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May 26, 2009

rent stabalized rent raise

live in a rent stabilized building, looking to move into new apartment, vacated by a long time tenant (maybe 30 years). The landlord wants to raise the rent to 2500 per month, which I suspect is a raise of over 300 percent.

my question is, is there a limit to the amount the rent can be raised on a stabilized apartment from the previous lease?

The landlord says he's going to do a lot of work to the apartment (which I know is part of the process of justifying an increase) but I'm wondering if there's a limit....

Posted by oneasternparkway at 12:00 PM | Comments (10)

Comments

Don't quote me on this but at one time I believe it was 16% on a vacated apartment.

But there are caveats.... 1/40 of internal improvements can be added to the "legal" rent. Also, there is a "vacancy decontrol" in which a vacant apartment becomes de-controlled if it stays vacant for a prescribed period of time (I forget how long).

So, in theory, 16% vacate bump, 1/40 of a gut reno bump, and maybe a few months of being vacated, it might, technically, get it de-stabilized.

Posted by: christopher at May 26, 2009 12:25 PM

The long-term tenant was probably rent controlled.

When he/she moved out, the apartment probably either became market rate or rent stabilized--either of which would have resulted in a big price jump.

I know that's happened a few times in my building.

Posted by: alsawo at May 26, 2009 12:42 PM

Call division housing commuity renewal and talk to them about it.

Posted by: Ysabelle at May 26, 2009 1:10 PM

My understanding is that when an apartment legally has rent increased to $2000, the apartment can be de-stablized. More info here:

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

Posted by: phripley at May 26, 2009 2:24 PM

thanks all, very helpful. sounds like first thing I need to do is find out the actual rent of the previous tenant...

Posted by: oneasternparkway at May 26, 2009 3:27 PM


If the apartment was rent stabilized, your landlord should have no trouble getting the legal rent over $2000/mo. and decontroling the apartment by renovating, adding 1/40th of the renovation cost to the monthly rent, plus adding the vacancy increase, as well as the long term vacancy bonus.

If the apartment was rent controled, as long as similar free market apartments in your neighborhood rent for $2500/mo, the apartment is automatically decontroled. If you were to challenge your landlord after renting the apartment, all the landlord would have to do is prove that a couple similar apartments rent for around $2500/mo.

In other words, you're most likely wasting your time if your plan is to "catch" your landlord and somehow force him to rent you his apartment post renovation at a below market rent.

If you want a really low rent, check out Allentown, Pa. . .

Posted by: IronBalls at May 26, 2009 5:10 PM

thanks for the advice, Iron Balls.

As for the Allentown line, I've got family in Emmaus.....

Posted by: oneasternparkway at May 26, 2009 10:20 PM

Nothing really to add. It maybe was rent controlled, once a rent controlled tenant dies, as far as I know the apt becomes free-market. If it was rent stablized, as the previous posters said: With the vacancy increase and 1/40th of the renovation cost, even (assuming it's a gut reno)that's still a lot but I've seen them do it. SS appliances, d/w, w/d, even heated floors, just to get it out of RS. Landlords are required to register ALL their legal rents, increases, and rental history of stablized apts with DHCR. You can check once he's done.

Posted by: Crownlfc at May 26, 2009 11:08 PM

There's a difference between rent control and rent stabilization, too. Read up on the current rules here:

http://www.dhcr.state.ny.us/Rent/

Posted by: serpentor at May 27, 2009 1:02 PM

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