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Rent-regulated apartments subject to preferential rents are facing crippling rent increases in spite of the Rent Guidelines Board's order of a rent freeze.
But if preferential rent is much below what is registered as the legal rent, then of course the landlord has the right to up the rent to that legal rent.
Rent-regulated apartments subject to preferential rents are facing crippling rent increases in spite of the Rent Guidelines Board's order of a rent freeze.
Actually rent regulated apartments subject to preferential rents are facing crippling rent increases BECAUSE OF( not in spite of ) the rent guidelines board's order of a rent freeze. Invoking the preferential rent clauses became the landlords only way of raising rents to keep up with expenses.
Rent-regulated apartments subject to preferential rents are facing crippling rent increases in spite of the Rent Guidelines Board's order of a rent freeze.
It's not a loophole. If done properly and legally (no fraud), then the legal rent listed on the lease IS the legal rent, which would be arrived at by calculating properly any allowable increases. So I don't see the problem.
If you're complaining that some of the legal rents put on the preferential lease are fraudulent, that's a different matter.
If you're a tenant with a preferential rent, then it's up to you to keep an eye on what the legal rent is on your lease and prepare yourself mentally for a possible day when your rent could jump from the preferential rent to the legal rent.
No one held a gun to the tenant's head and forced them to sign a preferential rent lease. If they didn't like having the threat that the preferential rent could someday be jacked up to the legal rent, the tenant could have looked for a different apartment.
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.
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.
So you're just complaining about market rents going up. This really has nothing to do with rent stabilization.
Not fraud exactly, but a bit of a scam, certainly. Here's why: Landlords know it is aggravating for tenants to find new apartments because of a shortage of rentals and the high cost of moving, physically and financially. So they can lure a tenant in with a teaser preferential rate and then boost the rate to the Heavens in a year or two and the tenant is somewhat trapped like a rat.
That is exactly how cable companies lure in customers with the $69.95 triple play, FOR A YEAR and then hit the wired customer for triple that rate the next year.
It is legal but sleazy. (Landlords raise sleaze to a high art form.)
Any tenant with a "preferential rent" should file to find out the REAL legal rent as soon as he signs a lease. NOT to do so opens the tenant up to REAL fraud.
It's not a loophole at all. It's very obvious and is how the system is supposed to work. It's all in black and white when you signed your lease.
Rent regulation sets a maximum rent that can be charged. There is no minimum. If the LL feels the market can't support whatever the maximum legal rent is, he is free to charge below it. He is also free to charge up to the maximum legal rent in the future.
A rent freeze only means that the maximum legal rent has not changed. The LL is free to charge you anything at or below this level.
There is a rent freeze and he is raising the rent $300 for what reason? Greed.
So let's say you start a business and put your financial resources into physical space, employee wages, website development, etc. Maybe your business is making furniture. At first when you start out, you can sell your furniture for $600 per piece. As your business grows, people are really clamoring for your furniture and you see that you can raise the price to $1200 per piece and people will still buy it.
You can be more successful, bring in more money, hire more employees, expand, and become more financially secure.
Apparently you think it's "greed" to have a business and raise the price of the product because the market will bear that. You are really out of touch.
Hope you can grasp this analogy. Landlords have made an investment and deserve to get the market price on their property (if they can do so within the law).
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
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Preferential rent equals loophole because...
