renewed leases with effective dates between October 1, 2008 and September 30, 2010, had been living in their apartments for at least six years, and were paying rent of less than $1,000 a month.
Moderator cut: Personal attack
Last edited by bmwguydc; 06-27-2010 at 09:34 AM..
Reason: Personal attack
It's a well know fact that the Rent Stabilization Law is a PRO-TENANT law that pretty much "sticks it" to Landlords by treating them unfairly, creating one sided rules that solely benefit the tenant more than the OWNER.
Since we're only dealing with well-known facts here, it's only fair to point out that it's also a well-known fact that all of the original rent laws in New York City were written by landlords, which pretty much "stick it" to tenants. Laws passed in the years since that might be called favorable to tenants were nothing more than an attempt at leveling the playing field. But, good golly Miss Molly, who would've guessed that landlords would have a problem with some of their advantages being taken from them?
Please link to a source that indicates double digit increases in owners expenses of RS apartment houses.
I breathlessly await your response, madam.
To understand the corrosive effect of government control of rents, you have to look at a multi-year period. Since I purchased my building eight years ago, expenses have increased, according to the RGB, by 56.1% (my expenses have increased more than that). http://housingnyc.com/html/research/cresearch.html
In the same period, stabilized rents have increased 27.75% which is less than half the percentage increase in expenses (I used the total increase for one-year leases. The total increase for two-year leases is even less).
So the longer one owns rent-stabilized apartments, the greater is the gap between expenses and income. And if one has ownership long enough, profit will turn to loss.
Quote:
Originally Posted by nightcrawler
as a co-op owner I know what the cost is of things and it is sickening. Most tennants, unfortunetely do not realize what it takes to keep a building up and running.
Oil doesn't just seep up from the ground and into our tanks. lawn needs care, repairs on building, brickwork, concrete, the list goes on and on. All the little hardware incedentials adds up............
Low-rent stabilized tenants not only don't know about expenses, but DON'T CARE. Their argument is not oriented toward owner expenses, but to tenant affordability. Unfortunately, the pro-regulation tenant lobby has QUASHED all efforts at means testing so there is no way to prove or disprove the affordability argument. Suspicious?
Quote:
Originally Posted by Henna
Also, if the landlord is really making no money from his business (real estate ownership) shouldn't he just sell the building?
Quote:
Originally Posted by Henna
Have you ever put your building up for sale and what happened/why not?
Henna,
Well, if the building is actually losing money, it can't be sold. In the history of the NYC rent control system, many buildings were abandoned. Beginning in the early 80's, the way out was co-op conversion. Many, many rental apartments were lost to abandonement and conversion.
If the building is still generating a small profit then selling the building may put that specific owner out of his misery, but it only transfers the problem to another owner. Over time, that owner too will have the same problem.
Rent regulation has been a disaster not only for building owners but for the city population as a whole. It has had a significant negative effect on both the quantity and quality of the rental stock. In addition, the cost of maintaining the system to taxpayers has been staggering.
The irony of all this is that the liberal state politicians are pushing not for lightening the grip of rent regulation but for making it even more onerous. It's purely a political animal. Things won't change until the average citizen wakes up and understands how rent regulation hurts him.
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