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October 31, 2005

Hellish Landlord Drawing Protest in the Slope

houseA three-story building at 152 Fourth Avenue between Douglass and Butler is drawing attention for the particularly negligence of its landlord, Gustav Rodriguez; another four buildings owned by Rodriguez have also drawn similar complaints. Among the complaints: Peeling paint, no heat and "an overwhelming stench of sewage in the halls." The building had 40 tenants last year and now only 8 are left, prompting charges that the landlord is doing everything he can to rid the building of its rent-stabilized tenants so he can cash in on the Fourth Avenue boom that's underway. A protest rally is scheduled for today outside the buildings.
Tenants Rally vs. Hell Buildinh [NY Daily News] GMAP




Comments

Wow. His first protest. That's sort of like a coming out party for a landlord. You aren't really a landlord until you've had your first protest.

Posted by: Shahn Andersen at October 31, 2005 9:47 AM

Actually, these buildings were for sale a couple of years ago as a development site. Aparently, he wasn't able to sell the buildings and held on to them. I'll bet some vulture developer will see this as a great time to swoop in and buy these from this guy.

Posted by: No-One at October 31, 2005 9:50 AM


If the tenants don't like living there, they should move. America isn't a communist country, is it?

Posted by: Anonymous at October 31, 2005 9:52 AM

America's also not an anarchist country. If the landlord doesn't like the fact that America is governed by laws, he should move.

Posted by: linusvanpelt at October 31, 2005 10:23 AM

I used to live right around the corner from that building on Douglass. Pretty horrible. I don't suppose it will make much difference to 9:52 anon, but the people who live there certainly won't have any other options in the neighborhood.

Posted by: Katy at October 31, 2005 11:11 AM


Rent stabilization is the most not American thing that had ever happen to America.
It is unfair and creates unhealthy situation like this. The worst is press; it is allways hellish landlord and they newer can see problem as a whole.

Posted by: malymis at October 31, 2005 11:43 AM

Well said linusvanpelt

Posted by: Anonymous at October 31, 2005 11:53 AM

"The worst is press; it is allways hellish landlord and they newer can see problem as a whole."

What a dumb statement. I am sure if you did a lexis search you would find plenty of news stories on the problemsof rent control. Every article the media does need not be an indepth analysis of the problem. This article, like many news articles, is merely relaying something that is happening in the city so that you can know about it. That's all. If it did what you think it should it would need to be many thousands of word longer.

Posted by: w at October 31, 2005 12:01 PM

There is definitely a tendency to take tenants side in the press and in court. It is all i wanted to say and i don’t see anything dumb about that. Apologize or prove me wrong.

Posted by: malymis at October 31, 2005 12:08 PM

I have a love/hate relationship with rent stabilization, while I consider myself a pro-free market type individual, I can understand the necessity for rent stabilization in that the problem will be too hard to reverse now.

Posted by: stuy blkbuttrflie at October 31, 2005 12:48 PM

What necessity for rent stab? After war housing emergency ?
But i agree it is hard o revers it is like a drug addiction. We need good rehab.

Posted by: malymis at October 31, 2005 12:53 PM

well... on some levels it is important to ensure that people have affordable housing outside of the projects so I think the principle is good I just don't think the way in which they're doing it is really effective its like putting a band-aid on the problem. I suppose economically if there was a free market this wouldn't be an issue since in theory people wouldn't pay excessively high prices and there would be "fair" (for lack of a better phrase) housing prices but rent stab kinda screwed that up and the cycle goes on and on... which is why its almost irreversable.

Posted by: stuy blkbuttrflie at October 31, 2005 1:06 PM

The value of rent stabilization is that people don't have to move out of a neighborhood that they have provded value to when forces beyond their control start moving rents up. There is nothing un-American about that, and I would say that most people would see the value in that.

The real issue, that nobody seems to bring up for either side, is that, if we agree that there is value in providing housing stability for renters, then shouldn't we all be paying for that (not just landlords)? If we were to allign the incentives so that landlords weren't bearing the brunt of this, then the dynamic changes quite a bit, and many of the standard arguments are no longer valid.

And, having done a major research paper on this topic, I can tell you with some degree of certainty that the mainstream press is overwhelmingly anti-rent regulation.

