U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > New York > New York City
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 10-26-2011, 11:41 AM
 
64,851 posts, read 66,351,407 times
Reputation: 43224

Advertisements

Quote:
Originally Posted by kefir king View Post
nobody said any landlord could get any rent he wants...only that he could and would get more if all controls were lifted tomorrow.

I said that very clearly and yet a landlord reads something else into it.

The issue is indisputable and there is no reasonable argument that rents will be lowered when all controls are removed at the swipe of a pen. None that make any sense anyway.

Make it personal. If you, mathjak, were freed of all controls tomorrow, what is the first letter you would send to your rent stabilized tenants?
THE LETTER WOULD SAY:they would be paying fair market.... and Rightfully so.
Reply With Quote Quick reply to this message

 
Old 10-26-2011, 03:10 PM
 
64,851 posts, read 66,351,407 times
Reputation: 43224
If your salary had a pay freeze and they cancelled it and said you can ask for a raise what would you do?
Reply With Quote Quick reply to this message
 
Old 10-27-2011, 12:14 AM
 
2,503 posts, read 3,527,418 times
Reputation: 1906
Quote:
Originally Posted by mathjak107 View Post
If your salary had a pay freeze and they cancelled it and said you can ask for a raise what would you do?
Good point Mathjak! These pro-rent stabilization bleeding-heart liberals and socialist just don't get it and will NEVER get it. It's like talking to a wall!!!

No matter how many studies prove that rent stabilization/control does a disservice to the people and the housing stock in general and despite what facts you throw at them, they will FOREVER refuses to believe a FREE MARKET environment is better and healthier.

Once again for all the slow people who think if rent stabilization would end tomorrow landlords would charge whatever they want...THE MARKET DICTATES WHAT THE RENTAL PRICE WILL BE, NOT THE LANDLORD!!!

Please get that through your thick socialist heads!

Yes, us landlords would love to make more money just like anyone else on this board and provide for our families just like any other family would BUT that doesn't mean a landlord can just pick a number out of thin air and say....ehhhh I want a brand new BMW sports car so I think I'm going to ask for $4000 a month in rent for my Bronx apartments thats in the HOOD where the median household income is 31K a year.

That's not the way it works and you're a dummy if you think thats how business works.

If rent stabilization were to end tomorrow, the tenants who would get sticker shock would be the long-time tenants who pay like $500 for a 3 bedroom. And just like Mathjak said, if you've been living in a rent stabilized apartment for 15 years or less, chances are your are already paying MARKET RENT or very close to it. Its only a lucky few who really pay cheap rent and benefit from the RS system. And I challenge anyone to visit those long-time RS tenants and tell me the condition the apartment is in then compare it to a free market apartment and tell me if you see a difference.

Due to the cheap rent these long time tenants become prisoners of THEIR apartments. What a life that must be for them...SMH

Remember...YOU GET WHAT YOU PAY FOR. Thanks Rent Stabilization!
Reply With Quote Quick reply to this message
 
Old 10-27-2011, 04:38 AM
 
64,851 posts, read 66,351,407 times
Reputation: 43224
yep markets dictate prices. look at what just happened to net flix.

they thought they could charge whatever they wanted and the ceo admitted they were just blown away when they lost almost 1 million subscribers since the increase. their stock got knocked on its butt as their worth plummetted from that move.

unless you find a sucker ,like water, prices will find their own levels.

its when you artificially try to alter that balance through regulation that things get screwed up and out of whack.

look what happened a few years ago when our brilliant gov't decided to protect the american manufacturers against the japanese chip makers from dumping computer chips here.

prices on chips soared as we had a shortgage here. manufacturers of computers couldnt build them as they had no chips.

sooooo the bone headed regulation was stopped and things went back to normal again.
Reply With Quote Quick reply to this message
 
Old 10-27-2011, 04:44 AM
 
64,851 posts, read 66,351,407 times
Reputation: 43224
Quote:
Originally Posted by nightcrawler View Post
[/b][/u]

no they won't

rents are never going to go down, kinda like the gas and cigret prices never will go down again
you must be alot younger than me because thats not true.

right here in nyc after the stock market crash in 1987 our real estate market plunged.

i just closed 2 weeks prior on my first investment property,a co-op in kew gardens.

when the smoke cleared i was down 20% easy and saw my down payment evaporate..

rents fell as well and it took me 10 years to finally get the rent to the point where it exceeded costs.

my rent i was charging was 850.00 when i first bought with carrying costs of about 1200 a month.. i had to eventually drop the rent to 800 to attract tenants after that as thats where most of my competition was. if i didnt find a tenant immeadiately i would have to wait another month until the next co-op board meeting to get them approved. that put pressure on the rents i could charge as it wouldnt pay to try to get more if i missed the board meeting.

rents follow the markets whether you think so or not.


today we get 1600.00 a month 24 years later. thats about 3% a year which really is our average for what the inflation numbers were. prices even open market just followed inflation for us no matter what i tried to charge through the decades.

