Landlords of NYC rent-regulated buildings struggle to sustain business

While Governor Andrew Cuomo lobbies for rent-regulation, New York City landlords claim that they cannot sustain their businesses without rent increases for stabilized apartments, according to Crain’s. Operating costs for buildings that are entirely or partially rent-regulated– almost half the residential buildings in the city — jumped 6.1 percent in the year ending March 31, according to New York City Rent Guidelines Board’s annual price index, 2.7 percent more of an increase than in the previous year.

“A lot of owners can’t make their expenses,” said Roberta Bernstein, president of non-profit organization Small Property Owners of New York. “We keep on getting strangled.”

Owners say they are facing a dramatic rise in taxes in addition to hikes in the cost of fuel and utilities. Fuel has risen 23 percent in the last year, according to the index, real estate taxes rose 3.5 percent and property taxes ate from 7 to 30 percent of landlords’ income.

Rent increases for rent-stabilized or rent-controlled buildings are limited to 2.25 percent per year by law. Next month, the Rent Guidelines Board will vote on increase of 3 to 5.75 percent per year. [Crain’s]