rent

anonymous · January 2007

Hello. I just am curious about the living circumstances of other people living around the area. My apartment is around the edge of South Slope but the rent is rising so rapidly last couple of years I wonder how people would even afford to live around here anymore. How about yours?

sarajean8 · January 2007

Mine too. I live on 7th and 15th and my rent went up $400 in the last 2 years!!! $100 the first year (which I could handle)... $300 the last, which I found out could be the cause of a "preferential increase". I fear what will happen this year. I love my place and have put a lot of energy into it's decor so I'm not ready to move QUITE yet. Plus, I'm not sure where I'll wind up with these rents on the rise.

apollonia666 · January 2007

FYI, I think this post was mistakenly tagged as an event listing for the calendar, so I edited it to be a regular post.

pitu · January 2007

a "preferential increase"

that's the second time I've heard that in as many days
the other was my pal in prospect heights getting the rent jacked up after seven years, for that reason

anonymous · January 2007

Subject: thanks

Hi apolloniaa666, thank you very much.

sarajean8 · January 2007

pitu wrote:
a "preferential increase"
that's the second time I've heard that in as many days
the other was my pal in prospect heights getting the rent jacked up after seven years, for that reason

At least I'm not alone. All of my friends who live in either Manhattan or Brooklyn have not experienced any major increases in their rent this year.

It's a very unsettling feeling. Can my LL only raise it a "normal" percentage this year now that he has my place up to speed with market rents??

anonymous · January 2007

You live in a rent stabilized apartment where the monthly rental rate was below the maximum legal rent.

What he did was raise the rent to the maximum allowed by law. Be happy though, from now on the rent can only be raised at the level prescribed by the rent guidelines board.

sarajean8 · January 2007

That is a relief. I'll still be able to stay in my apt if the rent increases GRADUALLY from now on. thanks for the info.

cythren · January 2007

I have a "preferential rent" too. There are two amounts written on my lease: the market rate and the rate they are renting it to me for. I got the lower rate because I live in a lower-income area - not PS. Once they raise your rent to the market rate, the rent will only increase by the percentage allowed by the rent stabilization laws. The percentage can change every few years, though. Once your rent reaches $2000. per month, you no longer have a rent stabilized apartment, and the landlord can raise the rent as much as he wants.

anonymous · January 2007

$300 increase is just so shocking but at least it is one time thing...good for you. Mine increased 8% this year and will probably keep increasing because it is not rent stabilized...It seems like it is getting harder and harder to live in the area for non-millionairs like me! All the new constructions are "luxury condos" as well.

MOD · January 2007

How do you figure out what the market rate is for your apartment? Is there a website?

Does anyone have the figures for a 1,2, or 3 bedroom apartment market rate in PS?

sarajean8 · January 2007

cythren wrote: Once your rent reaches $2000. per month, you no longer have a rent stabilized apartment, and the landlord can raise the rent as much as he wants.

is that really true? :shock:

sarajean8 · January 2007

Mamacita wrote: How do you figure out what the market rate is for your apartment? Is there a website?

Does anyone have the figures for a 1,2, or 3 bedroom apartment market rate in PS?

this site is GREAT: http://www.rentometer.com/

Mine happens to be right at the market rate, not under or over. Try yours!

cythren · January 2007

From what I understand, with apartments that are rent stabilized, th market rate is set by whatever agency or board determines the rate. What your apartment's legal rate is depends on a lot of factors, including the amount of time the tenant has held the lease, and whether the landlord did significant renovations to the place before you moved in. The market rate is what is listed on your lease. If you have a "preferential rent", the amount you are paying will be below the market rate, and will also be listed on your lease.

It's true that once an apartment reaches $2000. monthly rent, it is released from the rent stabilization regulations. Then, the landlord can charge whatever the heck they want to.

I may be wrong, but I think that with non rent-stabilized apartments, the market rate is whatever the landlord can convince some poor sucker to pay for the place.

escap · January 2007

sarajean8 wrote: [quote=Mamacita]How do you figure out what the market rate is for your apartment? Is there a website?

Does anyone have the figures for a 1,2, or 3 bedroom apartment market rate in PS?

this site is GREAT: http://www.rentometer.com/

Mine happens to be right at the market rate, not under or over. Try yours!

That is definitely a great resource. Looks like the data is still somewhat thin, but will most likely become much better very quickly as people keep using it. Thanks!

treetopview · January 2007

sarajean8 wrote: [quote=cythren]Once your rent reaches $2000. per month, you no longer have a rent stabilized apartment, and the landlord can raise the rent as much as he wants.

is that really true? :shock:

Only if your income is above a certain level (i think it is 175k) for 2 consecutive years.

raw · January 2007

What does "preferential increase" mean?

cythren · January 2007

TreetopView wrote: [quote=sarajean8][quote=cythren]Once your rent reaches $2000. per month, you no longer have a rent stabilized apartment, and the landlord can raise the rent as much as he wants.

is that really true? :shock:

Only if your income is above a certain level (i think it is 175k) for 2 consecutive years.

