Landlords Jacking Up Rent 50-70% (Inwood, Boston: low income, transplants, real estate)
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As a landlord for decades I never had a bank ever dictate a minimum rent level
I'd wager that you also weren't taking out 10's-100's of millions in loans. I didn't express myself correctly in the last post. The banks can't really dictate pricing per see. That's illegal.
What they can dictate is your interest rate/penalties based in certain metrics. LLs are free to take the hit but as as always there are loopholes.
When the landlord borrows to buy the property, the lender will include "covenants" in the loan. There are many, covering lots of things (e.g., the landlord promises that the LLC making the purchase is properly constituted), but often these days there is a covenant not to drop the official rent roll below a certain amount. This is because the property value is usually highly dependent on the value of the rent roll. The lender doesn't want the value of the property to drop because it's the collateral securing the loan. If the landlord violates the covenant, it can go into default on the loan.
Concessions like a free month's rent generally don't count. This is why you can exaggerate the "rent drop" and "rent bounce" if you compare the concessions-adjusted rent at one point and the nominal rent at another.
This is also why people telling you that the rent reflects the free market aren't really being accurate, unless you think the "free market" should include the lender imposing rent floors on the landlord as an invisible force the tenant can do nothing about.
Seems not? Substantial versus there were many that can't drop it by the aforementioned half officially? How is that contradictory? Is it in question format because you literally don't know? Doesn't change that you couldn't read or understand the article and that there was no claim that prices in NYC have generally gone back to pre-covid levels? Doesn't change that even if the official cut isn't as large as effective rent cut from free months it's still different from saying there were very few, if any (LOL!), official cuts during the pandemic which is just an amazing thing to say? You probably will never work on an actual rocket to low-earth orbit and it really is beyond your ability but at least you're a certified Trader Joe's expert from five years of shopping there and are obviously an expert on the rental market because you had paid years of rent? You'll make another account and cheer yourself up a bit?
Last edited by OyCrumbler; 09-16-2021 at 03:21 PM..
Does this mean that many NYC buildings will be getting a better class of tenant? What happens if the Supreme Court eventually throws out all Rent Stabilization and related laws as unconstitutional?
I'm a NYC homeowner but the rental market does indirectly effect the home market.
"What happens if the Supreme Court eventually throws out all Rent Stabilization and related laws as unconstitutional?"
I can tell you what happened in Boston and Cambridge, which abolished rent control in 1995--the rents shot up and life there got that much more miserable.
Building permits and renovation permits sky rocketed when stabilization ended ..
Old apartments were gutted out and made new again ….many of the old dingy apartments you wouldn’t want to live in yourself were revitalized and NEW COST MONEY .
So yeah , rent went up, so it was no longer comparing what was to what is
Looks like Queens rental market is selectively roaring back -
Quote:
Queens has seen its highest-priced tier of rentals — or homes priced more than $2,500 per month — recover 99% of its pre-pandemic highs, according to just-released data from real-estate portal StreetEasy. That makes this borough’s high-end rental market the first in New York City to reach recovery in the wake of COVID.
Overall, when compared to Manhattan and Brooklyn, Queens still remains relatively more affordable. Queens’ median rent was $2,200 in July — whereas for Manhattan it was $3,000 and, for Brooklyn, $2,600. The report does not mention The Bronx or Staten Island.
I can understand not covering Staten Island with it's small rental market. But how can StreetEasy not cover the Bronx with it's huge numbers of large apartment buildings?
"Old apartments were gutted out and made new again ….many of the old dingy apartments you wouldn’t want to live in yourself were revitalized and NEW COST MONEY ."
Yeah, I'm quite sure that the rent only reflected cost of renovations. Landlords are notorious for being restrained like that. BTW, I've got an NFT I want to sell you.
Does this mean that many NYC buildings will be getting a better class of tenant? What happens if the Supreme Court eventually throws out all Rent Stabilization and related laws as unconstitutional?
I'm a NYC homeowner but the rental market does indirectly effect the home market.
Oh well, sometimes you eat the bear, and sometimes the bear eats you.
Anyone who believed those fairy stories about how cities (including New York) were dead as people fled because of covid are getting their faces cracked.
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