why many apts under 2000/mo yet not rent stabilized? (real estate, apartments) - New York City - New York (NY) - City-Data Forum

renter52 · 02-08-2010, 10:44 PM

How can ny apartments under 2000/month not be rent stabilized? I was told by real estate brokers that most apartments they would be able to show me wouldn't be stabilized even if under 2000/mo. Yet the law has this 2000 limit before can charge market rent. I would like to apply for scrie for my next apartment but can't if it's market rate. Can anyone explain why so many under 2000 apts can avoid stabilization?

mathjak107 · 02-09-2010, 01:42 AM

they are co-ops or condo's that people are renting out ... once the origional tenants move out and a building has co-op or condo status then they are no longer controlled or stabilized.

even if you found a stabilized apartment odds are its at market rate or close by now,. just because a building is stabilized dosnt mean your getting it at below market rate.. that below market rate only happened if you were in an apartment decades and caught the early years when rent increases were very puny ,,, once an apartment flips a few times today its at market rate and the increases today are a very real world 3% or so.

pureistheword · 02-09-2010, 05:22 AM

alot of times the legal rent ends up passing $2000 (which destabilizes the unit) at some point yet market rate could be 1600 for example and that would be the advertised rent

renter52 · 02-09-2010, 08:59 AM

thanks for replies. Does that mean that in the past an apt that's now 1600, did perviously rent for 2000 when the economy was better. Then the rent was progressively lowered to 1600 to get tenants. So it stays destabilized even tho rent under 2000 now? Or What? Seems strange. Is someone getting paid off, or does this just happen because of the system?

victorfox · 02-09-2010, 10:01 AM

Quote:

Originally Posted by renter52

How can ny apartments under 2000/month not be rent stabilized? I was told by real estate brokers that most apartments they would be able to show me wouldn't be stabilized even if under 2000/mo. Yet the law has this 2000 limit before can charge market rent. I would like to apply for scrie for my next apartment but can't if it's market rate. Can anyone explain why so many under 2000 apts can avoid stabilization?

The legal rent could have passed $2,000 per month but the market rent for the area could be below $2,000 so the landlord gives a preferential rent lower than the $2,000. This is a perfect example why deregulating apartments should NOT be feared by renters. All deregulation does is strip the strict and unfair RS laws from the unit which does NOT translate into higher rent despite what many pro-rent stabilization people think. The market determines the rent price, not the landlord.

bluedog2 · 02-09-2010, 10:50 AM

Another possibility: As I mentioned in a post on another thread recently,I have a friend who rented an apartment that she was told was " no longer stabilized " but found out after she moved in that it really is.In other words,she was lied to.She checked on the unit with the rent board and found out that the real maximum rent was almost $400.00 less than she had been told and signed a lease on.She took the landlord to court,got the rent rolled back to it's legal level and got a rebate(court ordered) for all of the money she had been overcharged.I have heard that this happens fairly frequently and I think the landlord's might also get fined for this when they get caught.
Bottom line...always do the research with the rent board if you have any question whatsoever about the actual legal rent on any apartment you might be interested in.Don't just take the word of a broker or a landlord.They might not be completely truthful.

victorfox · 02-09-2010, 12:36 PM

Quote:

Originally Posted by bluedog2

Another possibility: As I mentioned in a post on another thread recently,I have a friend who rented an apartment that she was told was " no longer stabilized " but found out after she moved in that it really is.In other words,she was lied to.She checked on the unit with the rent board and found out that the real maximum rent was almost $400.00 less than she had been told and signed a lease on.She took the landlord to court,got the rent rolled back to it's legal level and got a rebate(court ordered) for all of the money she had been overcharged.I have heard that this happens fairly frequently and I think the landlord's might also get fined for this when they get caught.
Bottom line...always do the research with the rent board if you have any question whatsoever about the actual legal rent on any apartment you might be interested in.Don't just take the word of a broker or a landlord.They might not be completely truthful.

That happens more often in Manhattan which is considered "prime real estate" than the outer boroughs.