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NYC Landlords Face Huge Losses Even With Rent Increase Approved By Rent Guidelines Board
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- Опубліковано 7 сер 2024
- Landlords in NYC are facing huge losses after the Rent Guidelines Board approved only a tiny rent increase that doesn't keep pace with inflation for Rent control units.
nypost.com/2024/07/02/opinion...
Landlords needs to just leave NYC. Convert all apartments into condos and sell them. And for houses just sell them. Good luck then with anyone wanting to find a place a rent but rent control is a crime IMHO and theft from landlords.
That's probably not allowed or they would have. Where would 1 million poor people go anyway?
Good luck with that. Even if the city allowed you to convert a rent-controlled building, the cost of bringing it into code compliance would be enormous.
Even in non- rent control places it is extremely difficult to pass on the increases in expenses. 😢
That's right, the rental market itself is a form of rent control.
True but the fact is rent control artificially limits rent increases with absolutely no consideration for the actual cost of providing housing.
The city itself is a big landlord and thousands of units are not up to code so they remain vacant indefinitely. Developers could build brand new buildings but good luck evicting tenants who can stop paying rent and delay eviction court for years. Developers would also be forced to have a certain number of affordable units which would evaporate any profits unless they charge above market rates for everyone else. They need an awesome billionaire vigilante to fight crime and also build units at a loss LOL.
NYCHA evicted some people last week. They still have to shelter them if they ask but I guess it motivates neighbors to pay.
NYC also does what you're saying, like 20 percent of new building apartments are often listed in the affordable housing lottery. The other rents run the building.
As the rent control laws become so restrictive as to prevent landlords from charging enough rent to sustain the business, is where these laws will become a problem. The government (under appropriate circumstances) has the “police power” to enact rent control. On the other hand, however, any rent control law must be constitutional, which means, among other things, that the law must allow a property owner the opportunity to apply for a fair return increase. I believe that eventually, with rent increases that are less than the inflation rates, it will lead to a valid court case.
Agreed. I also suspect that the just cause eviction protections that make it difficult for the owner to terminate tenancy at the end of a lease and occupy the property could result in a case. And the mobile home parks where dilapidated in-park mobile homes sell for $200,000+ when they are worthless out of the park, the mobile home sellers are charging a premium for access the rent-controlled space.
The perspective of socialist is more about an ideal. My father is a socialist and I had to make a drastic change to get into the mindset of a landlord.
They look at things in terms of ignoring the practical aspects of things and focus exclusively on social domination or power. If people are thwarted from doing certain things, then it is easier for someone who lives life like this to take advantage and dominate everyone.
Without discussing the political aspects, the ideal is everyone is happy socializing with each other and ignore their financial problems.
I remember NPR interviewed a liberal New Yorker whose parents banned them from playing monopoly. He decided to enroll in a Conservative college undercover and write a hit piece.
Funny
In Yonkers the rent increase was even less than in the city. They are killing us.
And deferred maintenance leads to violations fines and eventual abandonment of the properties.
WOW ! I COME FROM A HARD- WORKING DAD. HE WORKED 39 Years In PRODUCTION, Then He Bought 12 Rental Properties. Property Taxes in All Parts Of INDIANA, Is Pretty Cheap. I Notice, Alot Of These Bigger Cities, Are Totally, Taken Advantage of People. My Dad Accomplished, All of this from 1970. Alot Of People Who Can Make, You Guys Cold Buy So Many Houses on Tax Sale, or Fore Closures. But In the Smaller, Towns. Why Would You Want To Stay In DEBT, All your Life With 1 House. Thanks
The long term issue is in the title. "Rent increase approved," regardless of the state of rental demand, is exactly what dug NYC landlords this cavernous economic risk pit. The lobbying power of (big) NYC real estate has guaranteed decades of these approvals with no let up, and now everyone owns properties that can't take a downward market correction to rental rates without jeopardizing their mortgages. Part of approving those constant increases was a political give and take to appease for the rent control side of things, but the only thing that really matters is where it leaves people now. The people this has screwed in particular are individual/smaller property owners and tenants.
