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Brooklyn, New York here. So I received my renewal lease form today and I'm a little baffled as to the additional deposit requirement. Basically, the management company is asking for an additional $997.22 to add to my current $950 deposit (current rent). When I added the 950 and 997.22 it equals to the Legal rent ($1947.22) if I sign a 2 year lease. I've never heard of a management company/LL request such a steep deposit increase. Usually they ask for the difference from the original deposit to the new rent increase, which would be an additional $42.75 so the deposit would match the rent increase for a 2 year lease which is $992.75.
Can someone please shine some light on why the heck the management company is asking for an additional $997.22? I left them a voicemail so I'm sure I'll hear from them tomorrow, but this was something that was never mentioned nor discussed by the broker. Plus, it doesn't make sense why they are asking for an additional deposit to match the legal rent, even though I have a preferential rent lease. By the way, this is for a studio apartment in Midwood.
Brooklyn, New York here. So I received my renewal lease form today and I'm a little baffled as to the additional deposit requirement. Basically, the management company is asking for an additional $997.22 to add to my current $950 deposit (current rent). When I added the 950 and 997.22 it equals to the Legal rent ($1947.22) if I sign a 2 year lease. I've never heard of a management company/LL request such a steep deposit increase. Usually they ask for the difference from the original deposit to the new rent increase, which would be an additional $42.75 so the deposit would match the rent increase for a 2 year lease which is $992.75.
Can someone please shine some light on why the heck the management company is asking for an additional $997.22? I left them a voicemail so I'm sure I'll hear from them tomorrow, but this was something that was never mentioned nor discussed by the broker. Plus, it doesn't make sense why they are asking for an additional deposit to match the legal rent, even though I have a preferential rent lease. By the way, this is for a studio apartment in Midwood.
Thanks for any insight!
I'm a bit unclear as to your issue. If the LL is asking for a $997.22 additional deposit then that means your new rent (if you renew your lease) will be $997.22 higher from the rent your currently pay now. It appears that the LL is asking to collect the higher legal rent which he is entitled to.
I had this issue with my old landlord - they jacked me up to the legal rent after one year on "preferential rent". However, it was only an increase of 100 bucks - not the doubling of my rent. Are you really going to pay almost $2000 for a studio in Midwood? You might as well move to Manhattan for that price - something doesn't sound right.
I think your new TOTAL deposit is 997.22 - up from the 950 which is a difference of 47.22 - which sounds about right. Have you called them and asked? It wouldn't be the first time a management company made a mistake on a bill.
Yet you are paying a preferential rent of $950, which is roughly half the alleged legal rent. That's a pretty big discount off the legal rent. Doesn't sound right. Specifically when a studio in Midwood doesn't go anywhere near two grand! $950 sounds about right for a typical neighborhood studio.
Usually they can raise it up to the legal rent but I often see they will apply the increase to the existing preferential rent. (but they wont because the legal rent is way above market).
I would call them up, the forms may be automated/typed in by a 3rd party. Could be an error, if the rent itself is going up $42, then the deposit should too
For the above, the legal rent has nothing to do for market asking prices, it it just legally what the rent could be. Once the legal rent exceed 2K and the apt is vacated it could be destabilized.
..... Once the legal rent exceed 2K and the apt is vacated it could be destabilized.
Maybe this is the answer.Maybe they are hoping the OP will leave so they can get a "vacancy" increase in the "legal rent "to push them over the $2,000 threshold and remove the unit from stabilization.
Thanks for the posts guys. They are asking the additional 997.22 to put towards the deposit, so my deposit would match the legal rent. My preferential rent would only be raised by around 42.75 for a two year lease to 992.75 per month. I'm assuming they made a mistake by asking the additional 997.22 deposit. It doesn't make any sense to ask at all, I'd expect them to ask for the difference so my deposit matches my monthly rent. Hope that cleared it up.
I had this issue with my old landlord - they jacked me up to the legal rent after one year on "preferential rent". However, it was only an increase of 100 bucks - not the doubling of my rent. Are you really going to pay almost $2000 for a studio in Midwood? You might as well move to Manhattan for that price - something doesn't sound right.
I think your new TOTAL deposit is 997.22 - up from the 950 which is a difference of 47.22 - which sounds about right. Have you called them and asked? It wouldn't be the first time a management company made a mistake on a bill.
Yeah, I left them a voicemail yesterday afternoon. I'll call them again today if I don't hear from them within a few hours. I agree that my deposit should be 997.22 if I sign a 2 year lease up from the 950 so they should be asking for a check of 47.22, not 997.22. I hope someone just has fat fingers, it sucks looking at apartments. And there's no way in hell I'd pay $2k for an apartment in Midwood.
Maybe this is the answer.Maybe they are hoping the OP will leave so they can get a "vacancy" increase in the "legal rent "to push them over the $2,000 threshold and remove the unit from stabilization.
They can't get the 2k for this apartment in this neighborhood. One bedrooms usually go for 1050 and up, depending on the square footage.
They can't get the 2k for this apartment in this neighborhood. One bedrooms usually go for 1050 and up, depending on the square footage.
It doesn't matter whether they can actually get $2,000 for the apartment right now. Once the "legal" rent goes over the threshold the unit gets destabilized FOREVER, even if they continue to rent it out for less.There are lots of benefits to getting a unit destabilized other than an immediate rent hike.Among other things they would no longer have to offer you a lease with a rent increase set by the rent guidelines board.When the next lease runs out the RGB could be saying 2% increases for stabilized apartments and the landlord could say "tough,the unit is no longer stabilized we want a 5% increase." The rent would still be below the 2,000 level but you would have no recourse.You would have to either pay the 5% or move.No RGB to protect you because the unit would be out of their jurisdiction.
Also...every time a unit in a building is destabilized the value of the building increases.Destabilization of as many units as soon as possible is always a landlord's goal.
Last edited by bluedog2; 02-25-2011 at 06:31 AM..
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