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I've lived in my rent-stabilized apartment in midtown Manhattan for 35 years. The building was converted to a coop about 20 years ago, and I decided not to buy (the mortgage and the maintenance charges would have been double my rent and I couldn't afford it even though in hindsight I should have since I could have bought for $80K and now my apt. is worth about 750K!).
After years of harassment by the landlord to evict me and my cats, I'm now finally looking to move out-of-state, and want the landlord to pay me a buyout/termination fee that's appropriate to the circumstances. How do I calculate the right amount to ask for? My rent is $1001, and could be rented for 3 times as much (though the landlord will probably sell the apt. for $750K plus). The landlord has asked me to name my price and he will consider it or reject it and continue to offer me renewal leases.
Can anyone give me the logic and amount of the buyout which is likely be accepted by the landlord? I really want to move down south and buy a home (they're very cheap in Alabama and Georgia, where I can get a 3-bedroom, 2 bath lovely home for $100-120K!). I don't want the landlord to reject my figure but I want to get whatever I'm due for this valuable lease.
I would ask for as much as possible because you will need enough to move and also because the building will sell the apartment for a very very high price.
Since 100k-120k is your figure, I say start with a figure much much higher than that, like double. Then you can work on negotiations from there. The worst he can say is no. The best he can say is yes.
Keep in mind that recent buyouts in prestigious areas like Central Park West were upwards of six figures up to seven figures. So this isn't really uncommon.
I dont understand how the length of your stay in the building or your moving costs have anything to do with it. You do NOT OWN your apartment. YOU decided to move so you should cover your own moving expenses.
You didn't buy the place. That was your fault. I believe its unfair to try to get the landlord to buy his/her/its OWN apartment from you. You made a mistake in not buying the place when you had the chance, so its current value is completely inapplicable.
Renting a place for several years does not transfer into ownership, especially when you actually had an opportunity to buy and didn't do it. And the reason was because you were initially SAVING about double your rent, while the other owners were forking over double what you were paying to support the building. And now you should somehow benefit as an owner? Totally unfair.
I don't want the landlord to reject my figure but I want to get whatever I'm due for this valuable lease.
Honestly, you are really taking advantage of the rent stablized system, which was intended to offer affordable housing to people who need it, not as a means of extorting money from a landlord who has supported you for years. Trust me, the water and heat the landlord must provide probably costs more than the rent you pay (considering all the others who bought into the co-op had to pay double what you were paying in order for the building to be maintained and operated).
You deserve NOTHING since you do not own the apartment. Be happy you've lived cheaply, off the landlord's back, all these years and leave it at that.
This is what happens? I had no idea. A longtime renting resident either passes the unit on to a relative (living with them for 2 years - I understand) or they give it up. BUT wait what's this buy-out thing? the landlord will pay a rent stabilized person to actually move? Thats completely ludicrous and I'm sure not what rent stabilization act intended. I feel for you not being able to afford to buy it but you were lucky to live there so cheaply. Id be surprised if the landlord goes as high as 100,000.
From what I understand you have a contract with your landlord to rent for the amount of 1000 USD per month and that there is no termination clause for the landlord.
So in opposition to other people who has answered my view is this: You have a contract and the landlord wants you to break it. As with all other contracts the part who wants to break it has to pay the other part a compensation in order to do so. That is common sense and fair in any and all ways. If you were a business I would say that he should pay you the net present value of alternative cost (which is renting the same type of appartment somewhere else, 3000 USD as you say) minus the cost you have today which is 1000 USD. The trouble is of course to determin the rate of interest. Say you choose 5% which would be comparable to an interest rate in a bank then this number is 300.000 USD over a 20 year period. The period is of course dependant on how old you are and how old you are planing to become ;-). So the amount your landlord "looses" is 300k USD if you continue to live in the appartment. This is if he chooses to rent it out, if he plans to sell then the amount would probably be higher. So since you would like to move I would try with eg 250k and see where that takes you.
From a strategic side you have to remember that you have the barganing power. He has no alternatives, and you know what he wants to do. So in order to get the price as high as possible you should make sure that he does not in any way understand that you want to move at your own free will. The only argument should be money: "I will move if you pay me enough, if not then never mind, I'll stay here till the bitter end..." Also you should tell him that you know what he looses if you continue to stay.
From what I understand you have a contract with your landlord to rent for the amount of 1000 USD per month and that there is no termination clause for the landlord.
So in opposition to other people who has answered my view is this: You have a contract and the landlord wants you to break it.
Actually you've read the OP's post totally wrong. HE WANTS TO MOVE DOWN SOUTH. He's the one who wants to terminate the lease. Of course the landlord will benefit from him leaving, but it is he who wants to leave the apartment.
Stop scamming the system. Extortion is illegal. If you want to move down south, then do it. But dont expect that your landlord should have to pay for your move or new house just because he is getting HIS APARTMENT BACK. That is simply not the intention of the rent stablization laws. Be fair and ethical here.
She is moving out because she WANTS to so she can buy a house down south. She wants to break the contract. I think this is crazy that someone gets to live in an apartment for much less than it's market value for years and years, effectively saving them money and when they want to move they get a payoff??? This landlord has been loosing money for years on this apartment and now the tenant should get paid???? I don't get it. If it were me I would feel luck just to have gotten a deal for all those years. Why does the landlord owe this tenant a dime???
The rent stabilization system in NYC is a joke. I won't go into all the reasons it almost destroyed the city in the 1970's. Today it mostly protects people that don't need protecting (like my friend's uncle who pays 40% of market value for his apt. and owns an 800K house in The Hamptons).
Having said that, the OP is within his rights, so I would not call it extortion. It may not be moral, but it is not illegal. I would contact a real estate attorney for advise.
The joke is on the OP and all the older rent stabilized tenants in NYC who did not buy their apartments. This person could have paid 80K for an apartment that is now worth 750K. That's nothing. There are instances where people could have paid 150K for an apartment that is now worth $2,000,000. Think of that nice Classic 6 on the Upper West Side.
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