Hey guys I live in New York City and I am reviewing the regulations for rent. If i am planning on house hacking, would i be following the rent stabilized laws, rent control laws, unregulated laws or am i just way off?
Hey @Ronny Tiburcio ,
If you are house-hacking 4 units or less, my understanding is that you are not bound by any rent regulation/stabilization laws.
I'd be happy to connect you to an RE Atty if you need additional info.
@Abel Curiel Thanks. You can send me the info when ever you can.
I house hack in Brooklyn in a 3 unit multi family. Abel is correct: rent control applies to 5 units and larger.
Hi Ronny, I'm both a long term buy and hold Investor in Brooklyn and a Real Estate Broker.
I can tell you there will be a rare few rent stabilized under 6 unit buildings.
Some buildings can volunteer to become rent stabilized in exchange for a Tax Break. Generally, that would be new construction.
It became attractive for some developers to apply for the Tax Break and make the buildings Rent Stabilized because it was easier to sell the building to unknowing Investors who did not necessarily understand the Tax Abatement program.
So be careful and read this website:
How does the number of units affect a building's regulation status?
Rent controlled units can generally be found in buildings with three or more apartments. In rare instances, a two-family home may be rent controlled if it was occupied by the same tenant since 1953.
Rent stabilization generally applies only to buildings with six or more units. Although smaller buildings may be subject to stabilization if stabilization is imposed due to a tax abatement (See our Tax Abatement/Exemption FAQ.
Also, the remaining tenants in a building which is reduced from six to fewer than six units may continue to be rent stabilized.
For more information on the differences between rent stabilization and rent control see DHCR Fact Sheet #1: Rent Stabilization and Rent Control Other DHCR fact sheets explain in more detail the workings of rent control and rent stabilization.
@Ronny Tiburcio : Do your due diligence on the property you are buying. Examine the Certificate of Occupancy, review the building's SRO status on DOB, and analyze the rent roll for clues such as preferred rents. Good luck!
Thanks to all for your comments. I am definitely going to due my due diligence on any property i plan to purchase but for what ever reason, on the city website they didn't give me a straight forward answer. @Randi Plevy
Thanks for the link @Llewelyn A.