This rent increase for rent-stabilized tenants is a joke (cheap apartments, lease)
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We dont live in a perfect world where we can assume the number one expense is already paid off.
Well, if a LL claims that he loses money on the building because of the mortgage, then he shouldn't be complaining. When the mortgage gets paid off, he will be making money (although, of course, the rate of return might be very low).
There is a problem, though, where low rents bc of stabilization create buildings where the rent roll does not cover the expenses of keeping the building running (utilities, tax, maintenance, etc).
LL are trying to get paid, but they are limited on the amount by the market.
Of course a LL would try to put the highest amount possible but since he doesn't really decided the amount, lets give you an example.
A LL looks at apartments near him to see the how much the rent is going for that area he then he puts his price if he is above everybody else around him no one is going to take it, if he put it a the same price he will find someone but maybe in a month or so, if he puts it bellow he will find a person in a week.
not true. 99 gold street in brooklyn....right across the street from farragut projects.....places rent for $2000-$3000 a month there. here's the issue...nobody had a problem with rent stabilization in the '70s, and the '80s, even early '90s...but all of a sudden now its a problem....why? landlords are complaining that they're not making enough money, but who is responsible for that? i dont know maybe you guys need a stimulus check like GM...?
if there is no rent stabilization, the rent will rise, and you will force the lower and middle classes further away from the city. and homelessness will increase....the metrocards just went up today. what incentive is there for me to travel 90 minutes one way to work as a supermarket cashier? well hey nyc is now the playground for rich people, so let them have it.
you check it out, boston is the 5th least affordable city in the US now since rent stabilization ended, they used to be 11th....see what happens to nyc if we end it...lol.....return of the squeegee men.
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"The man who sleeps on the floor, can never fall out of bed." -Martin Lawrence
Well, if a LL claims that he loses money on the building because of the mortgage, then he shouldn't be complaining. When the mortgage gets paid off, he will be making money (although, of course, the rate of return might be very low).
There is a problem, though, where low rents bc of stabilization create buildings where the rent roll does not cover the expenses of keeping the building running (utilities, tax, maintenance, etc).
yeah, figure out that long term return... with a 30 year mortgage and typicallly 10% down the purchase price is roughly 2-3x the origional cost when the un-reimbursed interest is figured in
..nobody had a problem with rent stabilization in the '70s, and the '80s, even early '90s...but all of a sudden now its a problem....
if there is no rent stabilization, the rent will rise
Why do you keep saying that there was nobody who had a problem with it until the 90's?
In the 50's, 60's, and 70's there was abandonment, that's right, abandonment of buildings on a massive scale. In the 80's co-op conversion was the way out. And hundreds of thousands more rental apartments were taken off the market as a direct repercussion of rent controls. All of this reduced supply and raised market rents.
Listen, the way market rent is determined can be and has been explained in a thousand different ways. And the way rent controls increase market rent has also been explained in many ways. And it includes the citings on this thread of housing market experts. But there are some people (I hope not many) who can't, or won't, accept it. One factor is, I believe, a long time mistrust or dislike of landlords.
All we can do is hope that the general public wakes up to the ways in which rent controls are negatively effecting them and that they let their political representatives know how they feel.
Why do you keep saying that there was nobody who had a problem with it until the 90's?
In the 50's, 60's, and 70's there was abandonment, that's right, abandonment of buildings on a massive scale. In the 80's co-op conversion was the way out. And hundreds of thousands more rental apartments were taken off the market as a direct repercussion of rent controls. All of this reduced supply and raised market rents.
Listen, the way market rent is determined can be and has been explained in a thousand different ways. And the way rent controls increase market rent has also been explained in many ways. And it includes the citings on this thread of housing market experts. But there are some people (I hope not many) who can't, or won't, accept it. One factor is, I believe, a long time mistrust or dislike of landlords.
