Buying a Rent-Stabilized Bldg
My parents and I were looking at a 6 family building with 4 rent stabilized tenants, 1 vacant, and the owners apartment. My parents would take the owners place and I would take 2 of the other apts to combine for my own growing family. Pleeeeease don’t go all rent-stabilized crazy on me, but would…
My parents and I were looking at a 6 family building with 4 rent stabilized tenants, 1 vacant, and the owners apartment. My parents would take the owners place and I would take 2 of the other apts to combine for my own growing family. Pleeeeease don’t go all rent-stabilized crazy on me, but would I be able to take one of the rent stabilized places over to do this? If so, can I pick any of the stabilized units? I suppose I would pick the one paying the least since the higher income from the others is what is making my mortgage manageable. Does it matter which one I decide to ask to move out? Any thoughts on the matter are appreciated. I’m really not looking to be some evil landlord- just want a place for my family and parents to live with a bit of income.
Rent-stabilized and Rent conrolled are 2 very different things. And very different laws apply to them. Are the tenants RS or RC?
Rent control is one thing, rent stabilized is another. You have to own the building as an individual not a corporation to be able to take an apartment for yourself. (believe me i know I made that mistake.) you have to live in the apartment that you evict the tenants from. You can serve the tenant with the notice at the time you are required to serve him with the renewal lease for a rent stabilized tenant. For more info try those Nolo Press books on Landlord Rights. Those cover these issues very well.
Try casually meeting with the rent stabilized tenants to get a feel for them. It’s been my experience that a change in ownership can tend to precipitate tenant moves as well. Don’t tell the tenants that you’re looking to take over an apartment, just talk to them about how long they’ve lived in the place and how they like it. Be polite and interested and let them do most of the talking. You’ll learn alot about who sees the apartment as a home and who is just staying for the time being. You’ll have a tough time getting the former to move out, especially if they have children and, as noted above, it will be next to impossible to make a senior move if they don’t want to.
You could offer the tenants a ridiculously large sum of money to leave the apartment – am talking $30-50K – but some of these RC tenants are savvy and will expect more
From what I have read on this board, people don’t seem to think buying a building with RC tenants is the way to go unless you have a lot of time and money on your hands to deal with them.
As of a few years ago all you had to do was give 120 days (before expiration of lease) notice or non-renewal due to impending owner occupation, and all was fine.
Haven’t had to deal with it in a while so things might have changed slightly, but for years it was 120 days notice.
If any of the tenants are 62 or older, you can’t get their apartment back.
Here’s the DHCR Fact Sheet:
http://www.housingnyc.com/html/resources/dhcr/dhcr10.html
Since the Democrats have the majority now (albeit by only one vote) in the State Senate, liberals are proposing all sorts of new laws to limit private property rights and allow squatters (aka rent regulated tenants) basically unlimited rights over property other private individual’s own. It’s straight out of the Communist Manifesto.
You’d be taking a big risk buying this building at this time. Of course, if the price is too good to pass up, roll the dice and give it a shot. Just be prepared for the worst.
Did you read about the Economakis (spelling?) family who went through all that litigation in the E. Village to get use of a rent stabilized apt for his own personal use? I think they are all still in court.
A lot of people do accept the buyouts offered to them to move, so really it could work out in your favor or go terribly against you depending upon who you are asking to leave and what you are offering to expedite the process.
It’s currently possible but very very difficult. However, they may be reforming rent stabilization laws to prevent lease non-tender for owner occupancy.
That said, there is a price where it would make sense, but I doubt the seller would accept at that price. For better or worse, the law is more worried about rent stabilized tenants than you.
Why would it be 3 years? I thought you are allowed to take back an apt if it is for owner use? I will obviously do much more research if we decide to go forward, but I’m interested to hear thoughts, opinions, etc.
The only reason we are even considering doing this and not just going the 2 family route is because we like the building so much.