Posted by: grendel at October 31, 2005 1:12 PM

you make a compelling point but we don't reap the benefits that landlords get for owning a building and its obvious that they exist because if that weren't the case then they wouldn't own the building in the first place. as far as I'm concerned you have to take the good with the bad, I don't agree that the general public should help to bear the brunt of the backlash that landlords get. and what are these incentives that you speak of?

Posted by: stuy blkbuttrflie at October 31, 2005 1:18 PM

People have right to own property. It is core American idea. You own property but city bureaucrats and tenants will tell you what to do with it.
That is not American to me.
I grow up it communist country and we always look up at certain American values.
Rent stab was not one of it.

Posted by: malymis at October 31, 2005 1:30 PM

To Grandel
Maybe more sophisticated press understand the issue but in NY post and low-endish papers you can always read about evil landlords, big rats and poor tenants.

Posted by: malymis at October 31, 2005 1:42 PM

"low-endish paper" is a bit generous/incorrect. glorified tabloid would be more appropriate.

Posted by: stuy blkbuttrflie at October 31, 2005 1:46 PM

When you are dealing with food, shelter and health and safety it is government role to ensure
that some level of basics is met or danger of breaking 'social contract'.
Private property/ownership rights are not absolute and certain limits to these rights are enacted just as they are to individual rights.
If people/gov't decide that 'rent controls', 'zoning limits', or whatever else is in the greater societal good than it has power to do so. Those are American values like it or not.

Posted by: Anonymous at October 31, 2005 2:03 PM

I find it very odd that whenever I see a story like this, the discussion rapidly turns into the pros and cons of rent stablization, or "move if you don't like if we are not communists". Such "arguments" have no bearing on whether the landlord is following the law, and are simply a crock. A landlord has obligations, by law, to the tenant, and the landlord must follow the law, if said landlord breaks that law, then that landlord should be placed in jail like any other lawbreaker.

Posted by: liekiller at October 31, 2005 2:08 PM

To liekiller
True
It is a law and Landlord hast to follow, no doubt. But it is a good law this is a real issue. In my opinion is wrong and unfair, we all are end up paying for someone cheep housing and it is not always people who need it the most.
Your free market apartment is more expensive because of this, unless you have rent stab and someone is paying for yours.

Posted by: malymis at October 31, 2005 2:26 PM

to stuy blkbuttrflie

You right it must be a balance
But if someone live in your house and you have no control over, it is a little to far don’t you agree?
Housing is commodity like gas or food and should be treated like that. When government starts to control it is usually no good, i know it from experience.

Posted by: malymis at October 31, 2005 2:38 PM

malymis, good point but people are protected against price gauging for gas. however, like I said I'm a big supporter for free markets so I understand where you're coming from.

Posted by: stuy blkbuttrflie at October 31, 2005 3:06 PM

Sorry - Housing is not a commodity.
It is basic human need and if government of the people decides it must intervene to meet that need than that triumphs.
That does not mean that rent-control is right/best choice. You can debate freely its pro's and con's. But we do not (or at least try not to) ignore human needs to satisfy free-market purists.

Posted by: Anonymous at October 31, 2005 3:11 PM

Gotta agree with Grendel. It's one if we, as a society, decide that we want to subsidize the housing of certain groups of people. But then the government, using taxpayer funds, should provide vouchers or some other form to make up the difference between market and subsidized rents. The current system creates great inefficiencies in the way the housing stock is allocated.

Posted by: Brownstoner at October 31, 2005 3:29 PM

Once again a number of you are mixing oranges with grapes, the issue is that a landlord is breaking the law, NOT whether rent control/stablization is good or not. A landlord can't decide "gee, I want to stop following the law and turn off the heat in winter because I don't like the rent stablization thing". A landlord gives up rights in a property when he/she accepts money from a tennant. A landlord can no longer do whatever he/she wants, thats why they get paid, that is the bargain they made. A landlord is required by law to provide things like hot water, etc. A landlord can not decide "I don't want to do that now because I want to sell the building because the building is more valuable now and so I will drive the tennants out by breaking the law."
The argument many of you are making is simlar to saying I don't like stop signs they slow me down, and keep me from driving as fast as I want, so therefore I am going to feel free to speed and run people over to make up for having to stop. You don't get to ignore and break one law because you don't like a different law. A landlord does not get to break the law and place people's health and safety at risk because the landlord no longer likes the deal he/she made. If a landlord does not want to own a rent control/stablized building, then don't buy it in the first place, its that simple. Its like anything else, if you don't want the responsbility, then don't do it in the first place.

