All Forum Posts by: Ray Reed

Just remember that the city is rent controlled. There is a limit on how much you can increase and the city dictates that.  It has been consistently under 2.5 the last year and half.

like @Brian Liscio stated, you pretty much advertise your unit wherever you want and the prospects that have section 8 will let you know they have it. they may ask you if you accept section 8.  legally you are not supposed to say 'no'.  The process takes about a  month unless you fail the inspection.  

union county sect 8 pays around $1850 for 3 bedrooms 1 bath.

@Menachem Bloom it depends on if the building is registered with rent control or not.  if it is registered, the units already have a rent amount on file and you cannot jack it up with a new tenant unless renovations are made. usually you wont have a problem with a brand new tenant especially if you are at market rent.  how many bedrooms are the units?

@Menachem Bloom Elizabeth is rent controlled so you cannot just raise the rents to $1500.

@Jonathan Greene i know Montclair allows boarder units but Newark does not.  I had specifically asked my attorney about this a couple of months ago and he stated evictions are hard to perform. he stated that in most of NJ these units are not legal especially in Newark.  Below is the write up he sent me:

The proposed tenancy is likely illegal for several reasons, including violations of N.J.S.A.
55:13B et seq. (Rooming and Boarding House Act of 1979), violations of the Newark Municipal
Code, and violations of the Uniform Fire Code.
At essence, the three rooms would not meet the standards of a dwelling unit under the
Newark Municipal Code, while the property is not a valid rooming house under the Rooming and
Boarding House Act of 1979.
I. Newark Municipal Code
Section 18:3-1.15 of the Newark Municipal Code (the “Ordinance”) requires that each
habitable room must be individually heated, and that all sinks and showers must have hot and
cold water.
Section 18:3-1.35 requires that all dwelling units have separate, self-contained cooking
facilities, while section 18:3-1.41 requires a separate bathroom for the dwelling unit.
II. Rooming and Boarding House Act of 1979
The propose arrangement falls under the definition of a rooming house set forth in
Section 3 of N.J.S.A. 55:13 (the “Act”). Generally, a rooming house is “any building [...] which
contains two or more units of dwelling space arranged or intended for single room occupancy,
exclusive of any unit occupied by an owner or operator.” The Act further defines “a unit of
dwelling Space” as “any room, rooms, suite or portion thereof, whether unfurnished or furnished,
which is occupied or intended, arranged or designed to be occupied for sleeping or dwelling
purposes by one or more persons.”
In effect, a rooming house is a building which contains two or more rooms that are
intended for sleeping or dwelling, and that are not arranged for independent living. Courts have
noted that “[a]although the presence of security locks is often a significant factor in a court’s
determination that a rooming house exists, rooming houses have been found to exist where
rooms do not have locks or have locks to which tenants do not have keys [...] In the final
analysis, it is the fact that each tenant individually rents a room that is dispositive.” . Fabics v.
Dep't of Cmty. Affairs , No. A-4264-07T3 (App. Div. May 11, 2009)
Rooming houses are subject to regulation by the Department of Community Affairs
(“DCA”), and specifically regulated under N.J.A.C. 5-27 et seq.
Section 7 of the Act provides that no person shall own or operate a rooming house
without first obtaining a license from the Department of Community Affairs, and the operation of
a rooming house without a license is punishable by a penalty of up to $5,000 per building. Prior
to being granted a license, an inspection must be performed by the DCA to ensure that the
building and living spaces are compliant with the Uniform Fire Code and Uniform Construction
Code (i.e. is fire safe, and has no plumbing or electrical problems, is clean, and has sufficient
access to light and air).​Section 4.2 of the DCA regulations lists several amenities that a rooming house must
provide. These include 1) a kitchen sink with hot and cold water, and 2) a toilet and shower that
is accessible without passing through another occupant’s living space.

@Jonathan Greene @Justin Sanchez

If you are saying 2 + 1 is a legal 2 family with a 'bonus' unit',  you cannot use it as a 3 family even if you live in one of the units.  Newark is very strict about this.  there are also insurance consequences.  The insurance company will have it as a legal 2 family. God forbid you have a fire.  The insurance company will see 3 claims on a two family.  You can be on the hook if they choose not to pay.

@Mark F.  This is a 3 family house where the owner lives in one of the units, so he can terminate the lease at the end of the term.  Not saying he should do that but he can. 

i just went thru the same thing but it was without a lender.  contact the zoning department to see what the house is zoned for and also the tax assessor/collector. 

@Malik Gray  it is closer to $3K a year. if i didnt separate the heat it would be $6K.  with me separating the heat, the gap will be $250 monthly  ($1050 - $800).