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How to address possible LL games when you live in same bldg?

NYC Rent Regulation: Rent Control/Rent Stabilized, DHCR Practice/Procedures

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How to address possible LL games when you live in same bldg?

Postby yippee1999 » Tue Feb 09, 2016 1:22 am

I am a tenant in an RS apartment in a small bldg where the LL lives. I signed a vacancy lease 1.5 years ago for 18 months (not sure why LL offered '18 months' but there you have it). Working with a broker to find an apt., and after seeing this one, the broker told me that while the rent was $2000, that LL was willing to 'negotiate'. I took that as clear sign they knew they were pushing it on desired rent. Needing an apt however, I didn't want to lowball too much and offered $1925, which was accepted. During that time no mention was made to me that it was an RS apartment (though I now know that to be case).

As we know, RS rules can be very confusing, and I am still learning. Looking back at vacancy lease I signed, it's entitled 'Fixed Term Residential Lease'. Term of lease 18 months. Said 'tenant will pay monthly rent of $1925 known as preferential rent for Term of LEASE. Actual legal rent is $2100 (and then that amount had arrow pointing to another hand-written figure saying $2050). (I'm sure at time I of lease signing I must have asked about that and they likely said something like 'oh don't worry...that's just legalities...but your monthly rent will be $1925 just like it says here...and just like you will be paying us for first/last/security'. So what was I going to do at that point?...I just signed it. I was not familiar then with the term Preferential Rent, and that it is usually used in conjunction with RS apartments...)

There was also a clause that said 'tenant acknowledges receipt of tenant rules and regs which are labelled Attachment A.... I assume I was told to 'X' that box but again, there was no such Attachment included. (In retrospect, I have to wonder if this may have been the Rider I now know that I was supposed to receive....that all RS leases must include a Rider explaining how rent amounts were determined...)

So...never told apt was RS. Never got a Rider with Vacancy Lease. Also odd/concerning in retrospect, that Legal Rent amount initially said $2100 in Vacancy Lease, and then was changed with a pen notation to say $2050 instead.

Cut to present day...18 months later. I get a Renewal Lease with indication that my Preferential Rent will be increased by $65 to $1990/monthly rent. Legal Rent still indicated as being $2050. Term of lease was for One Year. I decided this time to do some investigating with DHCR, before signing renewal lease.

If I have it correct, I was again supposed to get a Rider. I did not. In addition I understand that it is the tenant's choice and not the LL's, whether they want a one or two year lease. I believe that I was supposed to receive a lease with two lines indicating something along lines of 'preferential rent for a 1-year lease will be XXX' and 'preferential rent for a 2-year lease will be XXX'. (However as mentioned, my renewal lease was given to me as a one-year renewal.) I learned 421a tax abatement on this bldg ends in 8 years (by which time I may no longer be here anyway).

I got apartment rent history and saw that as of 2011, tenant was paying the Legal Rent. Starting the next year with their Renewal Lease, Legal Rent increased and tenant continued to pay same $$ amount as prior year (which is now considered a 'preferential rent' for them). They remained in apt another two years, and I can see each renewal lease was for term of One Year only, and that 'Preferential rent' increased both years. (So seems to me the LL's M.O. to only offer one-year leases and that for whatever reason, tenants are either unaware they can ask for two-year, or maybe afraid to ask, or maybe with two-year LL jacks up Preferential Rent even higher...)

I then see that once that tenant moved out, LL raised Legal Rent about 19% for my 18-month lease (which appears to be the allowable % increase for a Vacancy Lease).

So... think LL is very calculating? Maybe simply not 100% by the book but doesn't necessarily intend to be misleading? Maybe offering 1 vs 2-year lease doesn't necessarily mean she's playing games or trying to pull the wool over tenants' eyes?

Those are the details. So what do I ultimately hope to accomplish here??? Well...I like the apt overall...the bldg...the LL seems nice overall...I like the area...would like to remain for foreseeable future.

Can I handle rent increase? Easily. Could I handle this same level of increase each year for next few years? Well...may start to impact other spending at some point...depends on IF I get raises at work (which some years is just 2%!) More than anything, what bothers me is the 'feeling' that LL may be purposefully playing games...not 100% truthful by way of misholding info or by realizing that tenants are often understandably very confused and not aware of their rights.

I realize I have to live in the same bldg as this person and interact with them. Would obviously like to feel 'good' about living here. Based on what I've said....what is your gut? I've thought about just trying to have a 'talk' with the LL...not accuse her of anything...but maybe say something along lines of that I'm just curious if she normally raises the rent each year...that that's not something I'm accustomed to (which is actually true: the last two rental apts I lived in for 5 and 7 years each...the rents never increased. Granted one apt. was very 'unusual' but the other apt. was extremely nice...maybe not in the type of neighborhood that everyone was clamoring to live in..so LL perhaps knew he couldn't get much more rent even if he wanted to....)

I truly would feel fine...much better...if I knew LL was raising rents every now and then because she truly had to...that she felt badly but it was just necessary. That I could handle much better than an LL that I think is playing games, who's very 'savvy'...does the whole tax abatement and XX Realty LLC thing...knows all the ins and outs...and is also now trying to capitalize on fact that the area where the bldg is located is suddenly a 'hot' area where people want to live....

Do you see anything patently misleading...bordering on 'illegal' ...with what I've outlined above regarding my LL...or do you think that everything she's done, or any 'motives' for doing so, are 'grey enough' that..considering I can handle the current increase and all things considered I like the place, I should just sign the renewal lease and not worry so much about trying to get to the bottom of all these details?