Posted by: liekiller at October 31, 2005 3:40 PM

I think everyone agrees that you have to follow the law - regardless of how dumb that law may be.

But, RS and RC are horrible laws. There are many cheaper places in the area and the country.

1. It's silly to force an LL to provide below market housing for anyone when many cheaper alternatives exists.

2. When you read how LL's have to "buy out" tenants, take a guess who pays for that. That gets passed through, just like high gas prices.

3. Also, this freezes the market and makes it much more difficult to build new housing, further raising the price.

4. What I never get is why anyone who rents when a nabe is cheap would get a claim on the place for the rest of their lives. The reason why the place was cheap is b/c it was less desireable. Suggestintg that they are entitled to a lifelong sub-market rent is as strange as arguing that the LL should retroactively charge the tenant today's market rate.

5. Also, the financial maginitude of the cost of stabilization is never considered. Think about this. Why is the stabilized rent often a fraction of the cost of the maintenance for a similar apt? The property taxes are pushed from these LL's to the co-op and condo owners and free market renters. It's perverse to argue that there is any fairness in this.

6. In NYC, income plays little role in RC/RS. I'm sure most people here are familiar with Cindy Lauper's 4BR on the UWS for $800/mo...

7. At the end of the day, what these laws amount to is that young families try to fit into a studio apartment while many single individuals on RC/RS have large empty apartments. I can show you many.

It's a terrible and unfair system and it pushes out so many people from this city.

Posted by: JoshK at October 31, 2005 5:17 PM

Actually JoshK - you are wrong. Rent stabilization has allowed many people to stay in the city who could not otherwise afford it. I agree that it is not a perfect system. It keeps some rental units off the market, but the number of units that would come on the market if it were done away with completely would not come close to putting a dent in the market rate for an apartment.

Liekiller and Linus are correct. If you can't follow the law - get it changed or pay the consequences.

Posted by: BigBubba at October 31, 2005 5:47 PM

no, not everyone does agree that you have to follow the law, that is, apparently, the problem with the landlord in question. The landlord is trying to drive people out by breaking the law, that is exactly the problem and you keep trying to make it about something else. Iam starting to wonder if you are the landlord in question, or know the landlord in question, or are a landlord who practices such things, and therefore have a conflict of interest in this discussion which you should reveal?
There are plenty of landlords who absolutly refuse to follow the law. Maintaning a building in compliance with things like the fire code has nothing to do with "RS" or "RC".
Yes there are many cheaper places in other areas of the country, places like Iowa. Go to Hoboken, its not cheap there is it? Its the same as NYC, or maybe you think Greenwich Conn. is so cheap? Where around NYC is it "cheap" huh? Patterson NJ or some other dump? Please tell me where I can get a 1 bedroom apartment around here in a decent area for $500? Where? Where is "your many cheaper alterntives" tell me. You can't because it does not exist anywhere around here in the entire tri-state area, in places where there is not "RC" or "RS".
Furthermore "RC" and "RS" is not limited to NYC, it also exists statewide, and if you go upstate NY, its cheaper. Its not "RC" or "RS" that makes it more expensive, its the fact that the population of the city increased 750,000 in the last 10 years and there are more people who want to live here then there are places to live, that and the fact that landlords can charge and get high rent. Moreover, the argument that new apartments do not get built is simply not true, places are going up all over, have you been to willamsburg, or queens or downtown brooklyn? It does not "freeze" the market because new apartments are not subject to "RC" or "RS". And by the way $1,800 dollars, which is still "RS" in NYC is not a cheap apartment anywhere else in the country. As for forcing a landlord to charge below market, nobody made them buy the building, the landlord knew it was rc or rs when bought, they made the deal, its not anyone else's fault or responsibilty that said landlord was not smart enough to know there own mind, or too irresponsible to know what they bought. As for property taxes, etc and landlord who are losing moeny, tooo darn bad, its not the teneant's fault that a landlord is too stupid to make money legally off apartments in the most expenseive housing market in the country and he/she should be out of business.

Posted by: liekiller at October 31, 2005 6:01 PM

LieKiller how much do you pay for your apartment?
I guess is rent stab so please explain to me what makes you more previlage then me, that you deserve one and i dont.

