Rent control deleverage for 3-family house in Union City, NJ

[Alan Liu]

I'm submitting an offer to buy a 3-family in Union City, NJ. I'm aware that the rent control ordinance was revised to include 3-family in 2018, so this property fits the category. The units are all currently rented out for $1000-$1400, but the owner did not register the rent (Considering that building just became rent control 2 years go, this may be possible). The seller's agent told me that I can have the city do a legal rent calculation but that would take 2-3 weeks and I really don't know what to expect from the legal rent calc. What is the legal rent calc based on and is there a possibility that the legal rent calc comes out below what the current owner is collecting? Since I'm also planning to move in one of the units, what's the process to deleverage the rent control? Thank you so much. 

[Mark F.]

My best advice is reading through the cities website on the information. That is your best way to be protected. I did some research on UC rent control couple years ago when I offered on a four family. Here's the website. I cant remember off the top of my head on owner occupied exemptions. 

https://ecode360.com/15396991