Violations of Loft Law Put Landlords In Jeopardy Throughout NYC

A new article by Real Estate Weekly highlights the jeopardy landlords are placed in by violating the Loft Laws.  As many as 339 buildings throughout the City are sanctioned as a result of the law and 264 buildings lack a Certificate of Occupancy meaning that tenants can withhold rent until the buildings are brought up to code.  This has led to many landlords not receiving rent for years resulting in bankruptcies, pre-emptive sales and buyouts by tenants.  It has also led to deteriorating conditions in the buildings due to revenue not being produced to fix repairs.

According to the article, the states interim multiple dwelling (IMD), has given tenants of illegally-converted lofts a tremendous amount of leverage over the process of getting the units compliant with the law.  Property owners have complained about renters not assisting with allowing access to the units for the necessary fixes.  Also tenants must agree to the improvements that must be made by the landlords.  Landlords have nine months to complete the first phase of compliance, which includes compiling reports about the present state of the building and how it will look once improvements are made.  Jason Frosch, a Loft Law specialist at the law firm Borah Goldstein says that a building owner on average will have a year to obtain a certificate of occupancy before tenants can go on perpetual rent strike. However, since most of them former factories and warehouses that’s nearly impossible to do. He states that “the requirements of the Loft Law are costly and time-consuming.  The law doesn’t acknowledge that reality and it requires owners to front those costs while allowing the tenants to deprive them of a revenue stream that is necessary to pay those costs by withholding rent. And it creates a perverse incentive for certain tenants to delay the process and obtain a windfall for doing so."

The IMD drafted in the 1980's was initially aimed warehouses in Soho, Chelsea and Tribeca.  The new updates to the IMD from 2010 also targets warehouses in what is deemed industrial sites located in Williamsburg, Dumbo, Bushwick, Bed-Stuy, Fort Greene, Park Slope and Long Island City.
Senator Martin Malavé Dilan, a Democrat from northern Brooklyn has introduced a bill allowing owners more time to make improvements before tenants could withhold rent. That bill was not voted for by the legislature and owners are hoping that they will open a special session to vote on it.  It is uncertain whether they would have the votes to have it pass at this time.

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/violations-of-loft-law-put-landlords-in-jeopardy-throughout-nyc/

Landlord Responsibilities and Expectations for Lawn Maintenance

The summer months are ahead of us and now is the time that nature is really taking a toll on our lawns.  Most property management companies and property owners take the duty of maintaining their lawns seriously.  Having a presentable lawn brings substantial value to your property.  Some landlords also shift the responsibility to their tenants but most of the time it doesn't benefit the parties involved.  Since this is mostly the case, here is our suggestions in maintaining your lawns during the summer month.

Why tenants should not be responsible for lawn care
Sometimes owners and property management companies decide that it would be advantageous to have their tenants upkeep the lawns of their properties.   The customary agreement would be the landlord would reduce the amount of the rent by having the tenant take care of the lawn.  The reason some landlords decide to this is the time involved.  If you are a landlord with multiple properties it is time consuming to schedule with your tenant and having the work done.  Whether it be performed by yourself or using a lawn maintenance company there is a benefit, in theory in shifting the resources towards the tenant.
The problem in this situation is tenants sometimes neglect their responsibilities or do not perform the job that is expected.  Landlords should always have in writing what the expectations of lawn maintenance is for the tenants.  This is normally done as an addendum to the lease.  Whether it be just mowing the grass or the additional effort of removing tree limbs, weeds and using pesticides all of these issues should be addressed in an agreement.  The failure to do so will result in you having to do the work yourself or hiring someone, costing you additional monies.  Plus the added confrontation with the tenant is not beneficial to anyone involved.

Landlords responsible for lawn care
Without an agreement otherwise, the landlord or property management company is normally responsible for the maintenance of the property's lawn.  Although it may increase the cost to the tenant, the benefits to the owner far outweigh the added rent.

By taking on the responsibility of the lawn care, the landlord is in total control of the look and expectations surrounding the exterior.  In most instances, landlords in this situation find it advantageous to hire a professional lawn care provider.  By doing so, you now have the advice of professionals who understand what is needed as having their expertise and tools to handle any issue that might arise. The added benefit of fertilizing and reseeding when necessary is another great benefit of using a professional outfit.  Partnering with a company will certainly save a landlord time and in some instances money.  This is especially true if you have multiple real estate investments in New York City.

What is the right fit for you?
At the end of the day it does come to how comfortable you are with your tenants and the level of service you will receive.  In our experience, it advantageous to use experienced professionals to do the job.  No one wants to inspect their property and see dead dried out grass or overgrown weeds.   If you decide not to, remember always have it in writing what you are expecting!

