Is this what the Alberta government wants: deteriorating rental buildings like many in parts of
rent controlled Winnipeg and Vancouver?
The landlords' "logic" runs something like this: If a city is
rent controlled, landlords won't invest in their properties because there's not much profit to be made.
An advertisement in a recent issue of New York magazine showed one strategy for landing a
rent controlled apartment: huge finder's fees.
The property contains approximately 74 units--59 of which are rent stabilized and 14 that are
rent controlled. The transaction occurred at a capitalization rate of 2.59% and a gross rent multiple of 20.67.
Rent controlled households had a median income of $20,000 while rent stabilized households were $32,000.
Ten times a $400
rent controlled rent is a heck of a lot less than ten times a $4000 decontrolled rent, and those rent control vacancies were very rewarding.
Sure, owners do file with DHCR if the previous tenant was
rent controlled, and are required to serve the new tenant with an RR1 to establish the first legal rent.
The RTC had attempted to use its powers granted by Congress to repudiate leases and to evict non-purchasing tenants who had rent stabilized and
rent controlled leases in the non-eviction plan condominium.
Owners should determine if their tenants are
rent controlled, old stabilization law or ETPA now, so if and when there is a change in the ETPA, or the law sunsets and is not renewed in some fashion over the following few weeks, they will know what is legally acceptable for each tenant.
An Appellate Division has unanimously agreed with an owner's group that the Division of Housing and Community Renewal (DHCR) has wrongly calculated rent increases for
rent controlled tenants.
It's almost impossible to get rent stabilized tenants to move, they say, even with recent changes to policies, and as for
rent controlled tenants, well, more than one Midtown skyscraper is cantilevered over a crusty old tenement.
In fact, using incomes from 1995, the HVS found 339 tenants paying $500 to $999 a month who make more than $250,000 and live in
rent controlled units.