I want to buy the rent-stabilized unit I'm renting
Started by sml21
over 12 years ago
Posts: 0
Member since: Aug 2013
Discussion about
Ok I know this will sound crazy, but let's just assume that I've done the math, and this idea in fact does make economic sense. I live in a rent-stabilized unit with rents at about half of the market value. I want to make an offer to my landlord for this same unit. As far as I know the rest of the units are rentals. So I'm guessing the unit would be sold as a one-off condo, and he would continue... [more]
Ok I know this will sound crazy, but let's just assume that I've done the math, and this idea in fact does make economic sense.
I live in a rent-stabilized unit with rents at about half of the market value.
I want to make an offer to my landlord for this same unit. As far as I know the rest of the units are rentals. So I'm guessing the unit would be sold as a one-off condo, and he would continue renting out the rest of the building.
Here's the logic:
-- The landlord isn't going to make much from me for the indefinite future. Unless rent-stabilization laws change or I die, he's not making much.
-- Therefore he has an incentive to give me a good price if I were to offer to buy.
-- So I make a below-market offer, and he actually gets something out of the apartment. Win-win.
Reactions please.
While I'm confident on the economic side of things, I'm not sure of the ins-and-outs of how or whether something like this would work or be legal, so any direction you can provide will be helpful.
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Response by pm10031
over 11 years ago
Posts: 8
Member since: Oct 2010
If the landlord controls all other units, its alot of extra work for him to convert into a condo and meet all the laws on condo association to sell just 1 unit. It is also not a good situation for you too. The landlord will decide all matters such as common charges. Can you really control how much work building staff does on his units (after all you are paying for it through the common charges).
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Response by sippelmc
over 11 years ago
Posts: 142
Member since: Sep 2007
I think your assumption is a bit flawed because I'm pretty sure that the whole building would have to convert. You couldn't just get your apt deeded as a "one off" while the rest remains "rental".
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Response by sippelmc
over 11 years ago
Posts: 142
Member since: Sep 2007
I'm also curious to hear how you think on the economic side of things that buying is superior to renting at half-market value in a RR unit.
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Response by REMom
over 11 years ago
Posts: 307
Member since: Apr 2009
The landlord cannot sell off one unit. He would have to convert the entire building to a condominium, including filing an offering plan with the attorney general. The condo plan would only go into effect if 15% or more of the tenants purchase, so it would be a HUGE headache for him and likely unsuccessful if the other tenants are paying seriously below market rents since they would be unlikely to buy their units.
If you want to buy so you can renovate your unit, why don't you seek approval from the landlord to do that and ask for a longer term lease to compensate?
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Response by Consigliere
over 11 years ago
Posts: 390
Member since: Jul 2011
Why would the owner/LL make change this rental building into a condo? Would be a lot of expense to sell one unit.
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Response by Elleinad85
over 11 years ago
Posts: 114
Member since: Jul 2011
Haha - love this post. I wanted to but my rent stabilized apartment which was cheap for a studio but expensive because it was ~200 square feet. It never happened but it would be nice to know it was possible.
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Response by NYCMatt
over 11 years ago
Posts: 7523
Member since: May 2009
Rent-stabilized tenants really have no clue how expensive it really is to "carry" an apartment in NYC. Even if this scenario were possible and the landlord agreed to sell your apartment to you, once the dust settled, you'd have the rude awakening of realizing that your common charges alone would most likely be significantly more than you're currently paying in rent. And we haven't even factored in your mortgage payment.
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Response by Consigliere
over 11 years ago
Posts: 390
Member since: Jul 2011
Keep it DL Matt. Don't upset them, don't let them know about property taxes either.
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Response by Jazzman
over 11 years ago
Posts: 781
Member since: Feb 2009
It would be against the law for the landlord to sell you the unit so the question is mute (REMom is correct).
It would also be against his loan covenants.
Rent stabilization encourages renting - so they make it illegal for you to buy your unit. Once you own your unit you would be less likely to vote for pro rent stabilization candidates - so the pols make it illegal for you to buy your unit.
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Response by fieldschester
over 11 years ago
Posts: 3525
Member since: Jul 2013
>It would be against the law for the landlord to sell you the unit so the question is mute (REMom is correct).
I smell opportunity for Aboutready to sue! Windfall!
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If the landlord controls all other units, its alot of extra work for him to convert into a condo and meet all the laws on condo association to sell just 1 unit. It is also not a good situation for you too. The landlord will decide all matters such as common charges. Can you really control how much work building staff does on his units (after all you are paying for it through the common charges).
I think your assumption is a bit flawed because I'm pretty sure that the whole building would have to convert. You couldn't just get your apt deeded as a "one off" while the rest remains "rental".
I'm also curious to hear how you think on the economic side of things that buying is superior to renting at half-market value in a RR unit.
The landlord cannot sell off one unit. He would have to convert the entire building to a condominium, including filing an offering plan with the attorney general. The condo plan would only go into effect if 15% or more of the tenants purchase, so it would be a HUGE headache for him and likely unsuccessful if the other tenants are paying seriously below market rents since they would be unlikely to buy their units.
If you want to buy so you can renovate your unit, why don't you seek approval from the landlord to do that and ask for a longer term lease to compensate?
Why would the owner/LL make change this rental building into a condo? Would be a lot of expense to sell one unit.
Haha - love this post. I wanted to but my rent stabilized apartment which was cheap for a studio but expensive because it was ~200 square feet. It never happened but it would be nice to know it was possible.
Rent-stabilized tenants really have no clue how expensive it really is to "carry" an apartment in NYC. Even if this scenario were possible and the landlord agreed to sell your apartment to you, once the dust settled, you'd have the rude awakening of realizing that your common charges alone would most likely be significantly more than you're currently paying in rent. And we haven't even factored in your mortgage payment.
Keep it DL Matt. Don't upset them, don't let them know about property taxes either.
It would be against the law for the landlord to sell you the unit so the question is mute (REMom is correct).
It would also be against his loan covenants.
Rent stabilization encourages renting - so they make it illegal for you to buy your unit. Once you own your unit you would be less likely to vote for pro rent stabilization candidates - so the pols make it illegal for you to buy your unit.
>It would be against the law for the landlord to sell you the unit so the question is mute (REMom is correct).
I smell opportunity for Aboutready to sue! Windfall!