Posted by: killerofliekiller at October 31, 2005 7:33 PM

Malymis, it's not just the "sophisticated" press. The Post, Daily News, Newsday, you name it and they will have weighed in heavily against rent regulations. The Post is actually one of the most vocal, with many editorials to choose from.

And the press circulates myths about rent regulation that people simply take as true without reading the law. For example, did you know that if you are a tenant in a rent controlled apartment, you *cannot* leave it in your will to your child/parent/sibling or anyone else? This has been stated as fact so many times that people simply believe it to be true. Rent regulated units can only be passed from one person to the next if that person has lived in that apartment witht the tenant of record for the last 2 years, and meets certain other requirements. Rent regulated apartments cannot be passed along in someone's will.

I could talk about this for days, but I will spare you the trouble. Needless to say, I stand by my statement above that we are having the wrong argument. If there's a problem with Cyndi Lauper having a huge apartment for pennies a month, then let's fix that problem. If we don't think it's fair for landlords to pay the cost, then let's tackle that. I have yet to be convinced that regulation is somehow bad, per se. Bad regulations are bad, but there can be good regulations that put the incentives in the right places, mimimize inefficiencies, and places value where the market cannot. Call me crazy, but I truly believe that.

Posted by: grendel at October 31, 2005 7:42 PM

Thanks Grendel
I guess i did not read anit rent stab articles recently.
I simply dont belive in excesive regulation.
Especialy in regulation that need regulation to work. Call me crazy

Posted by: malymis at October 31, 2005 8:16 PM

Thanks Grendel
I guess i did not read anit rent stab articles recently.
I simply dont belive in excesive regulation.
Especialy in regulation that need regulation to work. Call me crazy

Posted by: malymis at October 31, 2005 8:16 PM


Allentown, PA is just an hour and half bus ride from NYC. In Allentown, you can get a studio for $350.00 to $400.00/mo., a one bedroom for $400.00 to $550.00/mo, a two bedroom for $550.00 to $650.00/mo., etc. It's a very affordable place for people to live.

Why should some shmuck who lucked out and rented a cheap rent stabilized apartment in Greenwich Village, Park Slope, or some other nice neighborhood be allowed to suck his landlord dry year after year because he happened to rent an apartment twenty years ago?

If that shmuck can't afford rents in he Village anymore, why shouldn't he move to Allentown? Why does he DESERVE to live of his landlords sweat for the rest of his life?

IT MAKES ME SICK AND ALL YOU LIBERALS HAVE TURNED ME INTO A REPUBLICAN WHICH I NEVER THOUGHT WOULD HAPPEN, AND FRANKLY IT MAKES ME SICK THAT IT HAS HAPPENED.

Posted by: Anonymous at October 31, 2005 9:39 PM


New York's rent laws are evil. As a landlord with a lot of experience, I'd guess that half my regulated tenants illegally sublet for profit. When I take legal action against them, they move back in and I'm out hundreds of dollars in legal bills. It's a lose-lose situation for landlords and a win-win situation for tenants.

ALL YOU PRO RENT REGULATION LIBERALS ARE FULL OF IT. IF YOU BOUGHT A BUILDING AND WERE FORCED TO TAKE PHONE CALLS EVERY DAY FROM TENANTS PAYING $600/mo FOR AN APARTMENT THAT COULD RENT FOR $3000/mo, YOU'D CHANGE YOUR OPINIONS FASTER THAN YOU COULD SCRAMBLE EGGS.

THE CITY SHOULD HAVE TO SUBSIDIZE THE DIFFERENCE. WHY SHOULD PRIVATE CITIZENS BE FORCED TO SUBSIDIZE OTHER PRIVATE CITIZENS?

I've spent the last ten years of my life trying to turn around neglected NYC tenement buildings. It's nearly impossible. I can't renovate half the apartments because of NYC rent laws which encourage a combination of low income and just plain frugal people to latch onto apartments forever.

I WANT TO HAVE NICE BUILDINGS BUT I CAN'T BECAUSE OF THE RENT LAWS.

CAN'T YOU BLEEDING HEART LIBERALS UNDERSTAND THE PROBLEM? DON'T YOU SEE THAT GOVERNMENT ENFORCED PRICE REGULATION HURTS MANY MORE PEOPLE THAN IT HELPS? ARE YOU ALL INSANE?

