This is how mom-and-pops calculate rents

Small owners often willing to charge significantly below market for apartments

New York /
Jan.January 05, 2018 05:30 PM

Small property owners often charge significantly below-market rents

The city’s professional landlords, by and large, charge rents on apartments based on what the market will bear – no more, no less. But for mom-and-pop building owners, deciding how much to charge tenants can be more of an art than a science.

“I’m not going to be pushing the top boundaries of what I could get, “Marta Satwin-Ramberg, an architect who owns a three-unit row house in Ridgewood, told the New York Times. “I’d rather rent to friends of friends. I feel like the way I set those rents are what would be bearable for me.”

According to the Rent Stabilization Association, 70 percent of its 25,000 members own one or two buildings with 48 apartments in each, tops. And many of them are willing to charge substantially below market rents, either out of empathy for renters or to keep a favorable tenant.

But that strategy is often confronted with the cold, hard reality of the market.

“We’re not only trying to keep up with inflation, but the real estate taxes have gone up. Our economy is much more fragile than larger landlords’,” said Bibi Caldarero, an artist and broker who bought a Bed-Stuy townhouse with her husband six years ago. The couple rents rent out the garden apartment for $1,800 per month, which is how “I pay my mortgage,” Caldarero said. [NYT] – Rich Bockmann


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”
Council member Ben Kallos and Airbnb CEO Brian Chesky (Getty, iStock)
City Council bill would tighten screws on Airbnb
City Council bill would tighten screws on Airbnb
Blackstone CEO Stephen Schwarzman (Getty, iStock)
Blackstone buys San Diego apartment complexes in $1B deal
Blackstone buys San Diego apartment complexes in $1B deal
Gov. Andrew Cuomo (Getty, iStock)
New York’s rent relief site goes live — without applications
New York’s rent relief site goes live — without applications
City Council Majority Leader Laurie Cumbo and 840 Atlantic Avenue (Getty, Google Maps)
Atlantic Avenue project gets haircut — and is rejected anyway
Atlantic Avenue project gets haircut — and is rejected anyway
Opendoor CEO Eric Wu (iStock)
Opendoor revenue bounces back in Q1
Opendoor revenue bounces back in Q1
arrow_forward_ios

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

Loading...