Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
There are over a million rent stabilized units in NYC. I lived in one up until recently. A stabilized one bedroom is nowhere near $3,000.
actually that is false . there are stabilized studio's for 3425.00 right on chrystie st here in nyc.
STUDIOS -UNIT-708-Studio
$3,425/month
they are stabilized because the building falls under the 421a exemption . rents can be over 2700.00 and the building adheres to accepting rent stabilization voted increases in exchange for perks from the city for a certain period of time . today there are all sorts of stabilized programs for incentive purposes for landlords .
the point was to promote more rentals . the programs were designed to have more and better rentals built vs co-op's and condo's .
nyc and the boroughs have not had 1 traditional rental built since the 1970's .
only co-op's ,condo's , luxury and affordable housing projects were put up .
so to get more the city offered incentives like the 421a , j51 deals .
you get tax deals and financing deals to keep your building stabilized for the period of time for the program , but you start out with market rate rent .
there are other benefits that go with stabilization for tenants besides the rent .
our tenants in our central park co-ops who are original tenants and still stabilized made out like bandits . we bought out most of their leases over the years for 100k each , then we sold the apartments .
the 2 remaining tenants who didn't take it may have shot themselves in the foot .
my partners and i were selling the co-ops off because we wanted to retire , want no part of landlording in retirement and needed the liquidity to retire . so we offered the buy out offers .
well we sold enough off to retire so now we have pretty much taken the offer off the table . on the other hand they are boomers and may eventually retire and relocate but we will likely offer nothing .
the rent is near break even but at this point we did well enough with the others that it is irrelevant to us .
but those who did take the buyout got a nice 100k for something they did not even own .
Sheesh, what's the point of even being stabilized at that point? I didn't even know there were any studios going for that much anywhere in the city.
most of the 421a exemptions are all very expensive apartments and are in prime areas .
landlords took advantage of the perks ,while getting market rents initially and only having to abide by stabilization laws for an agreed upon time . then they revert back to open market when the perks stop . .
there was once a rent increase survey someone did recently on city data and surprisingly despite what those who live in certain area's saw , rent increases were pretty low . you can see big jumps in heavily populated areas and it skews the results for the rest of the country because those increases effect so many people at once .
The large apartment buildings pretty much all use software like Rainmaker LRO to determine renewal rates. They factor a number of things like current market rents, vacancy rate in your building and the neighborhood, moving costs, month of year of the renewal, etc. A bunch of things. It is designed to get every last dollar out of the rental unit. One thing they don't factor is how much of a pain in the ass you are.
Regular increases are more common in large apartments mostly because their software tells them to.
Small landlords with individual units factor how much of a pain in the ass you are. I generally do not do rent increases for existing tenants and mine are all well below market at this point. They are all great tenants so the tradeoff is worth it to me. When a tenant does move, I reprice at market rate. I am not alone on this, I talk to a lot of small landlords yearly and it is common.
Bottom line, if you are in a large apartment building, you are more likely to get annual rent increases. If you are in a rent control/stabilized area, you are likely to get the max allowed under that ordinance. However, if you have a private landlord, there is a good chance they will value your payment promptness and general overall upkeep of the property more than wringing every dollar out of you.
The large apartment buildings pretty much all use software like Rainmaker LRO to determine renewal rates. They factor a number of things like current market rents, vacancy rate in your building and the neighborhood, moving costs, month of year of the renewal, etc. A bunch of things. It is designed to get every last dollar out of the rental unit. One thing they don't factor is how much of a pain in the ass you are.
Regular increases are more common in large apartments mostly because their software tells them to.
Small landlords with individual units factor how much of a pain in the ass you are. I generally do not do rent increases for existing tenants and mine are all well below market at this point. They are all great tenants so the tradeoff is worth it to me. When a tenant does move, I reprice at market rate. I am not alone on this, I talk to a lot of small landlords yearly and it is common.
Bottom line, if you are in a large apartment building, you are more likely to get annual rent increases. If you are in a rent control/stabilized area, you are likely to get the max allowed under that ordinance. However, if you have a private landlord, there is a good chance they will value your payment promptness and general overall upkeep of the property more than wringing every dollar out of you.
Yes, sometimes, the cost of loosing a good tenants can be much higher than the win you get from increasing the rents. It's the same as in companies: it might be cheaper to give that raise to the employee, than loosing him and then invest time and money in rehiring someone else.
My rent will go up 1.5% in May and my raise in August will be 2.5% so I guess I can live with that.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