What about my wanting a 2 vs 1-year lease? Should I ask if I can get one (though likely the LL will try to use double-talk and vagueness ''oh...I only give one year leases'). Do I 'push her' for a 2 year lease and say that I know it's actually my right as RS tenant to demand 2 year lease? And then could she turn around and say 'ok well for 2 year lease I'll need to change the terms...preferential rent will now go up $125 instead...' Could she do that, and after already handing me a 1-year lease saying preferential rent increasing by $65? I'm guessing that again, all things told, I shouldn't 'push' for anything....maybe just 'ask' if I could get a 2-year lease, and once she likely says 'no', that's that I guess....

Thank you for reading, and for any input!!
yippee1999
 
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Re: How to address possible LL games when you live in same b

Postby TenantNet » Tue Feb 09, 2016 2:38 am

Could you shorten your post? Just the essentials. I can't stay up all night to read this :)
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Re: How to address possible LL games when you live in same b

Postby yippee1999 » Tue Feb 09, 2016 12:50 pm

lol! Understood! I can tend to be wordy...

OK, I live in smalll apt bldg where LL also lives. We have nice rel and she likes to think of this as 'family bldg' where all get along...everything is nice.

She is very savvy but yet some things not being done 100% by the book. My fear/instinct is that this is intentional which leaves me with bad feeling, which I don't want in my own apartment/home. But maybe her behaviors aren't intentional 'malicious' or very illegal.

I just got my first renewal lease with increase on pref rent. 1) I've never been told apt was RS. Figured it out on my own a while back when I saw term 'preferential rent' (never saw that term before) and investigated with DRHC. 2) I feel use of 'pref rent' term is 'scam' to make tenant feel they are getting a deal even when they may not be. So gives me bad feeling. 3) I saw my apt's rent history where pref rents automatically increased each year. I saw Legal rent increased 19% for my first (vacancy) lease (which I believe was allowable but still...quite a jump. Pref rent I then began paying was $200 above prior tenant's pref rent). 4) All leases have been for 1-year only even in instances where same tenant remained. (My sense is this is all LL offers and that prior tenants either not aware or intimidated to ask for 2-yr lease. 5) Neither my first (vacancy) lease nor current renewal lease contained riders, that I understand they should, regarding RS and how legal rent amounts determined. 6) Current renewal lease stated as one-year, though DHRC told me it should have two lines for one-year option $ and two-year option $. 6) In original vacancy lease the Legal rent was indicated as being even higher, but then before I signed lease someone had written in pen a lower dollar amount. (was that a simple mistake or more 'games' on the LL's part?). I can tell you that this lower dollar amount for the Legal Rent was clearly indicated as the same amount, in my current renewal lease, so that's good.

Overall I like my apt, the building and the LL but she's clearly savvy and I suspect purposefully ambiguous...doesn't give whole story...prefers tenants to be in-the-dark.. if you question things she'll use double-speak and try to confuse/intimidate you (as she did the first time when I asked if I could get two-year lease instead of one. I didn't realize at time it was a Rule all RS tenants be given that option...) Yes I can pay increased rent no problem, though I do think bit high all things considered. But fear is that this will be annual pattern. Rent increases 'just because'.

Just trying to get a sense of how 'sleazy' she may be, based on what I've written here. Would like to just have real 'conversation' with her...that I don't mind increases now and then ...but that automatic/annual ones give me a 'bad feeling' and in fact my prior two apts (5 and 7 yrs each) never had rents raised. Just let her know where I'm coming from... I also want to ask about 2-year lease again (now that I know it's my right) but I fear that will 'push' her and that she won't want to give it which in turn will create more 'animosity' towards her.. So maybe I don't bother...
yippee1999
 
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Re: How to address possible LL games when you live in same b

Postby TenantNet » Tue Feb 09, 2016 6:52 pm

Assuming this is RS as you posted in RS forum. Are there 6+ units?
Does your original lease state it's RS? Was there a DHCR informational rider attached? Have you received DHCR registrations every year?

On the renewal, is it on the DHCR RTP-8 form? Yes, a "preferential rent" is implicit that it's RS. You have a right to choose 1 or 2 year renewals. And if not on the RTP-8 form, in our view it's not legal and the rent should not increase until you get a proper order. See the instructions to the RTP-8 here.

19% for a vacancy lease is not unusual. It would be unusual if it was less than that. Any IAIs would be on top of that.

As for the amounts on the renewal form, we can't opine if they are correct or not without really seeing the vacancy and renewal leases.

Get over your "bad feelings' and learn the law.
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Re: How to address possible LL games when you live in same b

Postby yippee1999 » Sat Feb 20, 2016 3:43 pm

Thanks for reply. I have been trying to learn the law but the language is very overwhelming and confusing for a layperson like myself. Nonetheless, to answer your questions.

Bldg has 9 apartments but 2 are for the owner and his family so not sure if that makes a difference.

Original lease did not say apt was RS nor was there a rider attached to vacancy or recent renewal lease.

However info I requested and received from DHCR clearly indicates it's RS and that LL's tax abatement will end in 2022.

So it sounds like what LL is doing is not 'legal'. At this point however I've decided to just assume it's not intentionally malicious and just accept things as they are. It's never fun trying to find another new apartment etc. and no one ever wants to ruffle the feathers of an LL who lives in the same bldg.
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Re: How to address possible LL games when you live in same b

Postby TenantNet » Sun Mar 13, 2016 8:50 pm

How can you give up the fight and have a username with "yippee" in it? That disrespects the soul of Abby.
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