A Different Rental Calculus for Brownstoners
If it means getting a few hundred dollars less in rent every month to have the right person living here, it is well worth it. That’s what an owner of a two-family Brooklyn brownstone told The New York Times in an article over the weekend, echoing the sentiments that many of us have undoubtably felt…
If it means getting a few hundred dollars less in rent every month to have the right person living here, it is well worth it. That’s what an owner of a two-family Brooklyn brownstone told The New York Times in an article over the weekend, echoing the sentiments that many of us have undoubtably felt over the years. (We’ve had the same tenant in our garden-level rental since we moved in in 2005 and raised the rent less than $100 over that time.) According to The Times, brownstone owners may be able to start raising their rents without fear of their favorite tenants fleeing to new high-rises. Many of the new high rises in Brooklyn are rented out or at least have enough units rented that some of the most aggressive incentives are being taken off the table. As a result, the time on market for rentals in small buildings has come down from 65 days to 35 days in the last two years, according to an internal Corcoran memo that The Times got its hands on. As The Times notes, there’s no comprehensive listing service for Brownstone rentals (something we’d like to change!) and the inefficiency in the market–combined with some of the intangibles like the value to a landlord of having a pleasant tenant–mean that deals can still be had. It is a market where it’s hard to pinpoint pricing because many brownstones are owner-occupied, said Andrew Barrocas, the chief executive of the Real Estate Group New York. Some of these landlords are not always looking for the highest prices, but the right tenant.
High-Rises Cede Rental Ground to Brownstones [NY Times]
I am also lucky that I have two rental apartments and have great tenants in one, and a family member in the other to help me out. Both apartments low or below market.
Nightmare tenants I had inhereted with the house the first year (who I eventually had to get out through housing court) screamed regularly that the rent was too damn high. Re-rented with the same rate for four years with two different sets of tenants – they’ve been happy with the rent.
I’ll trade tenants from Hell stories, MM, the next time I see you. I inherited a complete lunatic in my duplex when I got it, or maybe I should say she was a kind of sociopath, a crazy woman from Rome, graphic artist running a kind of rooming house in my building. We had people all over the place, sleeping in hammocks in the back yard. The stories go on and on with her — if it wasn’t me, I would say that the whole thing was hilarious (my father used to ask for stories) but it WAS me and she gave me almost 9 months of hell until the NYS Tenant Landlord court system relieved me of her. I got all my money too.
It was from this that I learned in a bone deep kind of level, the value of a good tenant. I also learned the value of doing a thorough check on tenants BEFORE you sign a lease.
BYE BYE MONICA.
I don’t mean to suggest that I am vacationing with my tenants either. But we garden together and every month or so there will be some spontaneous reason to hang out and have a beer together or whatever. The main thing being I am not the kind of person who relishes the power dynamics of a typical landlord/tenant relationship.
Although I have floor-thru apartments in my house, each easily large enough for two adults and a kid, when I have had tenants I have preferred single people and give them rent that is quite a bit lower (about 2/3 market). I do tell them that the rent will go to market when/if they bring in a room-mate or boyfriend/girlfriend.
This went awry only once, when a nearly perfect tenant of almost 10 years fell in love and the girl secretly moved in in. She made extra subletting her tiny rent controlled place in Manhattan. When I found out and raised the rent as per our original agreement, they went ballistic, telling me “You’re just a greedy pig landlord and only in it for the money.” They moved out, to the tiny rent control place. I calmly cleaned out the apartment and moved my kid’s room up there. I haven’t rented it since.
He came back a few months later to pick up some things he’d left behind, and was astonished we hadn’t rented it yet. He lamented his bad judgment – seems the relationship lasted about six more weeks, then he had to look for a new place and was paying about $300 more than the “high” rent he protested when he stormed out.
We’re probably going to have to rent one or two of the apartments again in the next several years, and I can only hope I find a tenant as good as this guy was. 10 years was a pretty good run.
Oh well. You live and learn.
When I got my house, I inherited the two tenants who were already there. One was a bum I ended up having to evict, the other was a huge family who always paid on time, but wore the apartment out. They also didn’t want to bother me to repair stuff, and it turned out they had a faucet in the bathroom that didn’t completely turn off that ran for literally months before I found out about it. It was only when I got a water bill from hell, and I asked them if everything was ok that I found out the faucet was broken. They eventually moved to a larger apartment on their own.
So after those experiences, my first and only as a landlord, I’m so happy with who I have now. My house is like a big family, but I know that is unusual, and it would not be like that if the mix of people had been different. We definitly are not running up and down stairs into each other’s apartments all day. We all like our privacy.
I agree with all the sentiments above. And this is true as a landlady in Brooklyn out of the Brownstone belt. I have had great tenants in my home for 4 out of the 5 years I’ve been in my house. I have not raised rent in 4 years and don’t intend to in the near future to maintain good tenants.
A cordial business relationship is the best approach. The advantage of owner occupied buildings to tenants is that their issues are my immediate issues too i.e. heat, hotwater, cleanliness, security, etc.
I don’t know this article can’t be true for any brownstone landlord–the ones that live in the same building as their tenants. I don’t know if I agree with the sentiment that you must have a personal relationship with the tenants though–I am cordial with mine, and responsive to issues, but we are not vacationing together any time soon.
I agree with the others. I’m just about to go into the third year with the same tenants. I cut their rent $50 a month in the second year. They take out trash and shovel snow when I’m not around.
This article rang true with me, as does what Wasder says above. Since it is my house, where I live, I want stability and peace. I am not looking to wring every last dollar out of the tenants. I am lucky enough to have excellent ones. These are people with whom I have a great working relationship. They conform to my one big rule – rent on the 1st – and I take care of them and the building. They know how to distinguish an emergency from something that can wait a few days.
Rob, I agree with most of what you write, but I have to say that a new buyer is sometimes nervous about getting a bad tenant which might explain their screening behavior. And most of the people (like me) who buy houses are very busy people, don’t have time or interest to be watching the tenant’s every move. I have no interest whatsoever what they do as long as it is not too loud and legal and doesn’t damage the house. And I never knock on doors. The rule is on the first or before, just slide the check under the door. We are all grownups and it is a pleasure.