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/landlord-responsibilities-and-expectations-for-lawn-maintenance/

NYC Landlords Win Major Case in State's Highest Court Over Rent-Regulation

In a historic decision that could have affected an estimated 150,000 apartments throughout the City, the Court of Appeals has held landlords did not have to re-regulate apartments in rent-stabilized buildings that were properly deregulated once the rent-stabilized renter moves out.

The initial case was brought two years ago in Altman v. 285 West Fourth LLC.  The case involves a lease that was $1829.49 at the time of the vacating of the rent-stabilized tenant.  The subtenant (Robert Altman) then signed a new lease with the landlord (S.W. Management Acquisitions) that exceeded the prior rent and included a 20 percent vacancy increase ($2,484 per month) which is allowed under the  Rent Regulation Reform Act of 1997.  The legal rent thereafter exceeded the threshold of $2,000 a month rent in order for the rental to be deregulated.  The 2015 case indicated that the 20 percent vacancy increase could not be included in meeting the threshold which Altman was awarded $165,363 in overcharged rent.  The court stated that the rent had to exceed the threshold when the tenant was living there.  The Court of Appeals overturned this decision and now indicates that apartment rents can be increased and deregulated based on legal rents (including the 20% vacancy increase) on when the tenants move out.  The legal threshold for deregulation currently is $2,733.

According to The Commerical Observer the affirmation of the lower court's decision "would have given as many as 150,000 renters a precedent to sue their landlords for illegally deregulating their apartments and potentially allow them to win hundreds of thousands in rent overcharge judgements."

Real Estate Board of New York (REBNY), which filed an affirmation in support of the landlords is in support of the decision.   REBNY president John Banks stated “The New York State Court of Appeals, the state’s highest court, has reaffirmed the long-standing legal practice and widely held understanding of the application of the Rent Stabilization Law’s vacancy decontrol provisions.  This means that the owners of thousands of rent-stabilized apartments which have been deregulated over the last two decades can rest assured that the rules were followed and these units can remain deregulated.”

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/nyc-landlords-win-major-case-in-states-highest-court-over-rent-regulation/

Advantages Of Being a Pet-Friendly Landlord

For many landlords and property management companies in New York City, the decision in allowing pets is a tough one.  Some of the decisions for not allowing pets involve noise complaints (dogs barking) or damage to the property (damage to walls, floors, carpeting etc.).  As a result of not allowing pets, it is being reported by a nationwide study that landlords are decreasing their chances of increasing their overall profitability of their investment. The study which was conducted by Firepaw, a not for profit organization that promotes animal welfare through research found that owners of properties that are pet friendly towards their renters will see an increase in revenue overall.  The study found that pet owners are reluctant to give away their pets and will pay a premium in order to keep them.  Also, renters are deciding to keep their pets more than ever as the amount of pet owning renters has increased to 75% from a low of 43% in 2012.

The study indicated that there is a rental premium between housing accepting animals and those that do not between 20-30%.  Another aspect was turnover was less with tenants will pets.  The study showed that tenants significantly longer in pet-friendly unit.  The report indicated according to the survey that tenants would stay an average of 46 months in pet-friendly environment in comparison to 18 months in prohibited units.  Other factors that are considered when deciding on having a pet-friendly building would be having more applications for units, lower vacancy rates and less amount of money for the marketing of units due to increased demand.

The Firepaw study indicates that the damage resulting from pet is actually a lot less than perceived.  The study showed indicates that 85% of landlords permitting pets reported having some amount of pet-related damage at some time.  However. the damage was normally covered by the pet deposit.  The study found that the difference between damage for non-pet owners to pet owners was less than $40 overall, with an average for $323 in damage for tenants without pets and average of $362 for tenants with pets.

With rents being of significance in the New York City region and razor thin margins for profitability many property managers and landlords worry about the damage that can occur from having pets on their investment properties.  Increased insurance charges and liability for dog bites are also concerns.  Most of the concerns can be addressed by the premium rents received from tenants who are in need of pet-friendly housing.  Also by addressing your concerns by picking up a deposit for pets should offset any damage to the property at the time of the turnover.  For most landlords and NYC property management companies it only looks like a win to allow pets in their properties.