That's right - and also when an apartment that costs $2000. or above per month becomes vacant, it's automatically removed from rent stabilization.

sarajean8 · January 2007

TreetopView wrote: [quote=sarajean8][quote=cythren]Once your rent reaches $2000. per month, you no longer have a rent stabilized apartment, and the landlord can raise the rent as much as he wants.

is that really true? :shock:

Only if your income is above a certain level (i think it is 175k) for 2 consecutive years.

well my income is no where near that!

pitu · January 2007

cythren wrote: [quote=TreetopView][quote=sarajean8][quote=cythren]Once your rent reaches $2000. per month, you no longer have a rent stabilized apartment, and the landlord can raise the rent as much as he wants.

is that really true? :shock:

Only if your income is above a certain level (i think it is 175k) for 2 consecutive years.

That's right - and also when an apartment that costs $2000. or above per month becomes vacant, it's automatically removed from rent stabilization.

The two rents on the lease "preferential" thing seems like such a scam to me. (That's what my friend has too.) If the higher amount was the *actual* marketrate when they rented it, that's what the LL would have charged them. He couldn't get away with it at the time (since it was actually above what the market would bear.) It was more like a future-gentrification-LL-insurance-policy in the lease.

Tenant.net wrote:
1. If the unit is vacant and the rent is above $2,000, then the unit can be decontrolled immediately (on the next rental).

2. If the unit is occupied and the rent is above $2,000, and your income is at or above $175,000, then the owner can apply to DHCR for luxury decontrol. That is a process in which the tenant must respond in order to protect their rights (if the tenant does not respond, even if the household income is less that the trigger point, DHCR has been known to decontrol the unit anyway).

anonymous · January 2007

I think if your income is above $175k, you would not need to worry about rent so much...in any case, it seems like it will be very difficult to find a rent-controled apartment around the area in the future because 1) people who are already in would not move that often, 2) many of the rooms are reaching $2000 --with this crazy market appreciation in PC area--sooner or later. I wonder if that $2000 thing is adjusted to the infration rate or market rate,?? By the way, that link posted is actually really interesting! Thank you.

pitu · January 2007

The $2000 limit has been in place for decades, unchanged.

There's also less rent-control in PS because there's more 1-3 unit, owner- occupied brownstones, which are not rent-regulated.

anonymous · January 2007

I can't complain. I live off 7th in prime slope in a rent stabilized brownstone which according to rentometer is 400 bucks below market rate. i think it depends on the landlord/leasing company. My building is owned by a leasing company owned and run by one guy who also owns a ton of other buildings in prime slope and brooklyn heights so he doesn't seem too concerned with raising rents. My rent went up $11 last year. I dont understand preferential increase though..

anonymous · January 2007

An apartment will remain rent stabilized even if the rent rises above $2,000 while a tenant remains in occupancy and household income is less than $175,000 for the two previous years. However, as the rent reaches $2,000 or more, the owner has a right to petition the NY State Division of Housing and Community Renewal to deregulate the apartment. Complete information on this can be found in the Decontrol/Destabilization FAQ section.

http://www.housingnyc.com/html/resources/faq/rentstab.html#when

cat · January 2007

Subject: $2000 limit not in place for decades...

pitu wrote: The $2000 limit has been in place for decades, unchanged.

There's also less rent-control in PS because there's more 1-3 unit, owner- occupied brownstones, which are not rent-regulated.

actually this came into place during the pataki/giuliani years - the 'once rent gets above $2000 (and landlords will try all kinds of scams to get there!), the rent is unregulated' is a recent innovation, a 'bone' thrown to the landlords.

if i'm understanding what you were responding to...

doctorj · January 2007

gretch wrote: It seems like it is getting harder and harder to live in the area for non-millionairs like me! All the new constructions are "luxury condos" as well.

Surely renters should be glad about the glut of "luxury condos" coming onto the market; they're barely moving as far as owner-occupiers goes, which suggests greater rental supply overall in the medium term and a slowing in rent hikes, though it'll take a little time to filter through the system. Give it a couple of years.

anonymous · January 2007

Anonymous wrote: An apartment will remain rent stabilized even if the rent rises above $2,000 while a tenant remains in occupancy and household income is less than $175,000 for the two previous years. However, as the rent reaches $2,000 or more, the owner has a right to petition the NY State Division of Housing and Community Renewal to deregulate the apartment. Complete information on this can be found in the Decontrol/Destabilization FAQ section.

http://www.housingnyc.com/html/resources/faq/rentstab.html#when

If your apartment is over $2,000 a month and still in Rent Stabilization, there are many reasons for that. The owner gets R.E. Tax abatements called J-51 for building wide improvements. If the unit is de-regulated, the owner loses that percentage of the abatement.
Also the owner can de-regulate the unit when it reaches $2,000 a month and is vacant.
The income threshold has risen to $200,000 annual income for two years.
Spitzer wants this limit raised even more.
As to preferential rent. If your unit is at preferential rent for 4 years, the owner has the option to increase it to the market rate. That law was passed in 2004.
Rent regulations is a political football, and unfortunately affects so many lives.

nykittyny · January 2007

Market Rate: Whatever is typical of NEW leases being signed, and whatever a landlord can convince someone to pay.

Rentometer is fun as a novelty, and to give you an idea of where your rent should be, but it doesn't take many things into consideration. Laundry, dishwasher, renovations, outdoor space, square footage, etc... all these things can greatly affect rents in NYC.

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