Can you rent in Midst of CO change
I am currently renovating a 2 family (taxed as a 3) brownstone. My architect put in the reno as a change of CO from 2 to 3 family. I am still working on my unit; but two apartments are complete and I want to rent them out. My contractor is telling me that I may…
I am currently renovating a 2 family (taxed as a 3) brownstone. My architect put in the reno as a change of CO from 2 to 3 family. I am still working on my unit; but two apartments are complete and I want to rent them out. My contractor is telling me that I may have a problem renting because we have not yet obtained the 3 family CO. Is this true?
There are only two kitchens (the ones in the rental apartments). My floors still have a way to go and I need the income to offset the mortgage. I am thinking that I can rent out under the current 2 family CO.
Am I looking for trouble or is my contractor mistaken?
oh and as for the 3 kitchens in a legal 2 family, they are not taxing you as a 3 fam. it may be typical, but so was booze during prohibition. if discovered by the mass of new inspectors under the current (and soon to be renewed) administration you will get a violation and be required to
a. remove the kitchen or
b. file to change the C of O so that they CAN charge you as a legal 3 fam.
the answer may be to get a temporary C of O. the finished portion can be inspected and as long as all health and safety issued are complied with it is possible with the right expediter/architect to argue your point and get a temporary certif. of Occ. That give you 90 days to complete the rest. however if the work that remains is in a shared space with the finished portions (hallway/entrance) you can forget it. its not easy but worth a try to get the possibility of 3 months income. and if progress is made the temp can be renewed.
did i mention i specialize in temps???
Thanks everyone. I see that it is indeed not as straight forward as I first thought it should be. I have to really think this one through.
Bohuma is right about speaking with your attorney. However, unless your attorney specializes in landlord-tenant law, there is a good chance s/he will not be fully informed about use. Assuming it works with the new configuration, there is a possibility that YOU might be able to use the not-yet-legalized unit, while renting the 2 units that conform to the current CO. That would NOT make your use legal, but it *might* minimize the chance of litigation. Don’t take my word for it–this is REALLY something to confirm with your attorney AND with the DOB. Equally important, speak with your architect as well as your well-informed contractor. Do you have a temporary CO for a 3-family? If so, when does it expire? A visit to the DOB can also be useful. My experience is that most of their employees will be very helpful if you’re patient and willing to spend the time being referred from one room and one desk to the next. Some useful reading:
http://www.nyc.gov/html/dob/html/guides/series.shtml
nyc.gov/html/dob/html/certificates/co_factsheet.shtml
nyc.gov/html/dob/downloads/pdf/illegal_conversion_factsheet.pdf
I don’t know if you were watching the ABC news earlier this week, but the Department of Buildings issued an immediate vacate order to all persons living in a building without a valid residential CO. I would ask your attorney, or go to housing court and ask one of the lawyers who hang out there.
3 kitchens in a legal 2 is common and typical to brooklyn, and nyc/Long Island in general. They city may tell you to take out the 3rd kitchen, but they are already collecting taxes as if its a legal 3. i say chance it. and rent to good quiet tenants who wont cause neighbors to complain. i would do a month to month lease if you can swing it, with a little bit lower rent to make it enticing to renters.
The answer is both straightforward and complicated, and far more complex than this reply. Here’s the straightforward part: 1) You cannot legally rent an apartment for which you have no CO, and 2) Your contractor sounds very well informed. If you did rent an illegal unit, you would be chancing potential litigation. If that came to pass, you’d certainly lose and you’d also pay dearly. Here’s the part that’s not so straightforward (though intentionally different than yours, it should give you an idea of the complications): In this example, the building has a 3-family CO. The current CO shows the 1st and 2nd floor as one legal, duplex apartment. If they were divided to create two separate rentals, while in the process of conversion and until a new CO was approved, only one of the two floors would qualify as a legal rental, and the other floor would not.