What to do about rent?

We have a brownstone in Carroll Gardens that has been handed down through the family, some of the tenants have been there a long time and are paying far below what the rent should be (they are paying $950 for a 2 bedroom not rent controlled) how would you go about getting this rent to where it should be without losing a good tenant?

seanfitz

in Real Estate - Rentals 10 years and 5 months ago

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brokelin | 10 years and 5 months ago

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You asked how to raise the rent without losing a good tenant … so that makes me think you’d like to keep the tenant. If that is the case, raise the rent in smaller amounts, like $100 or $150 each year. That is how you are most likely to keep the good tenant. But, really, you can’t control what a tenant does. You could raise it to market rate quickly (or, more smartly, a bit under market rate – always the best way to attract and keep good tenants in a brownstone) – and two things can happen. They could decide to move (because they can’t pay, or don’t want to pay, market rate) – and you have to be prepared for this to happen if you do this – you have to recognize that you don’t control their decisions. Or they could decide to stay – they could very well know what market rate is, and if they like their home, and are willing and able to pay more, they may decide to stay. However, once they are thinking about paying, or start paying, close to market rate, they will look to see whether they are getting what they can get for that rate elsewhere. So, if your family has not maintained the place well, or fixed things, then thinking you can get market rate for the place without bringing the place up to the level of the market is a delusion on your part. Before you do anything, you should check with the laws – on rent control and stabilization, on evicting older tenants, and on constructive eviction.

Rick | 10 years and 5 months ago

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Always a problem when rents fall far behind the market rate. It’s always better to raise it a little once a year. Unfortunately you are stuck. I would give lots of advance notice that you will need the space empty for renovation. Be specific on a move out date. Good luck.

klilly | 10 years and 5 months ago

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There is no easy way to do it unfortunately. This is one of those areas that it is better short, sharp and to the point. They have to move. If you agree to raise the rent slowly…they will want more and more done… when was the last time they had a paint job? they will want a new kitchen or at least a new stove etc. You will just be making life difficult for everyone, because there is no easy way. It is better to give them notice and start again. Hopefully they will have saved some money for a down payment somewhere, but not likely

GreenThinker | 10 years and 5 months ago

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Better to start fresh, give them a vacate notice and if they ask; tell them you’re taking it back for yourself. They are nice because the rent is 950; things get nasty when you tell them you’re gonna be charging what ever the market value is.