Posted by: Anonymous at October 31, 2005 10:07 PM

well said 10.07. imagine goverment will force every SUV driver to pay 50 cents more per gallon to cover expenses those driving cars...1 it's not fair, 2 what about those cadilac drivers..

Posted by: Anonymous at October 31, 2005 10:37 PM

If the government can regulate rents keeping them at below operating levels then why don't they regulate the heating cost, insurance and propery tax as well.

Some RC apartments are as low as $80 a month. The cost of heating and apartment is about $110 a month.

Many buildings with RC and RS are crumbling. The tenantes should vacate and the buildings should be torn down.

Posted by: Anonymous at October 31, 2005 11:46 PM

anon 10:07,

I'm actually opposed to rent stabilization for many reasons, but it is misleading for you to claim you have been forced (sorry, I mean "FORCED") to do anything. If you have been a landlord for the past 10 years, and if you are as knowledgeable as you say, then you went into the business fully aware of the regulations and their requirements, which had been in place for years.

I totally agree it is unfair for one subset of citizens (landlords) to pay for something that is supposedly a good for the whole of society. But, nobody forced you to buy into that unfair system.

Posted by: linusvanpelt at November 1, 2005 8:10 AM

re- anon 10:37's comment about SUV's, the only reason SUV's have become such a major portion of new-car sales is because of a regulatory loophole (protected by the US auto conpanies), exempting them from fuel-efficiency requirements. Considering how SUV's contribute much more than their share of pollution, etc., your 50 cents/gallon tax seems fair to me.
completely off topic I know, but while I am certainly no fan of rent control (I'm a landlord now, but it never did me any good as a renter either), some regulations are necessary to provide a safety net.
Do we want to be like those fancy ski towns in colorado, where schoolteachers have to commute 2 hours to their school?

Posted by: Anonymous at November 1, 2005 12:09 PM

Allentown Pa is simply not comparable, or near to NYC, its about the same distance away as phili, to claim that is "in the area" is pretty disingeutious. No I do not live in a rent stablized apartment, "killer of liekiller" nor do I wish that I did, good try though, although you did not answer if you were the landlord in question, or a landlord who is breaking the law, so much for honesty I suppose.
As for buying a building and not being able to charge 3k a month, the market went up, sometimes it goes down thats the way it works, and you want to cry about it, well you bought it, you knew who was living there and the terms and conditions of the relevant leases, and all of that was disclosed to you when you bought it, as is required by law. Who's fault is that? Who's fault is it that you don't like the deal that you yourself negotaited, at arms length, likely using an attorney to do so? Heard of the word responsible?
In addition, as for trying to turn buildings around, if you do that, then you get a rent increse, do enough work and the apartment can be deregulated, and in many cases landlords get taxes breaks, cheap loans, and in some cases outright grants to do just what you are claiming you do. Are you comlpaing about that? No, you simply want the city/state to subsidize your profit, and then abdicat the responsiblity that comes with the benefits.
In addition, to the poster who said that apartments are going for $80 dollars a month and ocst $110 a month to heat, that is simply not true, rents go up, even for rent controlled apartments, and even if what you were saying was true, a landlord can get a rent increase for things like higher heat costs, higher labor costs, rehabilition, capitial improvment, and even economic hardship. SO if you had a 80 dollar apartment with 110 in heat bills you would get a rent increase.
Obvioulsy you are mis-infored on this subject of the law, and I sugget you check out the city of new yorks website on the subject.
In addition, the cyndi lauper thing, I do not know whether that is true, but given the misinformation that has been branded about on this board, I tend to doubt it, the reason being that when the tenant has an income of $175,000 the apartment can be de-regulated. But then again her career is not doing much these days so maybe she is not making that kind of income any longer. Everybody knows stories of famous people who wind up with nothing.
RC and RS can sometimes cause problems for the landlord who ownes a single building and has leveraged themselves to the hilt with debt in order to aquire the building, and those people operate on very small margains, but like any business, if you get too much debt and you have a problem then you have to go under, just like anyone else, bad business is bad business, but none of that is really the point here. The building in question, and my point from the start, has been that landlord should not get to break the law simply because they no longer want to deal with RC or RS. You don't get to do "whatever you want". We live in a society of rules and laws, and if you don't want to follow them, then you either need to go to jail, or move to someplace like Somalia where they don't have laws and you can benefit from the wonders of being able to do "whatever you want". I say you last 30 seconds.

