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When did this come around exactly and why is this not illegal? Essentially this is false advertising and deception.
I don't remember seeing this before around 2013 when looking in Queens and now every other apartment in prime real estate area advertised by these McDonald Realty companies is now advertised as "net effective 1 month free" non-sense.
Newsflash realty agents - Transplants with a trust fund don't really care about the price tag, so why lie? All you are doing is turning people who are more likely to stay and remain in NY not deal with your business. I remember when we looked at some "luxury" apartments in LIC (food desert and on a sh** industrial block which would not have been safe for my Woman to walk on at night) and the guy literally had to pull out his phone to constantly re-calculate the "real" rental price.
Aside from Bobby Bojangles who is here from Dunedin FL after he won the lottery - Nobody cares about net effective. They want to know what they will actually be paying every month so they can budget and value the apartment appropriately relative to other options.
Unless all other apartments are UNIFORMLY advertised in net effective (the other 50% in Queens are NOT) then all you do is just make yourself less attractive for serious long time renters that have roots here and won't flicker out in 2 years.
I think what these landlords need to do is wise up and start paying delayed commissions based on LONGEVITY. Unless you plan on re-selling the property in 10 years what is the point of having a revolving door of these transplants (the ones without a trust fund) who suddenly realize that the net effective was actually $200 too high for their monthly budget - So they go back to their room share with Billy Bob from Waco, TX. (I have actually MET people who tell me these stories and KNOW people in this situation - It happens everyday in this city and these slimy agents of course only tell you the positives in big bold letters "CLOSE TO EVERYTHING, SO MANY AMENITIES" for a place 15 minute walk from the subway and Pablo's Bodega is the nearest place within a 15 minute walk )
LIC real estate is like gold today. one bedrooms are selling close to 1 million. in a few years, it will probably surpass many neighborhoods in Manhattan
My opinon:
Sliding Stock Market, Government instabilities, rising interest rates? Keeping a close eye on this one.
I see a slowing housing market ( a leveling out and status quo for the next number of years on home prices ).
A once good person now addicted behavior towards dope is akin to the Realtors' behavior to the Real Estate market.
Don't have a meltdown ................not all Realtors are criminals in disguise. )
When bad people do bad things good people eventually suffer....
Good people fall off ,demand drops, prices fall.
Is LIC Real Estate like Gold? All depends......How itchy are you?
To me, what's much worse than the net effective rent, which at least spells out that you're getting 13 or 14 months for the price of 12, for instance, is "preferential" rent. That harms tenants because they probably don't realize that after the initial lease is up, the rent can be raised all the way up to the "real" rent or any portion thereof. They get suckered in by a rent that seems reasonable, plus it might even be rent stabilized. Plus, "preferential" sounds good, as if you're being granted something that other people aren't able to get. The, after the year is up, the renter might get hit by a really nasty surprise.
So what happens? That person moves out, and the landlord gets to jack up the rent again. If the unit is rent stabilized, the rent can legally go up 20%.
A friend rented a studio in Murray Hill last year for around $1,800. It was a preferential lease. The actual rent was over $3,000. When my friend asked about it, the landlord's agent said, "Oh, don't worry about it. We won't raise your rent that high." But if it's not in writing, you can't count on it.
To me, what's much worse than the net effective rent, which at least spells out that you're getting 13 or 14 months for the price of 12, for instance, is "preferential" rent. That harms tenants because they probably don't realize that after the initial lease is up, the rent can be raised all the way up to the "real" rent or any portion thereof. They get suckered in by a rent that seems reasonable, plus it might even be rent stabilized. Plus, "preferential" sounds good, as if you're being granted something that other people aren't able to get. The, after the year is up, the renter might get hit by a really nasty surprise.
So what happens? That person moves out, and the landlord gets to jack up the rent again. If the unit is rent stabilized, the rent can legally go up 20%.
A friend rented a studio in Murray Hill last year for around $1,800. It was a preferential lease. The actual rent was over $3,000. When my friend asked about it, the landlord's agent said, "Oh, don't worry about it. We won't raise your rent that high." But if it's not in writing, you can't count on it.
"Preferential" rent is becoming more and more common and inescapable though. This is why I am passively looking at areas deeper in Queens where it SUPPOSEDLY hasn't become the norm yet (Jackson Heights, Elmhurst)
On the flip side, I am seeing what the above poster mentioned of these greedy real estate brokers having to lower the price by several orders of magnitude because some of these sub-par listings are on the market for 60+ days (people still move during the Winter time)
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