Rent-Regulated Tenants: A Boon for Buyers?
Can rent-regulated tenants make buildings more attractive to prospective buyers? They sure can, according to the cover story in the real estate section of yesterday’s Times. The article examines the pluses and minuses of buying a property that comes with rent-controlled or rent-stabilized tenants in tow. A family that purchased a four-story brick house in…
Can rent-regulated tenants make buildings more attractive to prospective buyers? They sure can, according to the cover story in the real estate section of yesterday’s Times. The article examines the pluses and minuses of buying a property that comes with rent-controlled or rent-stabilized tenants in tow. A family that purchased a four-story brick house in Carroll Gardens for $1.5 million, for example, found that one big plus was a price tag that was about $1 million less than it would have been if there weren’t two rent-controlled apartments on the top floors. The major potential minus with such properties, of course, is the hassle owners can encounter when they try to give such tenants the heave-ho. (Check out the debate over the situation at former HOTD 227 Berkeley Place.) Any landlords care to weigh in on the pros and cons of having rent-regulated renters? Have any readers taken advantage of the rent-regulation discount?
When the Price Includes Tenants [NY Times]
Photo by bondidwhat
I got a better one for you. This person I know, had not lived in this rent controlled aparment for over 20 years. During that time moved to another state, lived with friends, lived on their own, various other places and arrangements, etc. Parent had lived there for 40 years and sadly got a terminal illness ultimately residing in hospice never to be back home again. Person quickly moves back in, tells landlord, mail was delivered there, clothes were in the closet, where and whom they slept with is nobody’s business. Awaiting appropriate offer from lanlord to leave.
I would be morally wrong to throw out a elderly person on a fixed income who has lived an entire life in one place never mind illegal. Problem is, the laws do not distinguish between the two and there are many people abusing the system simply because they can.
Landlord here,
I’ve said it before, but my problem is with the people who cheat the system. I’d guess at least 50% of my rent regulated tenants use their apartments on a part time basis. It’s nearly impossible for me to evict them since they get their mail and are registered to vote at their regulated apartments. I’ve hired private investigators in the past who generally charge about $3000 for a basic investigative report. By the time legal fees are including, we’re talking big bucks to try and evict somebody who’s paying $600/mo rent to maintain his regulated apartment but is really living somewhere else.
All the tenant has to do is move back into the apartment and the case is closed. Thousands of dollars are out the window for the landlord and a month later, the guys is MIA again.
The system is joke. The problem is not the 20% of old ladies scooting around with their grocery bags who have no where else to go. The big problem for landlords are all the cheats who are nearly impossible to evict.
12:31,
I don’t think anyone condones putting elderly grandmothers on the street. What I do think we can all agree on though, is how ABSURD it is that a “younger family member” will inherit the apartment.
The owners should be able to realize market rate rents from this apartment at some time in the future as opposed to SUBSIDIZING the younger family member for life.
Sandy
So how’d we go from little old penniless widows to lazy ass six figured bums buying designer clothes? Anecdotal tales of the latter do not justify the gleeful attempt from many on this thread to toss the former out to the curb.
I’ve never seen so many people eager to wax righteously indignant about a topic, and then believe as gospel, the worst of the worst, as if everyone is living scott free.
I think the rent control laws need to be amended big time to get rid of the people who abuse it. But I don’t want to see more stories about 88 year old grandmothers and grandfathers being tossed out into the street because some yuppie decides to move on up. Where is your humanity?
Seems to me the louded cries of “that isn’t fair” come not from landlords who aren’t breaking even, which is understandable, but more from people who are just envious that they don’t have a chance to get the same deal.
9:07 is exactly completely right. It’s all about fear of losing votes. It’s the only reason rent control exists.
The only person I know who has a rent control apartment makes six figures a year. Hardly in poverty!
A tenant’s desire to hang onto the good deal, so they can spend the extra money on designer clothes, is what I personally call “greed”. It’s not greedy for a homeowner to simply want to cover the cost of the apartment maintenance and its heating bills. To want your own investment, the risk YOU took on, to pay off to its full potential benefit, that’s not greed. That’s called normal. The most commie thing about it all is the fact a family member can inherit the apartment. So utterly absurd.
8:52pm,
Private property rights and charity are two completely different things.
There’s nothing wrong with voluntarily giving somebody a rent break, but being forced by local laws to charge $200/mo for an apartment that costs a landlord $400/mo in utilities, maintenance, and property taxes is totally unfair to a private landlord.
The NYC government never compensated landlords for rent control when it was put into effect during WWII as an EMERGENCY MEASURE so wives wouldn’t be evicted while there’s husbands were away fighting in the war.
The only reason the laws are still in effect is because RENT CONTROL TENANTS vote and don’t want to lose the great deals.
POVERTY and RENT CONTROL have NOTHING to do with each other.
8:31: Maybe because there are not enough people like 1:18 who believe in doing good, perhaps at an economic loss. Maybe it’s because you (and others who rant about rent control) are so caught up with property rights and so caught up with your own needs that the possibility that someone else may be needier than yourself has never occurred to you.
And, 5:45 I don’t know which prior post you made (the joys of being anonymous) but my comment was not about being against rent control, but criticizing someone doing good for their fellow (wo)man.
Rent controled tenants paid ZERO for their great deals.
They did ABSOLUTELY NOTHING to deserve basically free rent.
The goverment doesn’t subsidize them, private tax paying individuals do.
There’s no rational defense of the rent control laws. Whatever market price a buyer pays for a property does not justify other individuals, who, by the way never paid anything for the building, living nearly rent free for the rest of their lives.
It’s unconstitutional and a depravity of human rights.
I wish I had a rent controled apartment.
Imagine waking up one day and never having to worry about paying rent again!
Why can’t we all have rent controled apartments?
In a perfect world with folks like 1:18pm running things, nobody would be poor, nobody would be homeless, and everybody could sit outside on the stoop and play dominos all day long!!!