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.
Preferential lease riders are fraudulent because they allow landlords to ignore the rent freeze or any rent stabilization laws, and yank the rider whenever they want. But preferential lease riders are more symptoms of a greater problem in the rent stabilization law then the actual problem. The problem is that every time someone moves out, the landlord is allowed to raise the rent up an outrageous amount. This clause was allowed in because some renters stay 25 years and both their legal and preferential rent are 400 or 500. This way landlords could increase the rent to pay for repairs etc... In practice however it is being abused because tenants who stay and year or two and then leave also allow the landlord to make this rent increase for the next incoming tenant. I lived in a Bronx 1bdr apartment where because of this illegal loophole, my preferential rent was $1050, but my legal rent stabilized rent was $1950!! What a joke! Provides ZERO stability or protection for tenants we need stronger rent stabilization laws that close this loophole. I am also a firm believer in expanding Section 8 vouchers not only for the poor but for the working and middle class. Anything about 30% of your income is ridiculous. If your working or middle class the portion above 30% is minimal anyway
Maybe you need to raise your income?
There is no illegal loophole. It's not fun to hear- but ultimately in a rent stabilized unit with preferential rent, you should be prepared to pay whatever the legal rent is 12 (or 24) months after moving in.
At least you know there is a maximum.
Those of market rate can effectively be priced out infinitely or removed with no remorse.
Preferential lease riders are fraudulent because they allow landlords to ignore the rent freeze or any rent stabilization laws, and yank the rider whenever they want.
That doesn't even remotely make it fraudulent. Both the legal maximum rent and the preferential rent are clearly conveyed to you in black and white when you sign your lease.
Once again, rent stabilization creates a legal maximum rent. The landlord is free to charge this amount or any amount below it. Simple as that.
I think some people just don't understand what the word "loophole" means. Really people are complaining about the lack of affordable housing which is understandable. But welcome to the real world. If legals rents far exceed the preferential rents and it is clearly stated on the leases, these are basically market-rate apartments. The only benefit to these apartments is that the landlords are required to offer a lease renewal at a price not exceeding the legal rent. That's all.
The landlord's preferential rent is actually the same as the market. The legal rent is almost double more than the market...then whatever is determined by the annual Rent Stabilization law...the landlord can increase the rent by whatever, because it is still less than the legal. It is not obvious. There is a rent freeze and he is raising the rent $300 for what reason? Greed.
The only reason I put up with it is because I love where I live, and most likely ownership will be my next move...but "what it is... is what it is" a loophole.
I have lived in this one bedroom stabilized apt for seven years. It started at $2100.... currently $3050...
nothing has ever been improved in the apartment or building. The same old white appliances, pop corn ceilings... fixtures that I find in home depot. but it is about location location location.
Then I hear a rent freeze and my new lease is $300 dollars more?
In life greed is something else...people will justify anything.... Dentist pull normal teeth for insurance money...Teachers put normal kids in special Ed for state money....People who invest in real estate justify greed... I even heard that senior citizens on fixed incomes are facing stress due to this greed.
No one will escape the judgement
Lust
Gluttony
Greed
Sloth
Wrath
Envy
Hubris
They don't call them deadly sins for no reason! Just because you invest in real estate you don't have to sell your soul or convince yourself the opposite of the obvious.
Why do you want to keep more money instead of paying it for rent. Your greed. See how that works?
And forget the childish magical thinking ideology.
. I lived in a Bronx 1bdr apartment where because of this illegal loophole, my preferential rent was $1050, but my legal rent stabilized rent was $1950!! What a joke! Provides ZERO stability or protection for tenants we need stronger rent stabilization laws
Boogey,
Have you considered the possibility that the $1950 figure is fraudulent? Have you checked it out or are you taking your landlord's word for it (never a good idea.)
Boogey,
Have you considered the possibility that the $1950 figure is fraudulent? Have you checked it out or are you taking your landlord's word for it (never a good idea.)
I moved out of there two years ago, but I'll never forget that experience. It could very well be legal because the rent stabilization laws are so poorly written they allow people to raise the rent up all outrageous amounts when the tenant moves out. This makes it basically a market rate apartment. The landlord was only giving a preferential rent because he knew nobody would go for a $1900 1bdr in that poor area. But as soon a gentrification comes into the neighborhood, the tenants in that unit have zero protection!
I moved out of there two years ago, but I'll never forget that experience. It could very well be legal because the rent stabilization laws are so poorly written they allow people to raise the rent up all outrageous amounts when the tenant moves out. This makes it basically a market rate apartment. The landlord was only giving a preferential rent because he knew nobody would go for a $1900 1bdr in that poor area. But as soon a gentrification comes into the neighborhood, the tenants in that unit have zero protection!
Yes, because the tenants are renting and not owning- so they do not have control over the price and value of the property they rent.
The city affords rent stability on roughly half its residents based most on seniority.
The neighborhoods where most New Yorkers enjoy good rates on stability are completely inaccessible today to those wishing to move to those areas.
The landlord's preferential rent is actually the same as the market. The legal rent is almost double more than the market...then whatever is determined by the annual Rent Stabilization law...the landlord can increase the rent by whatever, because it is still less than the legal. It is not obvious. There is a rent freeze and he is raising the rent $300 for what reason? Greed.
The only reason I put up with it is because I love where I live, and most likely ownership will be my next move...but "what it is... is what it is" a loophole.
I have lived in this one bedroom stabilized apt for seven years. It started at $2100.... currently $3050...
nothing has ever been improved in the apartment or building. The same old white appliances, pop corn ceilings... fixtures that I find in home depot. but it is about location location location.
Then I hear a rent freeze and my new lease is $300 dollars more?
In life greed is something else...people will justify anything.... Dentist pull normal teeth for insurance money...Teachers put normal kids in special Ed for state money....People who invest in real estate justify greed... I even heard that senior citizens on fixed incomes are facing stress due to this greed.
No one will escape the judgement
Lust
Gluttony
Greed
Sloth
Wrath
Envy
Hubris
They don't call them deadly sins for no reason! Just because you invest in real estate you don't have to sell your soul or convince yourself the opposite of the obvious.
People putting their apartments at market rate are doing none of those things. If you're working class or above your not owed any place of residence beyond your price point. People demanding apartments in certain neighborhoods be made available to them outside of normal market forces are no better than the landlords themselves. If I walked into a BMW dealer and gave them the business for not selling me a car while only having $500 what would you make of me?
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.
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.
