Info/experiences buying out renters in gentrifying area?

5 Replies

The incredibly noisy 6 member family on the top floor of my 4 family is making the quality of life horrible for me just renovating the unit below, It's just bedlam from 3:30 to 10 every weeknight, and all weekend. I can't imagine even if I can find a decent renter, they'll ever stay more than a year unless they're deaf. This family was there when I bought it in July 2012. I'm thinking if I can pay them a lump sum to leave I'll be ahead of the game if I don't have to have a couple of months vacancy on a more expensive renovated unit every 12 months.

This area is gentrifying, think Bushwick Brooklyn. The tenant has been paying $1000 since spring 2010, so I was going to give them a $100 raise this spring, the rent is not regulated. This is still pretty undermarket for a 900 sq ft 6 room place but my wife is reluctant to even let me raise that much.

If they weren't so disruptive I'd be fine with the rent, but I'm thinking maybe $3-4k might get them to leave. I recall on the Upper West Side in the mid 90's the typical going rate was $5-10k to clear rent stabilized tenants out for conversions. Any info from the Metro NYC crowd on tenant buyouts?

I'm confused. Is it rent controlled or not?

If its not and you want the tenants to leave to the extent that you're going to give a lump sum of a couple thousand to move, then why not hike the rent on them?

This way, the rent's too high for them to stay so that they have to voluntarily leave without you having to bribe them with any money to move out.

Can you not just give them notice that you will not be renewing their lease? That seems the easiest way to accomplish the task. How many more months does their current lease run?

Ah yes, I guess I forgot not everybody knows the technicalities of the NJ "anti-eviction statute"! The rent is not regulated but one can not raise the rent by what a judge might consider "unconscionable". What's that? Whatever the judge says it is. Hearsay is 5-10% is pretty safe, 20+% might get you loss in court, depending on judge and circumstances. They also have a right to automatic lease renewal in rental properties unoccupied by owner and owner occupied over 3 units. But I don't want a war, an expensive legal one or one of property damage, I just want them out. So 10% plus a buyout offer seemed gentle enough.

Just a quick question.

Whats the average % for rent increase in ny.

oh, just wait till the lease exp or if you have no lease ask them to move due to mamily matters. (your cousins needs the apt)

Start procidings in tenant court but the law is on the tenents side in Ny. especially in winter.

Originally posted by @Arthur D. :
Just a quick question.

Whats the average % for rent increase in ny.

oh, just wait till the lease exp or if you have no lease ask them to move due to mamily matters. (your cousins needs the apt)

Start procidings in tenant court but the law is on the tenents side in Ny. especially in winter.

Jersey City is in NJ. The NYC clause that allows you to evict for personal use does not exist here anyway. But overall the court is not nearly as tenant friendly as NY. The only eviction I've had to do, for non-payment, was easy. The court mediator asked if he had the rent, when he said no it was over. No BS about poor maintenance etc was entertained.