Rents May Not Increase
Daily News, May 4, 1999
By MICHAEL FINNEGAN

Landlords need little or no rent hike this year to make ends meet because building maintenance costs are barely rising, a new city report has found.

Expenses for everything from light bulbs to boiler repairs rose last year by .03%, according to the Rent Guidelines Board survey obtained by the Daily News.

Landlords could keep their income steady with no rent hike on one-year leases and a 0% to 1.8% increase on two-year leases, the study found.

The report, to be released today, is good news for tenants because it's a key tool used by the board to set caps on rent hikes for 1 million rent-stabilized apartments.

Florence Fisher of the Queens League of United Tenants said the report showed landlords don't need a rent hike.

"They have no reason to cry," she said.

But Jimmy Silber, vice president of Small Property Owners of New York, said the price index failed to measure true landlord costs. Prices might be steady, he said, but buildings need more maintenance as they age.

"In reality, an owner's expenses could have doubled," he said.

Many owner costs rose in the year that ended April 30, the report found.

Plumbing was up 4%, painting jumped 4.3% and insurance rose 3.5%.

But the increases were largely offset by an 18.4% plunge in fuel costs.

A rebound in fuel prices could drive landlord costs up by 5.3% next year, the study projected.

On May 13, the board will propose rent-hike limits for the year starting Oct. 1. It will hold public hearings before final adoption June 24.

The current caps are 2% for one-year leases and 4% for two years.

Last week, the board reported landlord income had surged 11.4% from 1996 to 1997 after operating and maintenance costs.

Original Publication Date: 05/04/1999