Q: A 12 months in the past, I moved into an condominium in a Brooklyn construction for $3,800 a month. The rent I signed said that base hire was once $4,800, however I used to be being given a concession. Anxious that rents may upward thrust, I negotiated a rider proscribing my hire building up to $200, and when my rent ended, my landlord presented me a brand new one for $4,000 a month. However once I did a little analysis, I realized that the condominium is in fact hire stabilized, so hire will increase will have to be restricted to the volume set by means of town. However the landlord says that my base hire is $4,800, describing my decrease fee as a concession. Is that this proper or can I problem it?
A: As rents plummeted in 2021, landlords passed out concessions, providing renters deep reductions. Now, as the ones rentals expire amid a sizzling condominium marketplace, tenants are reporting hire hikes of 30 or 40 p.c. This whiplash is occurring amongst tenants with market-rate rentals as a result of, as you identified, will increase for rent-stabilized rentals are set by means of the Hire Tips Board, now not the owner.
Your landlord, then again, seems to have selected their phrases moderately. Should you gained a “concession,” you then didn’t obtain what’s referred to as “preferential hire,” by which landlords set a hire not up to the volume they may lawfully acquire on a rent-stabilized condominium. Below 2019 adjustments to New York State regulation, as soon as a landlord gives a rent-stabilized tenant preferential hire, that turns into the brand new base hire. So this 12 months, your building up could be capped at 0 p.c for the primary six months and 1.5 p.c for the second one six months of a one-year rent, bringing your per 30 days bills as much as $3,857 by means of the second one part of your time period. (To determine whether or not an condominium is rent-stabilized, a tenant can post a request about their hire historical past with the state.)
You’re in somewhat of a prison grey house at the moment, since the courts have given landlords some wiggle room about what quantities to preferential hire and what’s a one-off bargain or concession (be mindful, the adjustments to the regulation are nonetheless reasonably new). “It’s arduous to grasp at this level what the usual goes to be,” mentioned Ronald S. Languedoc, a Big apple legal professional who represents tenants.
It’s worthwhile to problem the rise ahead of you signal the rent, hiring a legal professional to write down the owner a letter in your behalf. If that doesn’t paintings, signal the rent, pay the upper hire, and problem the rise later. You wouldn’t be waiving any rights if you happen to comply with the upper sum as a result of you can’t signal away the rights of rent-stabilization, in keeping with Mr. Languedoc.
There are two techniques to problem the rise: It’s worthwhile to record a criticism with the Department of Housing and Neighborhood Renewal, the state company that oversees rent-stabilized residences. Or, it’s worthwhile to sue the owner and notice how a pass judgement on laws. Should you win, you’re going to recoup no matter overcharges you’ve paid.
For weekly electronic mail updates on residential actual property information, enroll right here. Apply us on Twitter: @nytrealestate.
