The issue is rent control. In a NJ town, my father bought a 4 unit apartment building in 1989 for 200k. The market value of the building now is at least a million dollars, and the market value of the rent for each of the apartments is about 1300 each. The rents for each of the apartments back in 89 was about 400 dollars, and my father has never registered any of the rent increases ever since he bought the building. The apartment has had many vacancies over the years and my father has put in a lot of money on renovations after each vacancy. Now the tenant from hell and his girlfriend just moved in a few months ago. Theyâve gone to City Hall to ask for a legal rent calculation. So City Hall has now sent a letter stating that after 30 days they will do a legal rent calculation and inform the two parties, and that the landlord has 30 days to provide support for the rent currently charged or waive his right to do so. Has anyone gone through this? I want to know how to justify the rent increasing from 400 to 1300 over 16 years without registering the increases. My father has many friends that are also landlords, and no one bothers to register rent increases. The CPI for one thing is up about 45% since 1989. So apart from that I guess he should just say that he put in a ton of money on renovation over the years, which he has but hasnât kept any records. He will speak to a lawyer soon, but just wondering if anyone has dealt with this. My father has many other apartments and over the past 16 years this is the first tenant to go to City Hall. This guy and his girlfriend make over 175k in combined salary and they want my father to subsidize their rent. This isnât a serious case since their new tenants but Iâve heard horror stories of landlords paying tens of thousands of dollars to long-time tenants due to rent control. And each time the city council tries to relax the rent control laws â that benefit wealthy tenants and big developers more than anyone else â the activists always defeat the reforms.
You should have someone visit them when they are not on the premises (in a parking lot at their places of work, at the mall, etc). No violence of course, just a friendly "chat" to discuss the shortcomings of their "subsidized rent" scam. Problem solved.
crackers, just sell the damn building and donate your profit to charities. remember, it's always easier for a camel to go thr the eye of a needle than for a rich man to get into heaven.
We crackers donate to charity everytime we buy something and we donate half of our salary April 15th of every year to pay for your cheese, your rent, and whatever other form of welfare you consume.
Isn't the issue here that you father actually did not pay proper taxes on his rental income and now he can't prove that rent hikes have been gradual and not unreasonable?
Bushwacked, I think if the pro choice movement bring you in front of congress and the supreme court abortion will not only stay legal but probably be encouraged.
No its not a tax issue, taxes have been paid in full. With rent control, you basically can't charge market price for rent even if the tenant agrees to pay the market price and signs a lease to pay that price. Its not a tax issue. It an issue about housing and government interference with that market.
A while back I remember reading a story about two doctors living in a rent controlled apt. in Cambridge, MA. Both making 6 figures and the landlord couldnt get them out. greedy scum bags.
I am not sure but you may find this helpful: Increases under rent control Rent increases are also limited to the amounts allowed under a local rent control ordinance if the community has adopted rent control and the rental unit is covered by rent control. More than 100 cities and townships in New Jersey have passed rent control ordinances. To find out if your city or township has rent control and if it covers your unit, you should call your city or township hall. If there is rent control where you live, they will put you in touch with the person in charge of rent control cases. You can then ask for information about your situation and for a copy of the cityâs or townâs rent control ordinance. The ordinance will state how much and how often your rent can be raised. There are two types of rent increases allowed by most rent control ordinances. First, the ordinances allow landlords to automatically increase the rent by a certain percentage each year. This is called the annual increase. Second, the ordinances allow landlords to apply to the rent control board for an increase above the annual amount. This is called a hardship increase. http://www.lsnjlaw.org/english/placeilive/rent/tenantsrights.cfm#inccontrol I think if you dad can show using his tax records that his rent increases were within the percentages established by the rent control law he should be fine. If he broke the law he certainly should be fined.