Posted by Mark Smith on January 16, 2000 at 21:13:39:
In Reply to: Actually... posted by MikeW on January 14, 2000 at 14:39:43:
MikeW gave a link to an excellent article on buyouts from New York magazine. Unfortunately, he didn't read it carefully enough. Landlords can legitimately raise the monthly rent by 1/40 of the cost of the improvements to an apartment (building-wide major capital improvements [MCIs] entitle the landlord to a monthly increase of 1/84 of the cost of the improvements, calculated on a per-room basis).
I would suggest that the original poster get a good idea of the market rent for the apartment, and ask for at least 5-years' worth of the difference between the current rent and the market rent, plus moving expenses.
: I would approach it this way: The rule for capital improvement is that they can get a monthly increase of 1/40 of the cost of the improvement. Figure out what the market rent would be for your apartment, and get the present value of that cash flow stream at, say 7% over 40 months. Offer to give him the apartment for that. You'll probably have to negotiate down a bit, but it gives you a good argument.
: : : Hi Folks: First let me thank you for creating this invaluable web site. Having been a tenant activist for years I know it's a grueling task with little reward except that of knowing we fight for fairness and justice...But I, at my late age, am thinking of leaving this great city and returning to my roots...Challenge? Arriving at a reasonable landlord ( hate the word )...building owner buy-out to remove myself from this fifth floor walk-up upper East Side rent contol railroad apartment I've had for the last thirty years...so far the owner says my apartment is not desirable, and that dividing it into studios is now not allowed by the Building Department???? Any ideas out there? ( During the last eighteen years the owner has paid a total of $5000...to the last tenant to move...the rest of the vacating was through aggressive luck and sheriff enforced evictions, followed by apartment division and remodeling...usually without work permits. )... My
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