Posted by: killerofliekilleriswimpy at November 1, 2005 12:33 PM

First of all, there is no question that RC and RS has allowed a lot of people to remain in NYC. We could create laws to keep people in Beverly Hills. I'm not sure why you would do that? To argue that anyone has an intrinsic right to an expensive neighborhood anywhere is untenable.

If these policies came at no cost to anyone, than they would just be silly. But, that is not the case here. These laws dramatically reduce the supply and increase the cost of non-RC apartments. To argue otherwise is to fly in the face of all established financial research. If you could prove that RC and RS does *ANYTHING* positive for the NYC real-estate market (beyond those people who occupy the units) then I would suggest trying to get published and take home a Noble.

Posted by: JoshK at November 1, 2005 2:57 PM

One other absurd comment:

"its not the teneant's fault that a landlord is too stupid to make money legally off apartments in the most expenseive housing market in the country and he/she should be out of business."

When tenants have organized and backed laws that have made it extremely difficult to be a successful LL and have made this the most expensive area in the country, then shouldn't there be some blame to the tenants?

Posted by: JoshK at November 1, 2005 3:00 PM

Joshk you argue that rc and rs raise the cost of non rc apartments and ask for proof that they do not and yet you offer no proof of your own. I wonder also if you considerd, when you made your comments, all the tax breaks and special deals that landlords get for rs housing, who is that costing? Certainly not the landlords.
I await your nomiation for a noble.
And to your other "absurd comment", yeah landlords are going broke, just look at poor donald trump, or broke leona helmsely or the tishman group, or extell, or the day group, obviosuly they figured it out. To blame a landlord who can't make money legally on tennants who assert their legal rights when slum lords violate the law is absurd. Talk about blaming the victum.

Posted by: liekiller at November 1, 2005 3:37 PM

" all the tax breaks and special deals that landlords get for rs housing, who is that costing? "

Exactly. Who pays for their tax breaks? Someone else is paying for that. Everyone else is paying for that. The last time I've seent the # estimated it was about 10.5 bil.

"Joshk you argue that rc and rs raise the cost of non rc apartments and ask for proof that they do not"
Pick up any first year econ text book. There are few cases of as bad policy as NYC housing and it gets prominent attention in many books. Just to show you how ubiquitous the outrage in the economics world is, I'll give you three samples, from far-left to center-right:

Center-right:
http://www.cato.org/pubs/pas/pa-274.html

Center:
http://www.econlib.org/library/Enc/RentControl.html

Left:
http://www.pkarchive.org/column/6700.html

Posted by: JoshK at November 1, 2005 4:11 PM

Those websites do not offer any proof, they merely offer opioion and diatrad, which is far from facts or proof. One is for the cato instutite, which is a right wing think tank that has nothing to do with reality. The website that you listed as "center" is also simialar, and uses for its "facts" the opions of candians, swedes, etc (no disrespect to swedes or candains or etc, I happen to like em) and the website that you listed for the left makes no argument pro or con as to the virtues of rent control. That is proof? Where is a stastical break down? Where are facts? Where are figures? You could maybe start with something like NYC (not canada) average rent for a studio, 1,2, and 3 bedroom apartments, bourgh by bourgh, rc and rs vs. "free market" and then offset and compare that against various other economic factors. But you did'nt do that, you merely refered me to some other persons opinion. That is not proof.
Now please prove to me why landlords should be allowed to break the law because they don't want to deal with rs or rc even thought they knew thats what they were buying and who that serves, which is the real subject of this thread.

Posted by: liekiller at November 1, 2005 4:40 PM

Well, I'm impressed that you are willing to take a position that goes against virtually every economist.

Also, you ignore the fact that their arguments make very solid sense.

Here's a guy from MIT who did some research: http://www.manhattan-institute.org/html/cr_34.htm
He's very widely published and respected. He's done quite a bit of work for Fannie.

Fundamentally, any time you set a price ceiling, you limit supply. That's basic econ 101.

Here's a guy from Brookings:
http://www.nmhc.org/Content/ServeContent.cfm?IssueID=66&ContentItemID=1186

A guy from REPEC:
http://www.nber.org/papers/w5441.pdf

You're not going to find a lot. In the world of finance/econ, this is a done deal.

