Rent control in Newark

7 Replies

Hi everyone I would like know ok someone familiar with the rent control Rules in Newark NJ Essex County For example is a 3 Family under rent control? What if they move ? and what if buy It vacant?

Yes, 3 family in Newark are subject to rent control. The Newark Code is online, you can search for rent control there and the laws will come up. http://clerkshq.com/default.ashx?clientsite=Newark-nj They also have a really responsive rent control department in Newark. It won't let me post the phone number or email address here, but this site has everything. https://www.newarknj.gov/departments/rentcontrol Good luck!

Hi @Michael Smith !  Full disclosure, reach out to the rent control office to verify the information I'm about to share as they would be the best to provide the most up to date information about this topic.  

We own and manage 3 family properties in Newark (Essex, Bergen, Hudson Counties) for clients and to give you the quick answer, yes, 3 family properties are subject to rent control.
If a tenant moves and they have previously recorded rents, you will be subject to renting the property at the amounts that have been recorded previously, a vacant apartment does not reset the rent controlled amounts.  There are other ins and outs of rent control, if you would like to get more info definitely call the rent control office, they are pretty responsive and should be able to provide you all the info you need. 

Before you buy a vacant property, if you are curious about knowing if someone reported rents in the past, request an OPRA request and that will be able to show you if the city has records of previous submissions of rent control amounts. This is very important because if they do, you will have to abide by those amounts.

Let me know if you have any other questions.

Best of luck!

Moises

Thanks so much @Moises Mari From What I understand From you is, that every house in Newark is subject to rent control if they recorded the rent’s with the county, and even if I buy it vacant or I am doing cash for keys with the existing tenant I cannot ask for the market rent with the new tenants? The Reason I am asking is, I came across a guy wanna sell his 3 family in Newark, the house Is In overall good condition, although the price is below market price The rent roll is very low that I wouldn’t cash flow much

And this is why houses like that are being condo-ed all over the area.  Rent control reduces rental inventory.  Check out my post about an interesting recent case of a successful hardship appeal.

Existing Owner Occupied units from 1-4 family are exempt from rent control. You also may file for an exemption is the units were substantially renovated before being occupied. As suggested I still would check with the Rent Control Department. Jacquea Lee is the supervisor there. They are pretty good at getting back to you but sometimes with City Hall it really is best you walk in. You can check here for the reference.... https://drive.google.com/file/d/1XNO3QFBBtt85meKqFfvzGSnIZGklqKlD/view