Questions About Rent Stabilized Tenants
I just purchased a foreclosure last week. The bank who owned the property for the last year did not collect any rents from the tenants. The bank gave me an assignment of rents which allows me to collect a year’s worth of rents. The tenants are now giving me a hard time as they don’t…
I just purchased a foreclosure last week. The bank who owned the property for the last year did not collect any rents from the tenants. The bank gave me an assignment of rents which allows me to collect a year’s worth of rents. The tenants are now giving me a hard time as they don’t want to sign new leases and they don’t want to start paying rent. I just hired an attorney who will start the process to sue for the last 12 months of rent, plus the rent they owe currently. I am concerned that I won’t win, and these tenants will continue to live for free….am I worrying for nothing?
OP, are you the same person who posted a while back about possibly buying into a rs building and wondering how to toss them all out?
Why everyone is so negative about a young guy who’s taking a risk? Ignore all the non-sense and hire a season management company to handle these issue for you. I own properties and never been to court. G-Way management handle all my needs, there are many companies that can assist you. Good Luck!
you’re 26 and you bought a building in NYC with rent regulated tenants and you think the courts will be on your side? Are you a douchebag?
Walk away. walk away now, you haven’t a clue.
younglandlord, quite some time ago a phone number was posted on brownstoner of an agency that helps landlords with rent control and rent stabilized issues. Sorry I don’t have it any longer. Perhaps it is the RSA about which Bklnite wrote at 10:54 AM.
In addition one can do a brownstoner search of something like ‘rent stabilization’ for even more ideas. Here are only 2 sites I saved and don’t know if either would be be helpful in your situation. Good luck!
tenants refuse to sign lease
http://bstoner.wpengine.com/forum/archives/2009/06/tenant_refusing.php#comments
tenant wants to break lease
http://bstoner.wpengine.com/forum/archives/2009/06/tenant_wts_to_b.php#comments
An important issue before you start sending out the leases is to ensure that the tenants there are the proper tenants with whom the prior landlord leased the apartments to. Once you have established that they are in fact the proper tenants send them the lease renewals certified mail and charge them the new rent in 90 days.
As far as not collecting the current rent start immediate
non payments with an aggressive L/T lawyer and set the tone that you will not tolerate nonpayment. The tenants have probably gotten used to not paying the rent. Expect a storm of HPD violations and many DHCR complaints/overcharge/reduction of services charges.
If you already met with the tenants and they are not cooperative then you must assume the worst and prepare for a long battle.
You are going to need a lot of help perhaps more than you can get on a blog.
Good luck-
Thank you for your help. To answer your questions, I bought this building knowing that I would have headaches from these tenants, but I did not expect them to give me a hard time renewing their leases. Most of the tenants leases are long expired, and I have met with each of them numerous times to discuss the fact in the last 30 days that I am purchasing the building, and I will be their new landlord. Yes there are HPD violations, like all buildings, nothing that won’t be fixed. I don’t care to actually collect the last year’s rent, I want one of 2 things – 1. Either they leave in exchange of not paying the last year’s rent or 2. They agree to start paying rent as of June 1, otherwise the Marshalls.
Nothing in life comes easy, and as such, I purchased this building (no I am not a seasoned investor, I am 26 years old and this is my first building) as a long term investment. I am willing to put in the effort in getting it under control, and I am hoping that the court will be on my side if the tenants are not paying? Of course, I would rather paying tenants than no tenants. but if I can’t get paying tenants, I obviously want them out.
So you hired an attorney to handle this but now want anonymous free advice from bloggers? Why not just ask your attorney?
paying rent in NYC in a rent-regulated apartment is optional. If you don’t care about your credit rating or your ability to rent again in NYC, you can get by literally for years without paying any rent. The judges in housing court are exceedingly reluctant to evict anyone including deadbeats and so will drag out the process as long as they can.
OP didn’t say anything about trying to get the tenants out. Why does everyone assume that’s his/her goal? S/he’s just trying to get them to pay rent.