Stabile Buyouts: How much?
I would like to know of any standards, existing examples, or others historical experience when a landlord wants to buy-out a tenant? I have been living in an apartment for 26 years and my contractor-landlord is offering me a small buyout with a two month window. The building is currently being contested for rent stabilization…
I would like to know of any standards, existing examples, or others historical experience when a landlord wants to buy-out a tenant?
I have been living in an apartment for 26 years and my
contractor-landlord is offering me a small buyout with a two month window.
The building is currently being contested for rent stabilization by other tenants in court for whether this is a 6 unit or technically a 5 unit building + one store front. Since we have not contested the landlord we are on good terms. We would accept a buyout (no lease) to move in his two month time frame but expect a substantial sum to complete first a temporary move and then a permanent one once we find something.
I have heard buyouts as much as high 5 digits sometimes even 6 or 7 digits numbers for rent stabilized tenants. I’d like to work with him if the amount was increased to accomodate my inconvience. How much is enough? And who has had any experience with these numbers?
The $250,000 number is what it is worth (based on the amount of money you’ll need to break even to pay the higher rent). It doesn’t mean it is close to what you can get. The market isn’t very efficient. Any Landlord who can count and read knows the deal on their investment (and paid less for the building as a result). If they get away with less than your break-even, it is a windfall for them. And I am a landlord.
I once bought out a RENT CONTROLED one bedroom apartment the was renting for $75.00/mo in Soho for $15k.
Yes, folks, I know. Lucky as shit.
Of course, the tenant wasn’t really living in the apartment, which made things much easier.
I’ve personally never given anyone over $30k even if I know it’s worth it. Somewhere deep down inside, I can’t stomach making some lucky sap’s lottery dreams come true just because New York rent laws are insane.
If your in a 5 family your not subjct to rent stabilization. If your not rent controlled get what you can and go. The landlord doesn’t have to give you a dime.
My office has negotiated buyouts ranging from $30,000 to $800,000 depending on the landlord’s finances, the size of the apartment, and the intended use. If you are considering assistance, refer to our website at http://www.borahgoldstein.com.
This is everything that’s wrong with rent regulation. Glad someone feel entitled to “expect a substantial sum”. What’s the social good achieved by this? No means testing or other method to applied to justify this pure and simple shakedown.
This is everything that’s wrong with rent regulation. Glad someone feel entitled to “expect a substantial sum”. What’s the social good achieved by this? No means testing or other method to applied to justify this pure and simple shakedown.
In my experience I found negoiations to be paramount. There is NO rule of thumb to go by because every situation has different obstacles. The important things to remember are the deadline that is imposed for your moving and just how much. We settled for a high 5 digit number to get out of a six unit bldg in Manhattan. Other tenants contested the idea of leaving and caused alot of court expenses as a result but later accepted the same offer. The landlord did pay alot in legal expenses in addition which I think they sometimes do not realize. Try a positive approach
I don’t think there is a hard and fast number that you are entitled to. What you can get from your landlord really depends a lot on what your landlord is planning to do with your apartment (and even the entire building) after you leave, and what his financial situation is etc etc. I would just open negotiations and see where they go.
if your apt is $10k below market value a landlord wouldn’t pay anywhere near $250k for you to move. It just wouldn’t make financial sense.
The rule of thumb I’ve heard is 2 yrs of the difference between market rent and current rent. So if you are paying $10k/month under market you could expect around $20k +/-. All of the buyout deals I’ve heard about are in the $5k-15k range.
The only ones that are the big numbers you are talking about are when someone has a classic 6 on Central Park and they pay $300/month for it.