Anyone familiar w/ NYC MF who could explain how this works? My group doesn't do much in NYC and I just got this deal sent to me a few hours ago. My understanding is that tenant's receive a right to renew and the LL can't re-lease at a rate that represents a percentage increase greater than that prescribed by the city gov.
The issue that I'm having is finding anything on the city's website that gives a schedule for allowable rental increases. Could anyone point me in the direction of where to find this info? We have close quickly on this one, so it'd be ideal if I could get the model banged out tonight rather than waiting for the start of business tomorrow to call the city and figure out where this info is.
Things change year-to-year but there are a few ways to increase the rent of rent stabilized buildings in new york
Looks like the question has been answered, so now I feel OK "hijacking" the thread with my anti-rent control screed.
https://www.nytimes.com/2013/07/28/magazine/the-perverse-effects-of-ren…
The problem, though, is that these programs [rent stabilization, etc.] actually make the city much less affordable for those unlucky enough not to live in a rent-regulated apartment, Mayer says. The absurdity of New York City’s housing market has become a standard part of many Econ 101 courses, because it is such a clear example of public policy that achieves the near opposite of its goals. There are, effectively, two rental markets in Manhattan. Roughly half the apartments are under rent regulation, public housing or some other government program. That leaves everyone else to compete for the half with rents determined by the market. Mayer points out that most housing programs tie government support to an apartment unit, not a person. “That is completely nuts,” he says. It creates enormous incentive for people to stay in apartments that no longer fit their needs, because they have had kids or their kids have left or their job has moved farther away. This inertia is a key factor in New York’s housing shortage. One East Village real estate agent told me that only 20 to 30 units are available in the entire area any given month.
As suspected, like the close-minded person you are, prior to posting a counter, you didn't even read the article, which specifically acknowledges what you just said, that NYC is on the path towards organically ridding itself of rent stabilization. The larger point isn't about NYC--it's about the economics of rent control and similar schemes--how they actually hurt the people they are intend to help.