All we can do is hope that the general public wakes up to the ways in which rent controls are negatively effecting them and that they let their political representatives know how they feel.
abandonment? where? if you're talking about the bronx or harlem i have to laugh....dont tell me that was cause of rent stabilization...if that was the case abandonment would have been city-wide!
and textbook economics doesnt apply to real world problem.....forget supply and demand. it all boils down to people pay what they can afford. but like i said, abolish rent stabilization and you will see an increase in homelessness, squatting, and overall decrease in city services because the people who do the menial jobs will not travel 90 minutes one way to bag your groceries. go ahead
__________________
"The man who sleeps on the floor, can never fall out of bed." -Martin Lawrence
not true. 99 gold street in brooklyn....right across the street from farragut projects.....places rent for $2000-$3000 a month there. here's the issue...nobody had a problem with rent stabilization in the '70s, and the '80s, even early '90s...but all of a sudden now its a problem....why? landlords are complaining that they're not making enough money, but who is responsible for that? i dont know maybe you guys need a stimulus check like GM...?
if there is no rent stabilization, the rent will rise, and you will force the lower and middle classes further away from the city. and homelessness will increase....the metrocards just went up today. what incentive is there for me to travel 90 minutes one way to work as a supermarket cashier? well hey nyc is now the playground for rich people, so let them have it.
you check it out, boston is the 5th least affordable city in the US now since rent stabilization ended, they used to be 11th....see what happens to nyc if we end it...lol.....return of the squeegee men.
Ok, fine I can see how someone could be for stabilization for ppl who live in their units for many years, but what sense is there in keeping the rent stabilized after someone moves out? You just end up with the new tenant paying some "key fee" or the LL puts in someone he's friends with.
In the 80's co-op conversion was the way out. And hundreds of thousands more rental apartments were taken off the market as a direct repercussion of rent controls. All of this reduced supply and raised market rents.
You have mentioned the co-op conversions of the 70's and 80's as a major reason why market rents are high before but I am not sure it makes sense.
Yes,co-op conversions removed hundreds of thousands of rentals from the market but they must have simultaneously removed an equal number of renters from the market so don't the effects kind of cancel each other out ?
If NY politians decide not to either abolish Rent Stabilization or phase it out gradually, the Rent Stabilization system itself will self destruct and kill itself off evenually because it is poorly structured.
Let's fast foward into the future. About 15-20 years from now. The majority of the rent control tenants and rent stabilized tenants that pay very cheap rent will be gone or in their death beds by now.
Once these old timers are gone, the landlord is going to GUT RENOVATE the apartment and charge MARKET rent for it anyways. Wheather it's the fast, easy way by abolishing it right now or waiting several years from now for it to self destruct on its own, the end result is the same and will happen evenually. You can't stop it.
Rememebr, ONLY long time tenants benefit from Rent Stabilization. Not new tenants looking for apartments now.
Seventh Floor...by you defending Rent Stabilization, you are not benefiting from it or protecting yourself, you are protecting the old school tenants that already pay cheap rent. You don't fall under that category. You are paying $1,100 for a 2 bedroom apartment in Far Rockaway which by the way is a declining neighborhood, in a Mitchell and Lama development which is really an upscale public housing building (the projects) just like Tracey Towers is in the Bronx. Even though it may look nice on the outside and have a nice view, the people that live in there are of the undesirable type.
So techincally speaking, you are OVER PAYING for those living conditions.
Sorry, but I would NEVER pay $1,100 for an apartment in the projects even if it was a little more upscale than the typical projects. But hey that's me.
actually where i live now isnt rent stabilized and im paying 1050 utilities not included......where i am moving to is mitchell-lama and its 850 utilities included big difference....no "undesirables" around whatsoever...my wife is from the projects so trust me i know what projects is...and if you saw the complex, NYCHA is the last thing that would enter your mind.....but we are off topic.
but just so u understand me....either reform the system or leave it in place....but the worst thing to do would be to abolish it completely.....the '80s was a scary time in nyc and i dont want to go back to that.
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"The man who sleeps on the floor, can never fall out of bed." -Martin Lawrence
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