Can I reclaim a space that I've rented out at the end of a two-year lease?

I have a question as a landlord regarding the non-renewal process for a two-year lease. I’ve rented out a ground floor space in the South Slope (above 4th and below15th) to a non-profit organisation for $1000 utilities included. Works out to about $12 a square foot for a 1000 sq ft space. The tenants are conducting a pretty extensive renovation with donations they’ve received. This is why I’m giving them such a low rate. I made it clear to them that I could not give them a three-year lease because we would likely want the space back before then. I suggested they not spend too much but they don’t seem to have listened. I’m glad it’s being renovated despite some of the more permanent alterations such as removing closets and a pocket door.   Given the level of their investment in the reno, I’m worried they are planning to resist when I give them 90 days notice of non-renewal. This is a two-family so my expectation is that it does not qualify as rent-stabilized. However, I live outside the city and read somewhere in the nyc housing guidelines that I should register with HUD because of this. Yikes! I’m currently feigning ignorance of this frightening piece of info and am more concerned than ever that I may not be able to reclaim the space when their lease expires a year and a half from now. Am I being paranoid? Does anyone have any knowledge from a landlords perspective about this kind of situation?

countylineman

in Landlord 12 years and 8 months ago

6

Please log in, in order to post replies!

6 replies

Newest Oldest

elbow | 12 years and 8 months ago

string(1) "1"
object(WP_User)#4895 (8) {
  ["data"]=>
  object(stdClass)#4883 (12) {
    ["ID"]=>
    string(6) "177161"
    ["user_login"]=>
    string(5) "elbow"
    ["user_pass"]=>
    string(34) "$P$BKnX8zyZxQQrEZb8oVvlJQppBrN3dO0"
    ["user_nicename"]=>
    string(5) "elbow"
    ["user_email"]=>
    string(17) "leeb155@yahoo.com"
    ["user_url"]=>
    string(20) "/forums/users/elbow/"
    ["user_registered"]=>
    string(19) "2017-08-10 14:26:00"
    ["user_activation_key"]=>
    string(0) ""
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(5) "elbow"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(177161)
  ["caps"]=>
  array(2) {
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(2) {
    [0]=>
    string(10) "subscriber"
    [1]=>
    string(15) "bbp_participant"
  }
  ["allcaps"]=>
  array(4) {
    ["read"]=>
    bool(true)
    ["level_0"]=>
    bool(true)
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

What’s the C of O classification of the ground floor space? If the ground floor is listed on your C of O as an apartment, see below for NYC Zoning Resolution re: home occupation. Further, if there are young children involved there are other City and State requirements. Home Occupation* A home occupation is a business operated by the occupant(s) of a dwelling unit, which is accessory to the residential use. It is generally restricted to no more than 25 percent of the floor area of the dwelling unit (500 sq ft maximum). Occupations that may generate excessive noise, odors or pedestrian traffic are not permitted. If the C of O lists the ground floor as a store, then no one is supposed to live in the space, but you can freely terminate tenancy at the end of the lease.

daveinbedstuy | 12 years and 8 months ago

string(1) "1"
object(WP_User)#4894 (8) {
  ["data"]=>
  object(stdClass)#4893 (12) {
    ["ID"]=>
    string(4) "3864"
    ["user_login"]=>
    string(13) "daveinbedstuy"
    ["user_pass"]=>
    string(34) "$P$BtJYyObAQmff2MQp.qFP7/kmwU1bBZ1"
    ["user_nicename"]=>
    string(13) "daveinbedstuy"
    ["user_email"]=>
    string(19) "djl135e54@yahoo.com"
    ["user_url"]=>
    string(55) "http://bstoner.wpengine.com/forums/users/daveinbedstuy/"
    ["user_registered"]=>
    string(19) "2017-08-10 14:23:53"
    ["user_activation_key"]=>
    string(0) ""
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(13) "daveinbedstuy"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(3864)
  ["caps"]=>
  array(2) {
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(2) {
    [0]=>
    string(10) "subscriber"
    [1]=>
    string(15) "bbp_participant"
  }
  ["allcaps"]=>
  array(4) {
    ["read"]=>
    bool(true)
    ["level_0"]=>
    bool(true)
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

It sounds like there’s been a lack of communication all along given that they progressed with the renovations if you actually did tell them originally that you’d be taking back the space.

