Renter Seeking Advice

barnable · May 2009

I live in a rent stabilized apartment and my rent is going to go up come July and it is going to go up a fair bit of money. From my friends and through the grapevine, I keep hearing about renters getting their landlords to either lower or maintain their current rental costs. I am trying to determine whether I have any bargaining chips when it comes to approaching my landlord and asking for a reduction in rent. I pay up every month on time without fail, have lived in my apartment for coming up now 3 years, and have never really given the management company much of a headache. Any advice? Suggestions? Again, bear in mind, I live in a rent-stabilized building and so I am under the impression that that changes the game.

chuleta · May 2009

How much is your rent, how big is your apartment, and where is it located? The question is if you are well under market value or not. Also, is the building in decent condition?

snowboardqueen · May 2009

Subject: Established Rent Increase Guidelines For Rent Stabilized Apt

If you live in a Rent Stabilized apartment, the rent can only go up according to the percentage established by the rent guidelines.

Last year is was %4.5 for a 1 year lease AND
%8.5 for a two year lease.

domino · May 2009

Subject: Stabilized vs. Market Value

If your rent is currently well below the market value, I would not rock the boat. Since it is stabilized, it can only increase by the standard percentage allowed. Question: What would it cost you for a comparable apartment in the area? Do some research on craigslist and here - you may be surprised. One man's burden is another man's bargain.

bohuma · May 2009

You said you've lived there three years, chances are that even though it's rent stabilized, you are close to the market rate (otherwise the landlord would have done more work on the apartment to get it up to market value three years ago). It is not going to cost you anything to ask for a smaller rent increase and if the landlord says no, you can then weigh your choices. I'd be surprised if your landlord cares whether you stay or go, at the right price there's always another tenant, especially now that people are having difficulty financing purchases. The luxury end of the rental market may be dropping but the bottom two thirds is usually pretty stable.

barnable · May 2009

The building is pre-war. The apartment is decent condition. It could use a little work here and there. That said, it is a big one bedroom. Separate living room. Separate kitchen. Big bedroom. I started paying 1250 and come July, I will be in the 1400 to 1450 range. Not that big of a jump but, in this economic climate, a rent increase is no joke. Checked out CL and it's around market rate and I am in Prospect Heights proper. Not in Crown. Not on the border. So, unless anyone advises otherwise, I gotta stick out or go.

bohuma · May 2009

$1450 for a big one bedroom is pretty good. Even if the landlord doesn't increase the rent by the full amount allowed, what they'll do is increase the legal rent by the maximum and give you a "preferred tenant discount" which means that they can jack it up to the legal rent whenever you renew the lease. RS is good for you in that you have a guaranteed renewal. RS is also bad because most tenants think (rightly or wrongly) that they've got a good deal and stay for longer than they would if RS didn't exist, landlords know this and do the bare minimum maintenance. In a free market with a healthy vacancy rate, landlords have to compete to get tenants so they keep improving their buildings - although there's always a market for ratholes.

landlord · May 2009

Your rent can only go up to 1356 if you sign a 2 year lease. if its over 1400 they are charging you to much. Unless they did some major work at your apartment which would add to the rent.

I agree with bohuma. even if your rent is 1450, you are getting a great deal for a large 1 bedroom and will not find something in that area for less.

You can always ask the landlord to lower the increase. it never hurts to ask. I would gladly keep the rent the same for a tenant who has made rent payments on time and has not caused any problems.

crustythor · May 2009

i was under the impression that if you get a preferential rent agreement (ie, lower than what the landlord is allowed to charge with the stabilization) then you have basically voided your stabilization - meaning that the next time you renew, the landlord is free to raise the rent to whatever level he/she chooses, and is no longer bound by stabilization guidelines. is that true?

bohuma · May 2009

crustythor wrote: i was under the impression that if you get a preferential rent agreement (ie, lower than what the landlord is allowed to charge with the stabilization) then you have basically voided your stabilization - meaning that the next time you renew, the landlord is free to raise the rent to whatever level he/she chooses, and is no longer bound by stabilization guidelines. is that true?

I am not a tenant lawyer, but my understanding is that all RS leases must state the legal rent, a discount may also be stated. If an apartment is stabilized, it can only be destabilized during a tenancy if the legal rent goes above $2,000 per month and the tenant's household income is above $175,000 two years in a row. An apartment can be destabilized on vacancy, but not otherwise. Just because a landlord and tenant make an agreement for a lower rent does not destabilize the apartment. The Rent Stabilization Law is quite strict about when apartments can be destabilized and landlords who don't follow the rules are courting trouble.

If you think you are being overcharged for a rent stabilized apartment, i.e. you believe the rent you are paying is higher than the legal rent, you should seek advice from a tenant advocacy group as soon as possible.

modsquad · May 2009

There are reasons why a landlord wants the appearance of a higher rent and the desire to keep up with the legal limit. It might be more palatable to the landlord to give a free months rent as opposed to a rent reduction over the term of a lease. I deal with commercial buildings where it was important for the sake of borrowing money to show a healthy rent roll. Giving back to the tenant was a one time agreement made in writing between LL and Tenant.

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