It’s summer, it’s hot, and exaggerated headlines are everywhere. No, a 1.5-2.5% increase on stabilized apartments is not a “massive hike.” No, the rent laws are not apocalyptic, nor are they the “worst case scenario” for landlords. J-51/421-A deregulation still exists. Preferential rent is still a thing. You can pay up front rent on free market apartments, just no more than one month security, which needs to be returned to within two weeks of moving out. MCI’s and IAI’s were always meant for updates, not to make buildings into luxury apartments; what changed are limits on amount and the terms of the rent increases.
No idea what I’m talking about? Major new rent laws were passed in the state of NY, and people on both sides are losing their minds. I will share more of what I wrote next week in a special, extra newsletter, but I've dug into why it had to happen below.
Buyers and sellers, these laws are unlikely to significantly impact you unless you’re trying to get into the rent stabilized multifamily game. So rest easy. I’m seeing well-priced, unique properties move quickly and buyers already getting active for the fall. Property will always move here. It’s NYC.
Enjoy your 4th of July, if you’re celebrating, and scroll down for more!