elbow | 12 years and 8 months ago

string(1) "1"
object(WP_User)#4890 (8) {
  ["data"]=>
  object(stdClass)#4896 (12) {
    ["ID"]=>
    string(6) "177161"
    ["user_login"]=>
    string(5) "elbow"
    ["user_pass"]=>
    string(34) "$P$BKnX8zyZxQQrEZb8oVvlJQppBrN3dO0"
    ["user_nicename"]=>
    string(5) "elbow"
    ["user_email"]=>
    string(17) "leeb155@yahoo.com"
    ["user_url"]=>
    string(20) "/forums/users/elbow/"
    ["user_registered"]=>
    string(19) "2017-08-10 14:26:00"
    ["user_activation_key"]=>
    string(0) ""
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(5) "elbow"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(177161)
  ["caps"]=>
  array(2) {
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(2) {
    [0]=>
    string(10) "subscriber"
    [1]=>
    string(15) "bbp_participant"
  }
  ["allcaps"]=>
  array(4) {
    ["read"]=>
    bool(true)
    ["level_0"]=>
    bool(true)
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

Are they actually using the space as an apartment?

eme1million | 12 years and 8 months ago

string(1) "1"
object(WP_User)#4895 (8) {
  ["data"]=>
  object(stdClass)#4897 (12) {
    ["ID"]=>
    string(5) "38269"
    ["user_login"]=>
    string(11) "eme1million"
    ["user_pass"]=>
    string(34) "$P$BLuFisLPfb/xa/ZgDQhM4n10P08/hW0"
    ["user_nicename"]=>
    string(11) "eme1million"
    ["user_email"]=>
    string(18) "jbattis@chpnet.org"
    ["user_url"]=>
    string(18) "/forums/users/eme/"
    ["user_registered"]=>
    string(19) "2017-08-10 13:50:16"
    ["user_activation_key"]=>
    string(0) ""
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(11) "eme1million"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(38269)
  ["caps"]=>
  array(2) {
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(2) {
    [0]=>
    string(10) "subscriber"
    [1]=>
    string(15) "bbp_participant"
  }
  ["allcaps"]=>
  array(4) {
    ["read"]=>
    bool(true)
    ["level_0"]=>
    bool(true)
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

Just talk to the tenant and reiterate that you do not plan to renew the lease.  Legal problems happen when two parties have a mis-understanding – usually due to wrong expections and lack of communication. Don’t start calling lawyers or making threats.

fractalogical | 12 years and 8 months ago

string(1) "1"
object(WP_User)#4896 (8) {
  ["data"]=>
  object(stdClass)#4894 (12) {
    ["ID"]=>
    string(5) "73067"
    ["user_login"]=>
    string(13) "fractalogical"
    ["user_pass"]=>
    string(0) ""
    ["user_nicename"]=>
    string(13) "fractalogical"
    ["user_email"]=>
    string(17) "drhagus@yahoo.com"
    ["user_url"]=>
    string(20) "/forums/users/qbert/"
    ["user_registered"]=>
    string(19) "2017-08-10 14:30:02"
    ["user_activation_key"]=>
    string(20) "bqzsS6Umxwc11eBXoy0H"
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(13) "fractalogical"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(73067)
  ["caps"]=>
  array(2) {
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(2) {
    [0]=>
    string(10) "subscriber"
    [1]=>
    string(15) "bbp_participant"
  }
  ["allcaps"]=>
  array(4) {
    ["read"]=>
    bool(true)
    ["level_0"]=>
    bool(true)
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

You can check with DHCR whether the apartment is regulated, but that would be unusual in a 2-family. It does not matter if you signed the original lease using a rent-stabilized lease form since that has no bearing on the regulation status of the apartment.  Unregulated housing does not require 90 days notice of non-renewal — once the lease runs out and you do not continue to accept their rent they would be subject to eviction as holdover tenants (but hopefully it won’t come to that). Once the lease expires, my understanding is that tenants in unregulated housing effectively become month-to-month tenants and 30 days notice is all that is required. But as the first poster said, it’s best to consult with a lawyer, especially if you anticipate difficulties.

anotherposter | 12 years and 8 months ago

string(1) "1"
object(WP_User)#4890 (8) {
  ["data"]=>
  object(stdClass)#4898 (12) {
    ["ID"]=>
    string(5) "53767"
    ["user_login"]=>
    string(13) "anotherposter"
    ["user_pass"]=>
    string(34) "$P$Bq7XUGtTb.5jsWjD4iMAO7rQGswiJX0"
    ["user_nicename"]=>
    string(13) "anotherposter"
    ["user_email"]=>
    string(24) "mail.anon.user@gmail.com"
    ["user_url"]=>
    string(28) "/forums/users/anotherposter/"
    ["user_registered"]=>
    string(19) "2017-08-10 13:38:06"
    ["user_activation_key"]=>
    string(0) ""
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(13) "anotherposter"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(53767)
  ["caps"]=>
  array(2) {
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(2) {
    [0]=>
    string(10) "subscriber"
    [1]=>
    string(15) "bbp_participant"
  }
  ["allcaps"]=>
  array(4) {
    ["read"]=>
    bool(true)
    ["level_0"]=>
    bool(true)
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

Sounds like you should talk to a real estate attorney who works in Brooklyn.  The cost of a consultation now could save you a lot of money and trouble later.