Stabilization rider, but over $2000? (apartments, lease, how much)

[jennem]

I signed a 1-year lease for my apartment in April of 2008. Prior to my tenancy, it had been stabilized with a rent of $800. They gut renovated, did the legal calculations, and raised the rent to $2200.
My lease has a “Rent Stabilization Lease Rider” attached to it that shows the guidelines and calculations.
As I wait for my renewal lease, my question is…is my apartment still stabilized? That is, are they required to offer me a new lease, and required to raise it only by the current regulations under stabilization? The “high income rent deregulation” portion of the rider on our lease says that the rent has to be over $2000 AND our income has to be over $175,000 (nowhere close!). But on the city’s website, it says “A rent regulated apartment which becomes vacant and could be offered at a legal regulated rent of $2,000 or more per month is no longer subject to rent regulation.” We started at $2200.
Our building is on the city’s stabilization list. We have not gotten any notice of deregulation. Then again, we haven’t gotten a renewal lease and it’s past the 90-day limit that the rider requires.
If our rent is raised by too much, we will need to look for a new place and would like as much advance warning as possible.
I'm confused because at $2200 I'd assume it's not regulated, but the rider attached to the lease implies that it is.
Thanks for any insight!
Jennifer

[A_Better_Bronx_2morrow]

Originally Posted by jennem

I signed a 1-year lease for my apartment in April of 2008. Prior to my tenancy, it had been stabilized with a rent of $800. They gut renovated, did the legal calculations, and raised the rent to $2200.
My lease has a “Rent Stabilization Lease Rider” attached to it that shows the guidelines and calculations.
As I wait for my renewal lease, my question is…is my apartment still stabilized? That is, are they required to offer me a new lease, and required to raise it only by the current regulations under stabilization? The “high income rent deregulation” portion of the rider on our lease says that the rent has to be over $2000 AND our income has to be over $175,000 (nowhere close!). But on the city’s website, it says “A rent regulated apartment which becomes vacant and could be offered at a legal regulated rent of $2,000 or more per month is no longer subject to rent regulation.” We started at $2200.
Our building is on the city’s stabilization list. We have not gotten any notice of deregulation. Then again, we haven’t gotten a renewal lease and it’s past the 90-day limit that the rider requires.
If our rent is raised by too much, we will need to look for a new place and would like as much advance warning as possible.
I'm confused because at $2200 I'd assume it's not regulated, but the rider attached to the lease implies that it is.
Thanks for any insight!
Jennifer

Looks to me that your apartment is NOT rent stabilized since the legal rent is $2,200. If the apartment was deregulated due to vancancy, he doesn't not need to fill out any forms and inform the city.

I'm thinking that maybe the landlord gave you a stabilized lease rider because he wanted to play it safe by informing you the work that has been done to your apartment and to justify the increase.

How many bedrooms is your apartment and how much do you pay for rent now?

If you are currently paying market rent for your apartment, I don't think the landlord would get rid of you as if he did, he would lose business.

Also, the next tenant after you would be paying pretty much what you would be paying after the increase so it doesn't make sense for him to not renew your lease.

Only possible scenario I can see is that if you have been a difficult tenant, pays late or owes back rent, then that gives him reason not to renew your lease.

[jennem]

Have been an excellent tenant--paid on time every month, and only called for maintenance on MAJOR issues that would've damaged the building (heating system leak, shower incorrectly installed).

Checking Craigslist, we're right about at market rent--there are some higher, some lower. Our apt. is pretty nice, but the building itself is pretty lousy and some of the tenants are a pain--smoking pot & having sex in the hallways. Which means that to us, "market rent" is lower than just for the apt interior itself.

They put an apt on the floor below us on the market for $2600, it is nicer & one room larger. And not next to the roof stairwell where the above behavior occurs. So I think sticking at $2200 should be fair for them, if we move out they will lose at least 1 month's rent which would lose them any increase. Plus most tenants they get are groups of students--as a small, mature, stable family unit, we are somewhat more desirable.

[A_Better_Bronx_2morrow]

Originally Posted by jennem

Have been an excellent tenant--paid on time every month, and only called for maintenance on MAJOR issues that would've damaged the building (heating system leak, shower incorrectly installed).

Checking Craigslist, we're right about at market rent--there are some higher, some lower. Our apt. is pretty nice, but the building itself is pretty lousy and some of the tenants are a pain--smoking pot & having sex in the hallways. Which means that to us, "market rent" is lower than just for the apt interior itself.

They put an apt on the floor below us on the market for $2600, it is nicer & one room larger. And not next to the roof stairwell where the above behavior occurs. So I think sticking at $2200 should be fair for them, if we move out they will lose at least 1 month's rent which would lose them any increase. Plus most tenants they get are groups of students--as a small, mature, stable family unit, we are somewhat more desirable.

Ok good so you shouldn't have anything to worry about. To play it safe, give the landlord a call and tell him that you want to confirm that he is renewing your lease. How how much the new rent would be.

[jennem]

Thanks, I just emailed the managing agent to tell him we want to stay as long as our rent remains reasonable. (Our landlord is anonymous and the managing agent is much better with emails than phone calls.) In the meantime I printed out a lot of apartment listings for equivalent or better places at the same price, in case I need to negotiate.

[A_Better_Bronx_2morrow]

How much are you currently paying for rent and how many bedrooms?

[scatman]

If you were given a lease with a stabilization rider, shouldn't you have a stabilized rent, which would put an increase cap at about 6%?

Also, isn't the max income to be a stabilized tenant $200K?

Could the landlord arbitrarily raise the rent to $2200 based on his gutting the apartment? If yes, wouldn't that give landlords the loophole to raise rent well above market rate?

Arent there appeals processes if you have reason to believe your rent is raised above market rate?

Just asking.

[mathjak107]

a landlord has to stay within guidlines if the apartment is vacant. if the apartment is below market he can increase it on vacancy about 18% plus capital improvements ,plus a multiplier if the old tenant has been there beyond a certain amount of time..once its 2,000 a month its deregulated no matter how much the new tenant earns

if its occupied its under stabilization until the rent goes over 2,000 and the tenants earn more than 175,000 2 years in a row

its possible the renovations added so much to the capital improvement allowance that it legally pushed it over 2,000

[lamontnow]

Scatman,
"wouldn't that give landlords the loophole to raise rent well above market rate?"
That question makes absolutely no sense, and shows a lack of understanding of what market rent means. By definition, market rate rent means a rent determined by supply and demand. A rent requested that is above market will not be met and the apartment will remain vacant because prospective tenants can find similar apartments at a lower rent (the market rent).

[A_Better_Bronx_2morrow]

Originally Posted by scatman

If you were given a lease with a stabilization rider, shouldn't you have a stabilized rent, which would put an increase cap at about 6%?

Also, isn't the max income to be a stabilized tenant $200K?

Could the landlord arbitrarily raise the rent to $2200 based on his gutting the apartment? If yes, wouldn't that give landlords the loophole to raise rent well above market rate?

Arent there appeals processes if you have reason to believe your rent is raised above market rate?

Just asking.

Scatman...you have absolutely no idea how the rent stabilization law work going by what you wrote. Why would a landlord charge more than what the market can bare? Explain that to me please? How does that make sense for him if he want to keep apartment occupied? Wouldn't charging more that market rent deter people from moving in? Think about it.