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Right; emphasis on small landlord. That's not what the typical landlord in a major metropolitan area is, and those are the areas where rent control laws are still in existence. A smaller LL is probably not going to be concerned about maximizing profitability at all cost versus a more typical urban landlord, who has hundreds, if not thousands, of units.
small landlords for sure have let rent increases slide . i have done it myself at times . the big guys just roll right across the board with any increases. they do not care if they lose one out of hundreds of tenants they may have.
but for the little guy having a good dependable tenant and all your rental income wrapped up in one or 2 tenants makes having a good consistant tenant at the top of the list.
i have been a real estate investor for 25 years in nyc. not just manhattan but queens too. i have never been much of a landlord looking for income.
i go for special situations like owning prime c0-op apartments and buying out origonal tenant leases so we can sell the apartments.
i also like owning lease rights on commercial property. we just sold our lease rights on some commercial property in manhattan for a staggering amount.
A lot of people in rent controlled situations are in no position to purchase. The vast majority of people in NYC can't afford to buy something. 50k isn't going to do much for you when the cost to buy a small apartment is 1 million dollars.
Most jurisdictions have been slowly phasing out rental control with some switching to rent stabilization. For instance, in the 70s, NYC had over a million rent control units and that's now dropped to under 40,000.
most of the time it is rent satabilized that people mean when they say rent control. at this stage rent controlled apartments are just about a thing of the past.
A lot of people in rent controlled situations are in no position to purchase. The vast majority of people in NYC can't afford to buy something. 50k isn't going to do much for you when the cost to buy a small apartment is 1 million dollars.
do not ever confuse being rent stabilized or rent controlled with a persons income or especially net worth.
it has nothing what so ever to do with finances ,only the length of time you live in the apartment. our tenants are worth more than we are.
not only do we own stabilized apartments in manhattan but we live in one in queens where my wife has lived for 30 years now..
so far all of the buyouts were with tenants who want to retire and relocate. with baby boomers now retiring or dying lease buyouts have been very popular.
Last edited by mathjak107; 06-07-2014 at 05:47 AM..
Willow wind is talking about 15CPW. The tenants living in the previous building there, the Mayflower hotel, were all bought out, with the last few given million-dollar buyouts; and the last one was paid out $17M PLUS had a $2M condo in another building on CPW purchased for him to live in until he died, rent-free. You can pick up Michael Gross' book on the history of 15CPW "House of Outrageous Fortune" if you'd like to read more about it.
HAHAHAHAHAHAHAHAHA.
I don't mean to be rude but that might be possibly the funniest thing I've ever read.
You do realize that the whole reason rent control laws even exist is precisely because landlords were routinely taking advantage of renters?
And as for LLs just skipping the rent increase... that's just laughable to the point of crossing over into farcical territory. Maybe you might have a small-time owner here and there not increase rent because they're more interested in stability as opposed to increasing their cash flow, but, at least in major urban areas, that does not fit the description of the average LL. NYC, for example, has seen nothing but record increases year-over-year since 2010; avg rent for an apartment has gone from approx $2400 in 2010 to $3150 currently. You're telling me that a LL would be willing to forego that kind of profit?
The reason rent control laws exist is because market conditions created a housing demand that exceeded the supply thus causing rental prices to rise, and landlords responded to the market. In a free market the fair price of any commodity is the price that finds a willing buyer and a willing seller. In a Marxist market the government decides everything centrally.
The reason rent control laws exist is because the renters got their socialist government to enter the issue and eliminate free market forces. This results in landlords spending as little as possible since their profit line has been cut because renters outnumber landlords and have more pull with the socialist government.
I'm a landlord in a small city you may have heard of, Phoenix, owner of four houses (the last two closing escrow this month). I have already made up my mind that renter #1 (started two months ago with 2 year lease) is not going to get any rent increase when she goes monthly, and renter #2 (started this month with 1 year lease) is also not going to get any rent increase when he goes monthly.
Why? Because Phoenix has a free rental market where properties rent at the price that a willing renter and willing landlord can agree upon. That keeps rental prices fair without requiring a Marxist government to intervene.
As a result I'll do anything within my power to keep my tenants happy, and I'll be pleased if they stay a very long time. Yeah maybe in a few years I may have a small rent adjustment, but only to keep track with inflation. I'm not greedy and I appreciate good tenants.
Add to that the fact that when a renter moves I have a vacant unit for at least a month, a bunch of cleaning and possible painting and repair, and even if it's vacant only one month my rental agent takes the first month's rent as her commission, so at minimum changing tenants is going to cost me two months rent plus renovation costs, maybe even three months lost to vacancy.
I'll take my market over your Marxist market any day. Your market is what causes slumlords and causes capital to flee your market and depress your economy. Phoenix is growing, and in part that is due to Californians of had had enough of California's socialistic government interference in the free market.
Right; emphasis on small landlord. That's not what the typical landlord in a major metropolitan area is, and those are the areas where rent control laws are still in existence. A smaller LL is probably not going to be concerned about maximizing profitability at all cost versus a more typical urban landlord, who has hundreds, if not thousands, of units.
I'm a small landlord with less than $1M invested in my business, just four units. I guess Phoenix is open to interpretation as to whether or not it is a major metropolitan area.
Most jurisdictions have been slowly phasing out rental control with some switching to rent stabilization. For instance, in the 70s, NYC had over a million rent control units and that's now dropped to under 40,000.
What is the difference between rent control and rental stabilization?
The reason rent control laws exist is because market conditions created a housing demand that exceeded the supply thus causing rental prices to rise, and landlords responded to the market. In a free market the fair price of any commodity is the price that finds a willing buyer and a willing seller. In a Marxist market the government decides everything centrally.
I'd like to elaborate on that a bit. As rental prices rise landlords would demand builders create more housing because their business became more profitable, and more housing units would increase the housing supply and cause supply and demand to level off at an equitable price.
Rent control exists because renters don't want to pay a fair price for their rent. And don't tell me it's "too much." "Too much" doesn't cut it with me. It's too much because you live in a screwed up economy.
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