something fishy with rent stabilization?
Comments
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if they did any renovations, they can apply to have that incorporated into the increase when a new tenant signs a lease. it's still stabilized but at a higher rate.
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I think that it can also go up more with a change in tenants...
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I used to know people who went through elaborate lawsuits and city records research to get their rents back down to the legal limit . . . but that was for places that jacked up from $300 to $1300 in lightning speed.
The forums on tenant.net would be the place to find out where you get those kind of records, and what the legal increases are, etc.
It's a debatable point as to how worth your time that process is, but you never know until you get better information.
My recollection is that any new lease - so new tenants included - gets the increase, as well as renovation factors. -
There is a vacancy increase of 20% for a new two year lease or approximately 17% for a one year lease (this is determined by 20% - the difference between the year's increase for a 1 or 2 year lease, usually around 3%).
On top of that the rent can be increased by 1/40th of any improvements made. Also, any building wide improvements that qualify for Major Capital Improvement increases can be applied. These increases can occur mid lease but are capped each year until the entire increase is applied. When a tenant moves out any unused increase can be applied all at once.
If your apt is a total dump with 20 year old kitchen and bath then they might have fudged the numbers. However, if any work was done before you moved in it is probably in line. -
just noticed these helpful links in another thread...
digbklyn wrote: Two places to check before renting: HPD Online for housing violations on the building
http://nyc.gov/html/hpd/html/pr/violation.shtml#proceed
and ACRIS for the property records:
http://a836-acris.nyc.gov/Scripts/CoverPage.dll/index
With ACRIS, use the Address Finder to find your Parcel Number and then Property Records to look up the financial history of your building. Also use Property Search by your landlord's name to see what else he/she owns and go back to HPD Online to look up violations on any other buildings. -
What is the difference between rent stabilized, rent subsidized and rent controlled? Anything?
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BrookFetish wrote: What is the difference between rent stabilized, rent subsidized and rent controlled? Anything?
Huge difference actually. Rent stabilized is for most apts in larger buildings, 6+ units. You are basically guaranteed a lease renewal and the amount that the rent can go up each year is regulated.
Rent control is only for people who have lived in their apartments from before the early 70's. There is a different set of guidelines for the increases. There's also a difference in how the apt can be passed down to family members.
Subsidized would be any person or building that is under a special program. It could be that an individual is receiving Section 8 assistance to help pay their rent but that is tied to the individual. Some buildings took funds from the gov't for renovations and agreed to keep the entire building in the section 8 program so then it is tied to the building. There are many other programs that exist where owners received money or low interest loans to rehab their properties and as a result must offer rental rates below what the market would charge.
The most common form of this these days is giving a developer tax breaks or the right to build more if they set aside a percentage of units for lower income people. So in effect, the city is subsidizing these units by giving the owner something else and the owner agreeing to not charge more than a certain amount of rent.
For subsidized units you will need to first qualify from an income perspective and then be selected, it's usually a lottery system.
Hope this helps. -
Subject: hm
called the city, they said my rent 3 years ago was actually 992 and thus the increase was legal.
also it is chock full of "improvements" ie a dishwasher and new kitchen coujnter tops -
Subject: Re: hm
brooklynleather wrote: called the city, they said my rent 3 years ago was actually 992 and thus the increase was legal.
Sounds like your LL could have charged you a bit more than you've been paying. If so you have a preferential rent which means the legal rent is higher than what you are paying. If this is documented on your lease the LL actually has the right to increase your rent up to the legal rent on lease renewal.
also it is chock full of "improvements" ie a dishwasher and new kitchen coujnter tops -
If so you have a preferential rent which means the legal rent is higher than what you are paying. If this is documented on your lease the LL actually has the right to increase your rent up to the legal rent on lease renewal.
"Preferential rent" reads to me as "we can't get anyone to pay this princely sum now, but we're getting ready to pounce when the market allows"
Which hardly seems fair to me, like saving a place in line for an undetermined date.
Ben, you've been fantastic, giving helpful accurate answers, and I'd like to hear your take on this practice. Am I understanding it correctly? -
Yikes.
I just can't fathom 1,150 (rent increase) for 275 square foot "1 bedroom" (studioish walkthrough).
I am going to miss you prospect heights! -
pitu wrote:
Well, I guess I would say that you understand the way it works although your interpretation of what LLs are thinking is slightly biased.If so you have a preferential rent which means the legal rent is higher than what you are paying. If this is documented on your lease the LL actually has the right to increase your rent up to the legal rent on lease renewal.
"Preferential rent" reads to me as "we can't get anyone to pay this princely sum now, but we're getting ready to pounce when the market allows"
Which hardly seems fair to me, like saving a place in line for an undetermined date.
Ben, you've been fantastic, giving helpful accurate answers, and I'd like to hear your take on this practice. Am I understanding it correctly?
Keep in mind that the legal rent increases 1) yearly as operating costs go up as determined by the Rent Guidelines Board, 2) when turnover occurs, and 3) when improvements are made to either the unit or the building.
All three of these cost the LL money and the rent increase is designed to recoup that money spent. So in the case where the market will not bear the full legal increase the LL is losing his/her ability to recoup these costs. The LL is not able to recoup these costs by raising rents on other units but rather must wait until the market catches up with the legal rent on that particular unit.
Regarding fairness, I think the large majority of landlords would tell you they think it is unfair that they are not allowed to charge a market rate for their units. But that's a whole other discussion that has been talked about to death so I'd rather not get into it. -
brooklynleather wrote: Yikes.
I just can't fathom 1,150 (rent increase) for 275 square foot "1 bedroom" (studioish walkthrough).
I am going to miss you prospect heights!
if it's actually in PH and not CH --- this is low. (sorry).
a building a few doors down from mine has the same set-up, basically a 2 room studio maybe 300 square feet for $1375 - i don't think it's an eat-in kitchen (or barely so). also::: just off washington in CH, my friend lives in a building of 2-room studios and although they are floor-through 2-room studios (still about 300 sqaure feet), 2 apt.'s are between $1300-1400 and one in the building just rented for *** $1700 ***. people from manhattan think this is cheap and for the rest of us who don't work on wall street (or $whatever$), it totally sucks.
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