M2M Tenant in Rent Control building in Union City NJ

M2M Tenant in Rent Control building in Union City NJ

UNION CITY , NJ · Member since 2016 · 59 posts · 3 votes

Good morning BP nation!

I recently acquired a 4 families property in Union City NJ.  According to the town,. There is no rent roll registered yet.  We inherited all tenants . 2 of them are M2M tenants and paying about 250-300/ mo per unit below market rate.

Q1.  Since 4 families or above is rent controlled in Union City NJ,  can I still raise the rent closer to market level.  

Q2. Since their lease expired 5 & 9 years ago(2 separate unit), can I file application with UC township to catch up previous rent increase ( average 2%-3% CPI Consumer Price Index increase)?

Q3.  We handed them Notice to Quit and gave 60 days ample time for them to move out.  One of the tenant insist they have legal right stay there as M2M tenant ( still enjoy paying $300/mo below market rate) because it is legal 4 families and landlord can't ask them move out even owner occupied or landlord family move in as reason to ask them move out.

Please BP nation help us on the situation to deal with the problematic tenant.  Also we are look for Landlord & Tenant attorney whom practice and familiar Hudson County.

Thank you very much in advance!

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Rental Property Investor · Jersey City, NJ · Member since 2011 · 1k+ posts · 876 votes
8y

@Ivan Shao  No, you cannot evict a MtM tenant in NJ for no cause, the state anti eviction statute protects them, all leases renew MtM if you don't issue a longer term lease. and rent raises cannot be retroactive, no matter how long it's been.

Senior Citizens: 62 years and older - PAAD Guidelines; maximum 2% or Consumer Price Index (CPI) whichever is less (Absolutely not a penny more). All Other Tenants: (not senior citizens) maximum 3% or Consumer Price Index (CPI), whichever is less (Not a penny more).

http://www.ucnj.com/web_content/pdf/flyers/Tenant-...

https://www.state.nj.us/dca/divisions/codes/public...

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  • Member since 2016 · 13k+ posts · 12k+ votes
    8y

    Before you do anything sit down and study/learn all your state landlord tenant regulations or get a meeting lined up with a experienced landlord tenant attorney. Do not proceed without assistance and first learning the laws.

    Be very carful dealing with tenants.

  • UNION CITY , NJ · Member since 2016 · 59 posts · 3 votes
    8y
    Thomas S. Thanks Thomas! We are reading the local regulations, tenant law and Rent Control ordinance. Hopefully, we can find a legal way to get them out or level the market rent.
  • Investor · Sugar Land, TX · Member since 2017 · 19 posts · 4 votes
    8y

    Just received notice that even my three family is now subject to rent control.  Would assume you cannot raise up to market level for existing tenants but agree you should check the ordinance/consult lawyer.  One other thing to try is simply call or visit the rent control office to get their view first. 

  • Rental Property Investor · Jersey City, NJ · Member since 2011 · 1k+ posts · 876 votes
    8y

    @Ivan Shao  No, you cannot evict a MtM tenant in NJ for no cause, the state anti eviction statute protects them, all leases renew MtM if you don't issue a longer term lease. and rent raises cannot be retroactive, no matter how long it's been.

    Senior Citizens: 62 years and older - PAAD Guidelines; maximum 2% or Consumer Price Index (CPI) whichever is less (Absolutely not a penny more). All Other Tenants: (not senior citizens) maximum 3% or Consumer Price Index (CPI), whichever is less (Not a penny more).

    http://www.ucnj.com/web_content/pdf/flyers/Tenant-...

    https://www.state.nj.us/dca/divisions/codes/public...

  • NYC · Member since 2017 · 3 posts · 0 votes
    7y

    Good afternoon everyone,

    We also own property in Union City.  We purchased a brand new 4 family unit in Union City, and received a letter from Union City to register for rent control.   We were told new construction is exempt.

    Can anyone here please recommend a knowledge Real Estate Attorney, who has experience in Union City with rent control?

  • Rental Property Investor · Northern NJ · Member since 2016 · 341 posts · 144 votes
    7y

    @Jerry Hasts @Ivan Shao

    Good luck with the UC rent control and building department, to answer your questions, in UC 4+ is rent control and Even if they leave you can only raise the rent a couple of % (if the building is not registered then you have some wiggle room.

  • Rental Property Investor · Member since 2018 · 5 posts · 5 votes
    4y

    Hello Ivan, I see this thread is a bit old now but I am curious how your rent control situation was addressed. I hope it went smoothly and you were able to get solid returns. I am looking to purchase a property in Union City. Out of curiosity were you able to raise rents to market levels after the tenant moved out? I am confused whether you can raise rents once the tenants move out? Any insight from your experience with union city would be greatly appreciated!

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