The Real Deal New York

Moving companies reap benefits of recession

January 09, 2012 11:30AM

Companies that clear out people’s homes after evictions are doing a roaring trade in the wake of the recession, “making money out of people’s misery,” David Robinson, an attorney for Legal Services NYC, which helps low-income New Yorkers through the eviction process, told the Associated Press.

Eli Navon, owner of Eagle Van Lines, a New Jersey-based company that executes eviction moves in New York, said his landlord clients pay around $2,500 to clear out a two-bedroom apartment and then by law must pay for a storage unit to hold their goods for 30 days.

For the movers, “it’s a lucrative business, absolutely,” he said.

AAA Moving, a New York City-based company makes 20 percent of its annual revenue through Brooklyn evictions, it said, more than $120,000 a year. It charges $35 an hour for each employee, plus packing materials and storage.

Ethnic urban neighborhoods are hardest hit by these costs, with twice as many renters evicted in these neighborhoods as in the general population, the AP said. [AP via WSJ]