Tenants hold out on landlords offering buyouts

Tenant groups call recurring buyout offers intimidation; landlords says they yield better offers

TRD New York /
Jul.July 10, 2014 03:35 PM

Landlords in New York City neighborhoods such as Chinatown, East Harlem and Flatbush have been increasingly offering buyouts to tenants as an alleged tool of illegal harassment. But while many residents may have yielded in the past, now they are often refusing in the face of low offers that fail to cover relocation costs.

The property managers seek to force out tenants in rapidly changing areas at the low end of the real estate market. A city law enacted in 2008 forbade a landlord from locking out a tenant, as well as the interruption of essential services, the New York Times said. Related tenant complaints filed with the Department of Housing Preservation and Development have climbed from 541 in 2012 to 748 last year.

Tenant groups told the Times that recurring buyout offers are often a way of intimidating residents, while landlord group the Rent Stabilization Association said buyouts can lead to negotiations for a better offer.

“If someone is abusive and rude, that’s one thing,” Mitchell Posilkin, general counsel for the Rent Stabilization Association told the Times. “But if someone is being persistent, that’s another.”

Samy Mahfar of Great Neck, N.Y.-based SMA Equities offered tenants buyouts ranging from $40,000 to $70,000 at a Lower East Side property. Resident Steven Yee said he would accept no less than $250,000.

“They’ve got to give you enough to buy a home because, in essence, you’re losing your home,” Yee told the Times. [NYT]Mark Maurer


Related Articles

arrow_forward_ios
Blackstone CEO Steven Schwartzman and Stuyvesant Town (Credit: Getty Images)

After authorities vowed review of Stuy Town deal, Blackstone changes course on vacancies

After authorities vowed review of Stuy Town deal, Blackstone changes course on vacancies
Tete-à-tete with TRD: How landlords are dealing with New York’s new rent laws

Tete-à-tete with TRD: How landlords are dealing with New York’s new rent laws

Tete-à-tete with TRD: How landlords are dealing with New York’s new rent laws
Real Capital Analytics data showed that New York’s multifamily market had a very slow July. (Credit: iStock)

New NYC rent law “beginning to shut down investment”

New NYC rent law “beginning to shut down investment”
Joseph Strasburg (Photo by Jeffersons Siegel)

Landlord leader opens up on rent law

Landlord leader opens up on rent law
Adam Pincus

Inside the legal strategy to topple New York’s rent law

Inside the legal strategy to topple New York’s rent law
A year after the rent law upended the New York City rental market, tenant organizers face an uphill battle to cancel rent and keep the pressure on (iStock)

Scant progress for tenants in wake of rent-law win

Scant progress for tenants in wake of rent-law win
One year ago, the multifamily market was upended, and the financial impact is still being assessed. (iStock)

The rent law, one year later: “No upside, no opportunity”

The rent law, one year later: “No upside, no opportunity”
(iStock)

New Yorkers’ exodus could unravel rent regulation

New Yorkers’ exodus could unravel rent regulation
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...