Although tenant buyouts seem like they should be relatively straightforward (you give a tenant a sum of money in exchange for the keys to their unit), the truth is that there are a lot of tenant protections in place to ensure that they do not get swindled out of apartments that are rightfully theirs. As Robert Sedaghatpour of @STRATCO Property Group said during our November Monthly Meet-Up, landlords need to remember that they are coming from a position of power. With rare exception, you are in a better financial situation than your tenants, you have a better understanding of the law than your tenants, and you typically have an attorney at your disposal. Tenants, … read more
State Senator Michael Gianaris (D-Dist. 12) has drafted legislation that, if passed, will prohibit engaging in real estate transactions based on nonpublic government action and make such an act a felony punishable by up to four years in prison. The law would be similar to laws that make it illegal for individuals to purchase stock in a company based on inside information.
“There is no reason that trading on inside information on stocks is illegal, but allowing it for a commodity like real estate is allowed,” Mr. Gianaris said.
The impetus behind the law stems from a Wall Street Journal article about Amazon employees who entered into contracts for condos in Long … read more
New home sales in the United States were down in October, largely due to soaring construction costs, the elimination of tax incentives for homeowners, and relatively high mortgage rates. The number of newly built homes fell 8.9 percent from September, and 12 percent from October 2017, to a seasonally adjusted annual rate of 544,000.
The Wall Street Journal has more.
City Councilmember Rory Lancman (D-Dist. 24) has proposed a bill to form a seven-member “retail resurgence” task force that will be comprised of retailers, landlords, and representatives from labor. If the legislation passes, the task force will be … read more
The City Council’s Committee on Housing and Buildings met yesterday to discuss 18 bills that Crain’s New York characterized as being unfriendly to landlords. While it is true that majority of the legislative package will either introduce some kind of red tape to gum up owners’ operations or make existing regulations more stringent, some simply increases the amount of disclosure that owners are required to provide tenants when making buyouts. As these bills have the support of Speak Corey Johnson (District 3), there is a good chance that most will pass following some minor revisions and amendments.
They are as follows:
This bill would … read more
Mortgage rates took a pause from their recent upward climb last week. The 30-year fixed-rate average remained unchanged from last week at 4.81 percent with an average 0.5 point. It was 3.90 percent a year ago. The 15-year fixed-rate average was up to 4.25 percent with an average 0.4 point. It was 4.24 percent a week ago and 3.30 percent a year ago. Finally, the five-year adjustable rate average rose from 4.09 percent last week to 4.12 percent with an average 0.3 point. It was 3.32 percent this time last year.
The Washington Post has more.
Following a meeting with President Donald Trump, Governor Andrew Cuomo … read more
Something about the coming of winter makes the editorial boards at a host of publications begin to think about amenities, especially amenities in the ultra-luxury market. Whether it's because readers are wont to stay inside during the colder months or because real estate news tends to slow down around this time or because of some other reason is anyone's guess. What is important is that this is the time of year to see the kinds of things that extremely high-end developers are putting into their buildings as they pull out all the stops to attract residents who have enough money to have the world's most discriminating tastes.
The Appellate Division has affirmed that landlords cannot claim ignorance as an excuse should inspectors find that tenants are using sites like Airbnb to rent out their units in the short term. Furthermore, owners can still be given violations for short-term transient use and failure to provide automatic sprinklers and fire alarm systems, as required by hotels, even if they have already sent tenants letters advising them that their leases will be terminated should they continue to rent out their apartments using sites like Airbnb.
It is recommended that owners include Airbnb clauses in leases and act as quickly as possible if … read more
A 20-city index that studies property values and home sales found that prices climbed at their slowest pace in two years during the month of September, and that rising mortgage rates are having an adverse effect on demand. Released by S&P CoreLogic Case-Shiller, the study found that property values across the 20 cities increased at a year-over-year rate of 5.1 percent after rising 5.5 percent in August. This makes September the sixth consecutive month of price gain deceleration. National home prices, meanwhile, saw a year-over-year increase of 5.5 percent in September.
Bloomberg has more.
Brooklyn Borough … read more
While the law guarantees tenants a lot of protections to keep unscrupulous landlords from entering their apartments, the law provides less leniency to tenants who fail to sign their renewal leases. So long as landlords provide tenants with the opportunity to renew their stabilized leases in compliance with the law (see § 2523.5 of the Rent Stabilization Code), the landlord is allowed to, according to § 2523.5(c)(3), "elect to commence an action or proceeding to recover possession of a housing accommodation in a court of competent jurisdiction...where the tenant, upon the expiration of the existing lease or rental agreement, fails to timely renew such … read more
Though wages are increasing, the costs associated with owning a home are rising at an even faster rate. Consequently, many potential buyers in cities with strong housing markets and booming economies, like Dallas, are unable to find a home they can afford.
As the era of cheap credit comes to an end, the problem of affordability in the nation’s housing market is expected to become only more severe unless wages begin to skyrocket, home prices come down, or costs for builders drop precipitously. As the second option is the most likely, many builders are now weary of expanding, as they do not want to be overleveraged when the market turns. This is keeping inventory … read more
Existing-home sales were up 1.4 percent in October, reaching a seasonally adjusted annual rate of 5.22 million. This was a break in a trend of decline, which has seen sales drop from month-to-month for the past half year. This has added up. The number of sales in October were 5.1 percent lower than October 2017, which is the largest annual drop since 2014.
Economists believe that there are numerous factors affecting the existing housing market, the most notable of which is rising mortgage rates. Rates this week for a 30-year fixed rate mortgage averaged 4.81 percent, compared with 3.92 percent a year ago.
A shortage of inventory and rising home prices are also … read more
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Love it or hate it, Amazon’s decision to build half of its second headquarters, HQ2, in Long Island City will be transformative for New York City. Those who are in favor of Amazon’s decision note that HQ2 will bring jobs to the city and an enormous influx of wealth and development to northwestern Queens. Detractors contend that $3 billion in taxpayer money was handed over to Amazon, that the trillion-dollar company will only invest $2.5 billion in local infrastructure, that existent communities in North Brooklyn and much of Queens will be irrevocably changed, that the waves of gentrification and displacement that have rippled throughout … read more
This service gives members instant access to LNY in house DHCR, HPD, and Property Management Counselors for immediate help when you need it.
Just like a concierge at a hotel who knows how to guide guests and to remove some of the uncertainty of trying something new, our staff counselors goal is to provide information and guidance to landlords and to take much of the uncertainty out of owning and operating a property in New York.