Last edited by mathjak107; 10-27-2011 at 05:05 AM..
Reply With Quote Quick reply to this message
 
Old 10-27-2011, 08:04 AM
 
Location: Manhattan
20,185 posts, read 26,506,670 times
Reputation: 9059
Quote:
Originally Posted by bluedog2 View Post
Something everyone seems to forget :

There is a very large number of officially "rent stabilized" apartments( would love to know the number) that are actually renting at market rates that are well below the maximum allowed by law.In fact,most people I know who live in stabilized apartments have rents below what their landlords could legally charge because the market will not allow the landlords to get the legal maximum base rent.

In such cases the leases usually stipulate 2 rents,the maximum base rent and the so called "preferential( lower) rent", which is what the tenants actually pay because of market conditions.

This situation may not be so widespread in Manhattan but it is very common in other boroughs.This phenomenon is what is allowing landlords to raise rents rapidly (upon renewal or vacancy) during the current rent squeeze.They can raise rents more than the % set by the guidelines board because the units haven't yet reached the maximums allowed.

End result is that there are lots of apartments in the city that are not officially "free market" but are in fact "free market."
I tried to educate myself on the issue of MAXIMUM BASE RENT and could find only references to RENT CONTROL, nothing in RENT STABILIZATION.
In RENT CONTROL the rent can be raised only 7.5% until MBR is reached.
Is there somthing comparable to MBR in rent stabilization? Is the term something different than MBR?

Bluedog, any idea of the number of regulated (controlled or stabilized) rents in the City that are below what the landlord could charge? What percentage of regulated apartments pay a "preferential rent."
Reply With Quote Quick reply to this message
 
Old 10-27-2011, 08:53 AM
 
2,503 posts, read 3,527,418 times
Reputation: 1906
From what I understand, there are a lot of rent stabilized apartments that the LEGAL REGULATED RENT is higher then the actual MARKET RENT for the area.

Perfect examples are the apartments in my building thats in the Bronx. I have 12 DEREGULATED apartments that despite being deregulated are paying the same amount of rent before the apartment was deregulated. So the "regulation" or "deregulation" status of the apartment had no bearing on the amount the apartments can fetch for rent.

With the exception of about 5-6 rent stabilized apartments in my building, the rest of the rent stabilized apartments have PREFERENTIAL RENTS. For those who don't know what preferential rents are, they are "discounted" rents a Landlord gives a tenant because the ACTUAL LEGAL REGULATED RENT is much higher than what the MARKET can BEAR in that specific location.

I have 1 bedroom rent stabilized apartments that the LEGAL REGULATED RENTS are $1,700+. Obviously I can't rent a 1 bedroom apartment in the Bronx for $1,700 (Manhattan yes, but not the Bronx) so what I have to do is give the tenant a "preferential rent" or "discounted rent" without losing my LEGAL right to charge the LEGAL REGULATED RENT.

So this goes to show that the "STATUS" of an apartment (rent stabilized or deregulated) has no bearing on the rent price as its the MARKET in your particular REGION that determines what the rent prices will be.

Having said all this, and knowing the fact that Rent Stabilization does a disservice to tenants and STRIPS AWAY any incentive a landlord has to improve their property as well as STRIPS AWAY any incentive a developer has in building new QUALITY housing to meet the demand, I wonder why so many on this board still put blinders on and support Rent Stabilization despite all the negatives.
Reply With Quote Quick reply to this message
 
Old 10-27-2011, 11:37 AM
 
Location: Manhattan
20,185 posts, read 26,506,670 times
Reputation: 9059
But is there a particular legal term comparable to MBR in rent control, that refers to the legally allowed maximum rent in the RENT STABILIZATION system?

Is it also called Maximum Base Rent or something else...or nothing at all.
(I am familiar with "preferential rent.")

Is it called the LEGAL REGULATED RENT or is that just a convenient description?
Reply With Quote Quick reply to this message
 
Old 10-27-2011, 12:07 PM
 
Location: Manhattan
20,185 posts, read 26,506,670 times
Reputation: 9059
Quote:
Originally Posted by mathjak107 View Post
the letter would say:they would be paying fair market.... And rightfully so.
and the rent would go up...QED!


Exactly as I said!

Can you imagine: "Dear tenant, as your landlord I am so happy to tell you I will be reducing your rent by $200 next month."
Reply With Quote Quick reply to this message
 
Old 10-27-2011, 01:53 PM
 
64,851 posts, read 66,351,407 times
Reputation: 43224
About as likly as your employer telling you he will reduce your salary in a pay cut.

It could happen but only if conditions forced us to accept lower.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:



Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > New York > New York City
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top