NYCCP
NYC will start to become a slum like the south Bronx back in the 1970s . Buildings will burn to the ground like they did in the 70s and 80s . I was there I saw what happened.
It won't bc they are building new buildings that don't fall under the rules. It's 6 families or more
I wonder if my cousin and her husband ever sold their condo in New York City. They’ve been living in Maryland ever since the pandemic to be near her family.
Tony it's not about emotions. NYC is mandated by law to provide shelter due to lack of it in the 60s. ( dad ran a shelter). If they allowed rents to double, say, 5 or 10 percent of the lower middle class will be at the city shelters . We already have chaos bc they took in the migrants.
Ps I agree with you in principle but once the situation is in place there are too many people in the mix to end it
True but they have literally had a certified housing emergency that entire time. Rehabbing NYCHA units cost 3-4 times as much as much as they allow private owners to pass on as a rent increase. It is almost like the crisis is caused by their solution. We put people on the moon in less time.
But private landlords are not (or should not be ) mandated to provide it. Rent that private landlords charge must be high enough to cover expenses and provide a reasonable profit. If not, why rent anything out? If the state gov't feels that they must have buildings rented out at below market rents, let the gov't build them and rend them. Why don't they do it? Because they know it's not possible without becoming a charity.
Its not possible on a large scale. I'm not saying it's great but in nyc the situation already exists so it's impossible to end without a huge upheaval of like a million people. I have planned for the future but many haven't or are new immigrants
Sad situation.... Can't increase rent to cover repair costs, and can't sell because these buildings are essentially worthless
They aren't worthless except in bad neighborhood maybe. The Chinese buy them. My neighbor got her real estate license and has buyers but can't find sellers. She keep asking me but most people I know already left
@@georgewagner7787 Majority of rent stabilized buildings are trading at a 70% discount. If she looks around she would be able to find something
Yes but discount is relative in our case. My LLs father bought the property probably 80 years ago now. So he paid maybe 25k. It's worth a million and you're right, 2 million if the next buyer tenants don't know the law. Which they won't bc they don't know English
@@thetahedgecapital1008 Not good enough, most are over 80% overvalued. Resulting from the so called remedy of 2008. They should have corrected then and stayed there.
They aren't overvalued in NYC . New people constantly come here and demand is always high. The 1 million legal immigrants every year
12:56 I still don’t feel bad about the banks failing.
You pay for it.
@@mwatercress No.
@@natrixxvision6997 You don't pay taxes or use a bank?
@@mwatercress I do those things. I just don’t care if the big banks fail. It’s their own fault for lobbying so hard for deregulation in the first place.
The Big Apple 🍎 🪱 😔
2:37 No no Tony. A socialist government is SUPPOSED TO provide all of your needs. More often they do not. That is why black markets spring up in those countries for goods and services that we take for granted. They also control your schooling, your profession, where you live, how much food you get, who you marry, how you cut your hair, and all arts, media and communications.
Utopia is a pipe dream
Are we forgetting property
appreciation ? Property
goes from 1mil up 20%
in 5 years. Doesn’t that
count for anything?
No, because the costs of running the property have gone up as well. Being a LL is a business, not a charity. You don’t see the benefit of appreciation until you sell.
In the long run there is no appreciation if cashflows don't justify it and you can't terminate the tenancy. If you can't move into your own unit or convert it to condo, what are you buying beyond a property tax bill and potential liabilities? The only reason I could see to buy one of these buildings is to buy it at a discount gambling that the Supreme Court restoring property rights.
Good luck finding a buyer to pay market prices when the existing tenant pays below market rent from 20 years ago. Eviction court is a year backlog and lawyers just waiting to charge you market prices.
2 people downstairs moved and my LL is keeping the apartments empty so he can sell. ( 1 is wrecked)
@@georgewagner7787 Under rent control that is frequently the rational move. The counter move is a vacancy tax. If it keeps going this way, it will all be like NYCHA
I wonder why socialist or democrat if they really want to help the poor why they don’t remove the property taxes and is all the way around the democrats keep raising property taxes and that helps to higher rent