But, it's your chance for a noble prize, so go for it. You'd stand the world on its head.

Posted by: JoshK at November 1, 2005 6:47 PM

It's "Nobel" prize, not "noble" prize, you economic gurus!

Posted by: Anonymous at November 2, 2005 10:12 AM

sigh, once again you refuse to answer the question of why should landlord be allowed to break the law when they no longer feel like dealing with rc and rs and instead create a straw-argument laced with juvinile taunts that you prop up with links to websites authored by right-wing koo-koo bananas groups or housing assocaitions that have a vested interest in distorting the truth. You have not offered a singel scientific study by a dis-interested person or group. The first time you gave three websites. One was an artilce from the NY times which did not even argue the merits or lack of merits of rc and rs. I still don't even understand why you linked that. Brilliant. One from the cato instutite, and the other from a simialar group which were links to artilces that contained obvious and factual falsehoods such as "landlords can't get an incraease in rent if heating costs go up" (paraphrase), which is not true. In NY landlords DO get a rent increse for such things. These articles simply lie, and is not proof of anything, despite your contnetion that everyone says it, so it must be true. Yeah, and germans all thought hitler was great too but that did not work out very well did it?
The second batch of websites is no better (did you even read these?) One, I needed a password to get into and so who knows what it says, the other is from a guy not at MIT but the Manhattan Instutite (yeah REAL objective there) and his whole argument is that people who live in rc or rs apartments are already paying the market rate anyway and so rc and rs don't matter, if it went away rents would hardly change in any direction, that its basically a wash. Thats your "its a done deal" arguement?
The third is from a housing association bent on raising rent, leveraging landlord positions, and geneally are hostile to anything not allowing them to do whatever they want and their article cites such insightful stats to bolster their argument as "areas around boston had higher vaccanies than boston did when rent control was in effect" Really? Duh, no kidding, a city has more people than a crappy suburb, how astounding. That proves EVERYTHING!!!! YOU WIN THE NOBLE PRIZE GENUIS!!!!!
I also really enjoy the effort you made to artifically narrow that discussion and then to make a few inflamatory comments as well, (hence my hostile reply to you) while at all times avoiding answering the question of why landlords should be allowed to break the law. Good job.
So since we are on the subject of boston, which ended rent control, here are some numbers for you to consider:
While it is true that new consturtion has built new buildings, it has not helped matters contrary to what your supply-voodoo economics would have us belive.
In a study conducted by Harvard University the data demonstrated that Boston has become one of the most expensive and least affordable palces to live and that the average rent went from $825 dollars when it was rent stablised, to $1,700 after rent controls ended. Gee rents went up, what a suprise, what happened to your theory there loudmouth? I thought they were supposed to come down?
According to the Mass. Assocation of Realators, Boston has a vacany rate of less than 1%. Why? Because even though there is new apartments going up they are just replacing the old buildings got knocked with new buildings at higher rent, thus not resulting in a higher net of housing, thus making rents actually go up.
The Donohue Institue at the Univertisy of Mass found that evictions after rent control ended increased 64% and that homelessness doubled. Now Mass. is trying to bring rent control back.
Seesh, I am going to go back to craigs list where at least the b.s. is funny and creative.

Posted by: liekiller at November 2, 2005 11:25 AM

The landlord under discussion knew what he was getting into--a form of arbitrage. Buy the building at the depressed price that rs/rc tenented properties go for, then "encourage" them to leave in a passive enough way to not invite indictment, then reap the benefits-i.e.sell now valuable vacant building or recently upzoned lot. He just got caught. But that behaviore is so predictable. I saw it 25 years ago on the UWS.

This is another reason to phase out rs. Dishonest LL's like this one reaps rewards unavailable to the conscientious.

Posted by: carolyn at November 2, 2005 1:25 PM

fliekiller,

I think you need to re-read my post.

1. I don't suggest that LL's are allowed to break laws. I'm saying the law itself is counterproductive.

2. The sources I gave you range from center to left.

3. All of the authors are highly regarded in the field of economics. While some of these articles are hosted on sites that are ran by groups that don't like RC, the authors themselves are top notch people. And yes, the Manhattan Instiute guy is from MIT, from their department of housing econ. I suggest you verify any of these facts yourself if you don't beleive them. Certainly, LL groups are glad to have these people writing for them - because they are famous and established in their field.

