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So my buddy has a rent stabilized apt. The market rent he could have been charged was just over $2,500, but he has only been charged around $2,000 for his UWS studio via a rent rider due to market conditions. His rent was being increased almost $200 a month every lease renewal. This time? It was 30 something dollars due to the new law that says landlords can now only increase the amount charged on the rent rider + whatever percent increase the city rent board decides on, which this year was 1.5% for 1 year leases.
He is bouncing off the wall happy. Market rents in that area are flying up. It seems rent stabilized apts will be really sought after again, especially with the vacancy increases all but removed.
Anyone else in a rent stabilization apt paying a rent rider rate get a lease renewal since the new law went live? What do you landlords who own rent stabilized apts think after the city pulled a bait and switch on you?
So my buddy has a rent stabilized apt. The market rent he could be charged is just over $2,500, but he has only been charged around $2,000 for his UWS studio via a rent rider. His rent was being increased almost $200 a month every lease renewal. This time? It was 30 something dollars due to the new law that says landlords can now only increase the amount charged on the rent rider + whatever percent increase the city rent board decides on, which this year was 1.5% for 1 year leases.
He is bouncing off the wall happy. Market rents in that area are flying up. It seems rent stabilized apts will be really sought after again, especially with the vacancy increases all but removed.
Anyone else in a rent stabilization apt paying a rent rider rate get a lease renewal since the new law went live? What do you landlords who own rent stabilized apts think after the city pulled a bait and switch on you?
Think you are referring to rent *controlled* apartments, not stabilized.
Whole GD thing is a scam; and needs to be reigned in by courts or somebody.
People who can afford to pay $2k per month don't need someone subsidizing their rent.
Saving grace is nearly all RC tenants are older to down right elderly. Once they die it is almost a certainty if rent is too below market those apartments won't be back on general market anytime soon.
Think you are referring to rent *controlled* apartments, not stabilized.
Whole GD thing is a scam; and needs to be reigned in by courts or somebody.
People who can afford to pay $2k per month don't need someone subsidizing their rent.
Saving grace is nearly all RC tenants are older to down right elderly. Once they die it is almost a certainty if rent is too below market those apartments won't be back on general market anytime soon.
Hi Bugs. No, I mean rent stabilized. The one even young people have.
The law was changed. Before, many RS apts were actually renting at market rates because the amount the landlord COULD charge was higher than anyone would pay. With the new law, they can now only increase rent based off what the renter was actually paying plus the rent board yearly increase. It’s a big change. The landlord can no longer freely increase the rent to the max rent allowed for the unit.
The law also greatly reduced the vacancy increases and increases for improvements.
Hi Bugs. No, I mean rent stabilized. The one even young people have.
The law was changed. Before, many RS apts were actually renting at market rates because the amount the landlord COULD charge was higher than anyone would pay. With the new law, they can now only increase rent based off what the renter was actually paying plus the rent board yearly increase. It’s a big change. The landlord can no longer freely increase the rent to the max rent allowed for the unit.
The law also greatly reduced the vacancy increases and increases for improvements.
Only other class of RC units changed under new law was preferential leases. Increases in RS apartments are still governed by whatever annual numbers are voted upon by RGB.
Know plenty of normal RS renters who received renewal notices after June, their increases are exactly what the RGB voted upon for one or two year leases.
Only other class of RC units changed under new law was preferential leases. Increases in RS apartments are still governed by whatever annual numbers are voted upon by RGB.
Right, that’s what I mean. But many if not most RS leases rent under a Preferential lease. My buddy could have been charged up to $2,500 ish, but the LL gave him a pref lease as the apt prob wouldn’t have rented out for the full $2,500. Before, as the neighborhood got more and more expensive, his lease would increase a good hundred bucks per month each lease renewal. This time, due to the new law, his rent can only be increased by his pref lease amount plus 1.5% or about $30 per month.
It’s a gut renovated apt. Just think of the goldmine he will be sitting on after a few years of this...
Right, that’s what I mean. But many if not most RS leases rent under a Preferential lease. My buddy could have been charged up to $2,500 ish, but the LL gave him a pref lease as the apt prob wouldn’t have rented out for the full $2,500. Before, as the neighborhood got more and more expensive, his lease would increase a good hundred bucks per month each lease renewal. This time, due to the new law, his rent can only be increased by his pref lease amount plus 1.5% or about $30 per month.
It’s a gut renovated apt. Just think of the goldmine he will be sitting on after a few years of this...
Preferential leases were *NOT* a majority of RS units. You largely saw them in busted parts of the outer boroughs (many were in the Bronx) where legal RS rent was more than any sane person would pay to live in such areas.
Only other places you saw preferential leases were say in a building where for various reasons LL couldn't get the legal RS rent. For prime RE areas of the city such as Manhattan, parts of Brooklyn and Queens thanks to recent building boom there is a glut of apartments. This plus recent fiscal/credit crisis meant LL's couldn't find tenants even prime areas.
Market rate buildings offered things like free months rent or other discounts to lure/keep tenants. RS units are more complicated so LL's often went with preferential leases thinking they could always jack things up later on. Now they can't and are stuck with those busted tenants at lower rents.
Being as all this may Bill de Boob and his hand picked socialist progressive RGB won't be around for ever. When rent increases begin going back to normal levels (2%-4% on average for one year leases, roughly double for two), people had all better watch out.
Our buildings is rent stabilized and most apartments are back up to market ...between the big apartment turnover and all the capital improvement increases even we are just about at full market and my wife is here 35 years..we have lots of professionals in the building .... they hold off buying homes and buy business’s instead .
Then once the businesses are rolling they either buy or rent closer to their business or practice, so apartment turnover is very high
Our buildings is rent stabilized and most apartments are back up to market ...between the big apartment turnover and all the capital improvement increases even we are just about at full market and my wife is here 35 years..we have lots of professionals in the building .... they hold off buying homes and buy business’s instead .
Then once the businesses are rolling they either buy or rent closer to their business or practice, so apartment turnover is very high
I guess we will see how things pan out over the next five years. I just know he’s happy his rent increase was $35 a month this time and not another $200.
Our buildings is rent stabilized and most apartments are back up to market ...between the big apartment turnover and all the capital improvement increases even we are just about at full market and my wife is here 35 years..we have lots of professionals in the building .... they hold off buying homes and buy business’s instead .
Then once the businesses are rolling they either buy or rent closer to their business or practice, so apartment turnover is very high
You won't see the full effects of this law until a few years down the road when these RS buildings will start to deviate more and more from market rates and fall into disrepair. For the immediate future it will be business as usual, as some LLs will eat some of the profit losses and buildings don't really fall into disrepair that quickly.
Eventually, some of these LLs with buildings in certain neighborhoods will be stuck holding multi-million dollar assets with returns effectively capped at ~1.5%/yr by the government, after the base rent converges with total cost. These will trade at a massive discount similar to RC apartments.
Last edited by Gantz; 08-14-2019 at 03:33 PM..
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