NYC Rent Stabilized Apartments Could See 9% Rent Hike
New Yorkers who live in rent-stabilized apartments may see their rents increase as much a 4.5% on a one-year lease and 9% on a two-year lease. The Rent Guidelines Board is set to vote on a measure that could result in this significant hike for nearly 1 million apartments.
Yes, this could hurt many tenants who are barley getting by now. But what about small property owners that have carried the burden of increased costs? It seems Mayor Adams may be siding with the “mom and pop” landlords on this one. Adams said in a recent news conference, “We must be fair here — allow tenants to be able to stay in their living arrangements, but we need to look after those small mom-and-pop owners”. “If you invested all your money into a 10-unit house, and you cannot pay the bills, you could lose that.”
Tenant advocate groups are furious with the proposed “steep” rent hikes and have demonstrated and protested the pending vote. A 9% rent increase would be the largest increase since 1990. Some believe this will increase the already growing population of homeless New Yorkers.
According to a recent article in the New York Times, Adrienne Adams, the Council speaker, called the proposed rent increases “unconscionable” and said it would “only exacerbate the housing and homelessness crises confronting our city.”
Yet, something needs to be done. Small property owners struggled to keep up with a pandemic that made it hard to collect rents and evict tenants who fell behind on payments. Now, add in the rising cost of goods and services, and some property owners are in the red, with the real possibility of losing their investments.
Chris Anthinoes, a small apartment owner in Brooklyn, recently told FOX 5 NY the Rent Board must raise the rents. "Costs have just skyrocketed. Fuel has gone up. We have a lot of mandates from the city council like new energy efficiencies, lead paint abatement, facade improvements," Athineos said.
In the same FOX5 NY article Vito Signorile, President of The Rent Stabilization Association, which represents 25,000 landlords stated, "Owners were still required to pay all of their expenses, mortgages, property taxes, water bills, heating expenses and, in addition, all of those expenses went up over the last two years."
And that is the real issue for property owners and managers. Costs!
Fuel costs have once again risen to new heights. Inflation is on the rise. Costs for maintenance services such boiler repairs and building improvements have exploded.
There will be a reprieve of fuel costs due to the warm weather coming but that is only a band-aid on a bigger problem.
Now is the time to assess your building for cost savings. Get a free quote on installing a much needed an energy management system.
Contact us at firstname.lastname@example.org for your free emc20/20 quote.
Sourced from: https://www.fox5ny.com/news/new-yorkers-rent-hike