4. So far, you have not responded to either the logical arguments presented above, or the empirical research presented above.

5. All of these sites are accessible. You may have to register, but I'm sure you can figure out how to do that with enough time.

6. You have to separate Cambridge from Boston and that from Brookline. The numbers you cite are either erroneous or fraudulent or both. Here, you can see one survey by a bunch of far-left types: http://www.housingnyc.com/downloads/research/pdf_reports/dreier.pdf
The only # you got right is the vacancy rate. And, I don't hink you understand the difference between marginal numbers and averages. Certainly, the mean is going to increase. But, the marginal rate for new renters went down. Also, investment in the housing stock increased. That same guy, Pollakowski, did research on just this. I'm sure you can find that one yourself and do some reading.

8. You claim that LL's get an increase as their costs increase. You don't seem to understand the system. The RS board votes in increases once a year which generally lag well behind CPI. There is little correlation to true inflationary costs faced by LL's - this is a political board. Also, RC, which affects a smaller # of units, essentially eliminates all increases.

9. The fact that you can't start to address the issues presented above combined with your rabid hostility makes me think you need to switch to a topic you know more about.

Posted by: JoshK at November 2, 2005 4:10 PM

no retard the board adjust EVERY TWO YEARS not every one year, as you incorrectly claim in your last post. You can go to their website right now and see for yourself. Yes they do get an increse for things, sheesh go to their website, you can even download the form. You can't even get something like that correct, and you want to talk about numbers? What a joke. You are clearly the one who does not a darn thing about this and you are clearly just making stuff up.

Posted by: liekiller at November 2, 2005 4:24 PM

Every two years only accentuates my point. PErhaps you should reread this again.

I think you should spend some time reading through some of the material I gave you above. Only one or two of the links really get into any math.

If you want more general economic literature, I can try to send you something. I think you'll find it interesting an enjoyable.

Posted by: JoshK at November 2, 2005 4:30 PM

no thanks I get enough spam already, and yours isn't even funny.

Posted by: liekiller at November 2, 2005 4:39 PM


I'm a NYC landlord. I've gotten small MCI rent increases from the rent regulated tenants for replacing the boiler and roof. I've also done lots of cosmetic work (halls, washing of exterior, carpeting, etc.) that I can't collect increases for. About half of my tenants still pay about one third of the free market rent.

In order to get increases for work in their apartments, the tenant needs to agree, which they very rarely do, because they don't want their rent to increase at all.

I have a tenant in a rent stabilized apartment who is a pretty well known New York chef. She travels the world for business and pleasure and makes at least $100k a year. Her rent is $650/mo for a $2500/mo apartment. In order to deregulate the apartment, the legal rent has to be above $2000/mo and I have to prove that she's making over $200k a year. It'll take at least 25 years for her legal rent to hit $2000/mo and by then I'm sure she'll be retired.

It's true that I, like most living landlords in NYC bought my building well aware of the rent laws. However, I bought assuming the laws would eventually be changed because they are a NYC relic that are economically unfair to landlords and the general population at large.

And lastly, to Liekiller, to quote Mr. T:

"I pitty the fool."


Posted by: Anonymous at November 3, 2005 12:07 PM


Landlord don't get any tax breaks for rc or rs tenants. NONE WHATSOEVER.

Posted by: Anonymous at November 3, 2005 12:39 PM

Allentown PA is only an hour and fifteen minutes by bus from Port Authority. Rents in Allentown are dirt cheap and you can buy a historic brownstone for well under 200k. A friend of mine bought one for 80K a couple years ago and just sold it for $140K.

What makes long term NYC tenants so special? Nothing. CHANGE THE LAWS! MAKE THINGS FAIR!
For the most part, this is a democratic capitalist country, and I hope it stays this way.

Posted by: Anonymous at November 3, 2005 12:48 PM

If the government can regulate rents keeping them at below operating levels then why don't they regulate the heating cost, insurance and propery tax as well.

Some RC apartments are as low as $80 a month. The cost of heating and apartment is about $110 a month.

Many buildings with RC and RS are crumbling. The tenants should vacate and the buildings should be torn down.

The reason NYC has Pro-tenant laws and pro tenant housing court decisions is that NYC has more tenants than owners. Unfortunately Mob Rules.

Posted by: Anonymous at November 3, 2005 2:17 PM

Praise the Lord. There are some reasonable people here.

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