I'm looking for a primary residence. I see a few places for sale significantly under market because they are rent controlled - which makes sense - the mandated lower rent limits income potential and therefore makes the apartment worth less to investors. However, if I buy a place, why can't I just tell the person that I'm not renewing their lease at its end and live there myself? This would be me... [more]
I'm looking for a primary residence. I see a few places for sale significantly under market because they are rent controlled - which makes sense - the mandated lower rent limits income potential and therefore makes the apartment worth less to investors.
However, if I buy a place, why can't I just tell the person that I'm not renewing their lease at its end and live there myself?
This would be me living there, not a brother or son or "cousin". I would be looking to move in and live there for at least 5 years. I'm just assuming there's some hook I'm missing (like I'm obligated to perpetually renew a rent-controlled lease even if I want to live there).
The research I've read online makes it seem like if I live there for three years, it's no longer rent-controlled, but then there are weird comments about it only being if an "original owner" buys it, and nothing really about just telling people you aren't going to renew the lease.
Any help?
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Response by alanhart
about 17 years ago
Posts: 12397
Member since: Feb 2007
For as long as the rent regulations remain as they are, and assuming the sitting tenant(s) and the legal rent do not exceed certain maximums, you will be obligated to offer renewal leases in perpetuity. A landlord's right to take an apartment for personal use does not apply in the case of the purchase of coop units.
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Response by liulide
about 17 years ago
Posts: 36
Member since: Jan 2009
not in perpetuity, but the tenant does have the right to renew until he/she dies. unless there was a relative living in the apartment for 2-3 (i forget exactly) years before his/her death, in which case that relative would have the right to take over the lease.
if you own that apartment, your only hopes of living there are: the tenant dying or evicting the tenant b/c he/she was there illegally, either by the facts that he/she makes too much money or not using the place as the primary residence.
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Response by 30yrs_RE_20_in_REO
about 17 years ago
Posts: 9913
Member since: Mar 2009
If you are talking about buying a BUILDING, then there is a carve out to not renew RENT STABILIZED leases if you claim you are going to use the unit for personal use (which could include putting one of your kids in it, turning the building into a single family, expanding your personal apartment in the building etc.). But it does not apply to RENT CONTROLLED units.
But I think you are asking about buying a Coop or Condo, and there is VERY specific language in the law which prevents someone who buys a Coop or condo unit from doing so. So, ironically, being a non-purchasing RC or RS tenant in a non-eviction plan Coop or Condo actually strengthens your rights.
For as long as the rent regulations remain as they are, and assuming the sitting tenant(s) and the legal rent do not exceed certain maximums, you will be obligated to offer renewal leases in perpetuity. A landlord's right to take an apartment for personal use does not apply in the case of the purchase of coop units.
not in perpetuity, but the tenant does have the right to renew until he/she dies. unless there was a relative living in the apartment for 2-3 (i forget exactly) years before his/her death, in which case that relative would have the right to take over the lease.
if you own that apartment, your only hopes of living there are: the tenant dying or evicting the tenant b/c he/she was there illegally, either by the facts that he/she makes too much money or not using the place as the primary residence.
If you are talking about buying a BUILDING, then there is a carve out to not renew RENT STABILIZED leases if you claim you are going to use the unit for personal use (which could include putting one of your kids in it, turning the building into a single family, expanding your personal apartment in the building etc.). But it does not apply to RENT CONTROLLED units.
But I think you are asking about buying a Coop or Condo, and there is VERY specific language in the law which prevents someone who buys a Coop or condo unit from doing so. So, ironically, being a non-purchasing RC or RS tenant in a non-eviction plan Coop or Condo actually strengthens your rights.