Rent Controlled Apt
Hey, I wanted to know if anyone had any insight regarding rent controlled apartments. I’m looking at a 3 family house that has a rent controlled apartment. What would be the quickest way (if any) to get that apartment de-regulated? I read that if that tenant leaves that it becomes rent stablized unless its 6…
Hey,
I wanted to know if anyone had any insight regarding rent controlled apartments. I’m looking at a 3 family house that has a rent controlled apartment. What would be the quickest way (if any) to get that apartment de-regulated? I read that if that tenant leaves that it becomes rent stablized unless its 6 units or more? Any thoughts on that?
Thanks,
Jason
Homeslice, you need to talk to your lawyer about the reality of owning a RC unit. It’s highly unlikely you can evict the tenant; even if the tenant was a multi-millionaire, it would be a long and expensive court fight, but in most cases, RC tenants are older, on a fixed income, which means it’s a long, expensive court fight that you WILL lose. Not only that, but if a family member or caregiver moves in, then the RC deal can be passed on to another occupant.
Either the property works for you as it is, or it’s not the right deal for you. Don’t you go marrying somebody and trying to change them.
rent controlled tenants are like the only quirky and eccentric people LEFT in nyc.
*rob*
quote:
Some R/C tenants are ok, but most are pretty horrible
most are “pretty horrible?” why is that? because they rode out the hard times in nyc and just trying to survive and have a roof over their head? jeez..
*rob*
Assume zero increases in rent forever.
Also assume that you’ll spend 20+ hours filing forms with various agencies, and, if you forget even one, your tenant will get a rent reduction order.
Buy low or not at all. Some R/C tenants are ok, but most are pretty horrible — they’ve been living in this apartment since the 1950s.
“once the tenant leaves” not garaunteed even if there is a body bag involved – as these apartments can be passed on to immediate relatives (sucession).
“evict that tenant if i were looking to move family in that apartment” If the tenant is over 62 by the time the deed is transfered, fuggetaboutit.
Your best bet is a buyout, as mentioned. There IS a reason why that asking price looks so affordable.
There are plenty of bstoner posts in the archives about buying into RC tenants. Read up on them.
Don’t even think about this building unless it is deeply discounted – say 50% below market – yes, there is a rent contolled owner occupancy provsion on the books but probably no one has prevailed in MANY years. My guess is that this family knows how to do sucession by now as nothing has become rent controlled in many years and three unit buildings even longer than that. When the broker tells you that the person is 109 and has no relatives, just remember that they are trying to make a sale. The only way they know that there are no relatives is if they are the only other one and then you are in double trouble.
hmm interesting, its good to know the apartment will go at market value once the tenant leaves. Thanks for the info. It’s a 3 unit house, but the zoning is R6. Would that mean it would still go to market value? Also, would I be able to evict that tenant if i were looking to move family in that apartment?
I think you got that backwards – it becomes stabilized only if (not unless) it’s 6+ units.
from the faq…
If the apartment is in a building with six or more units it will generally fall under rent stabilization upon vacancy. If in a building with five or fewer apartments it will “go to market”…
Read up here –
http://www.housingnyc.com/html/resources/faq/rentcontrol.html
You most likely would have to wait the tenant out. The quicker way is a buyout. Depending on how good a deal the apartment is to the tenant, they might take a couple thousand to leave, or they might turn down an offer of a hundred grand.