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For each $1k in rent 4% equals $40 more each month. For each $500 that's $20 more each month.
For 2% increase numbers would be half, but can see how some might be getting nervous.
It's a Catch-22; two year renewal leases often provide stability and certainty that comes from locking in a rate. OTOH tenant will be paying that higher number for 24 months.
Those paying > $2k in rent will see largest jolt from all but smallest increases. Presumably Albany knew what it was doing by eliminating luxury decontrol. This and both upstate along with city also know what they are doing regarding 130% and above AMI rents that often are well over $2k per month.
Just few years of increases along these proposed lines and good number of RS units will see rents near or equal market rate. Thing is landlords have flexibility with market rate units that are off table largely for RS. MR tenants can try to negotiate lower rents, but for bulk of RS units legal rent is what it is. Either agree to increases or bust a move elsewhere.
Yeah this is true for a lot of the recent 130AMIs I’ve seen. A lot are only a couple hundred dollars away from market value rentals. The lower the percentage the better for us renters
The Final Vote, when final guidelines will be adopted, will be held in-person on Tuesday, June 21 beginning at 7:30 P.M at Cooper Union. The meeting will also be streamed via our YouTube feed (https://www.youtube.com/RentGuidelinesBoard).
Already did a thread on that, and my guess is it won't impact RGB's votes much. They've already taken things down from the 9% that had people howling in anger and or with worry.
Bottom line is LL's costs have gone up quite a bit, and for too long they've been made to eat those costs by RGB passing puny to nil increases. As that report clearly mentions maintenance of buildings has decreased, more RS tenants are reporting all sorts of issues ranging from vermin to repair compared to market rate, and so it goes.
Report also covers fact there is a not small number of RS apartments being held off market. Many of those units are were rents are too low and LL cannot justify repairs/renovations to bring them up to standard by what rent would be, so they sit empty.
For some people nothing but zero increases or rent rollback will suffice; neither is going to happen next month IMHO.
Oh and other thing mentioned in report is contrary to popular belief bulk of rent regulated tenants are minorities (blacks and Latino/Hispanic), with a good number of those "poor". That is they are paying one-third or more of monthly income towards rent.
Best deal with rent regulated units (at least old school) are in Manhattan and usually below 125th street. In many other areas of city legal RS rent is actually more than market rate, that was one reason why preferential rent was created, but that's gone now.
NYS created this hot mess known as rent stabilization decades ago, and even though it creates all sorts of distortions and problems democrats keep doubling down on that bet.
Problem is RS is just that, it doesn't "control" rents and that is where problems start. Too many in RS units simply cannot afford current rent much less any sort of increase no matter how small.
Looks like the final vote is this evening. Has anyone been following this closely and know if there have been any updates since they've been doing public hearings and receiving public comments? Is it still looking like the accepted proposal from before will likely be the final proposal?
My best bet will be between 2% & 2.5% for one year, between 4% & 4.5% for 2 years, no more than those percentages.
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