If you are looking for property management services in the New York City area, Blue Harbour Property Management may be the company that will best fit your needs.  Whether you have a 1 bedroom condo or a multi-unit high rise apartment building, we can assist you in maximizing your expectations.  We are a full service NYC commercial and residential property management company servicing the areas of Queens, Brooklyn, Manhattan and the Bronx.

http://www.blueharbourpropertymanagement.com/advantages-pet-friendly-landlord/

NYC Commercial Property Recycling Fines Has Begun Effective August 1

The City has finally begun enforcing their new commercial recycling rules which has taken effective since August 1, 2017.  The rules which have been taken hold after a year long implementation period requires all types of buildings to segregate recyclable paper refuse from metal, glass and plastic containers as well as from disposable materials such as plastic bags and Styrofoam. If at least 10% of a building's trash consists of textiles and food waste, the owner also will be responsible for filtering out that material and arranging for its proper removal.  Businesses can decide whether they want to collect all recyclables together or they can separate as long as recyclable materials are kept separate from trash at all times. The fines for non-compliance will begin at $100 and will increase to $400 for the third violation.

“The city’s goal is to make recycling consistent at home, at work and at play,” says Bridget Anderson, Deputy Commissioner, Recycling and Sustainability, NYC Department of Sanitation (DSNY). “Commercial recycling rules used to be different from the residential rules. Now they are consistent.”

Commercial landlords and property management companies will bear the responsibility of designating containers for each of the different varieties of refuse and inform tenants, building staff and their private carting service on how to use them. According to Crain's New York Business  the
Department of Sanitation estimates that out of the 9,000 tons of waste generated daily by businesses, up to 54 percent can be recycled. An additional organics component could increase that number up to an incredible 89 percent they calculate.  The City also believes that these new rules will facilitate in meeting their goals in zero waste in landfills by 2030.

The City is attempted for businesses to get up to speed with the new rules.  NYC property managers and landlords can visit nyc.gov/zerowastebusinesses and on.nyc.gov/zerowaste-business-resources to sign up for a free training, host a training, or download signs and education materials. To contact DSNY or request a business recycling training, email commercialprograms@dsny.nyc.gov.

http://www.blueharbourpropertymanagement.com/nyc-commercial-property-recycling-fines-begun-effective-august-1/

City Council Enacts New Law To Prevent Gas Leak Injuries

The City Council of New York City passed Local Law No. 153 in November 2016 and it was signed by the Mayor in December.  The law is finally in effect and it will effect landlords and NYC property management companies going forward.  Specifically the law says as follows:

"The owner of a dwelling shall deliver or cause to be delivered to each tenant and
prospective tenant of such dwelling, along with the lease or lease renewal form for such tenant or prospective tenant, and shall post and maintain in a common area of the building containing such dwelling, a notice, in a form developed or approved by the department, regarding the procedures that should be followed when a gas leak is suspected. Such notice may be combined with any existing required notices and shall instruct tenants to first call 911 and then call the relevant gas service provider, whose name and emergency phone number shall be set forth on such notice, before contacting such owner or an agent thereof when a gas leak is suspected."

 The law is a direct response to the deadly gas explosion that took place in the East Village in 2015.  The explosion located at 121 Second Avenue occurred as a result of an illegal tap into a gas main.  The buildings adjacent to the explosion was completely destroyed between Second Avenue and St. Mark's Place.  Two people died and nineteen people were injured as well.  Eventually, the District Attorney's Office for Manhattan announced the indictment and arrest of five people in connection with the explosion.  Parties involved were the building owner, her son, the licensed plumber who subcontracted to an unlicensed plumber, the unlicensed plumber and an additional contractor.  They were charged with several charges, the most agregious being manslaughter and negligent homicide.
In order to comply with the new law, managing agents should post a sign in the hallway of the building. A sample of the sign you can read here.

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/city-council-enacts-new-law-to-prevent-gas-leak-injuries/

Landlords Are Being Fined For Reporting AirBnB Violations

Landlords are being fined for reporting violations of law against companies like AirBnb.  In October 2016 a law was passed in New York making it illegal to to list units for rent for fewer than 30 days if the owner isn’t present.  The bill which sat on Governor Cuomo's desk for many months while AirBnB tried to lobby for the Governor not to sign it was eventually passed into law as concerns regarding affordable housing and foregone tax revenue were of primary consideration.

Cuomo spokesperson Richard Azzopardi said at the time “This is an issue that was given careful, deliberate consideration, but ultimately these activities are already expressly prohibited by law. They also compromise efforts to maintain and promote affordable housing by allowing those units to be used as unregulated hotels, and deny communities significant revenue from uncollected taxes, the cost of which is ultimately borne by local taxpayers,”

The law would seem to a win for landlords who were the biggest proponents of the law being passed last year.  Although this may be the case, landlords are being fined for reporting the said violations.  According to a Crain's New York report, a landlord reported that one of their units was being used illegally to the Mayor's Office of Special Enforcement.  The Mayor's Office of Special Enforcement eventually issued an order to vacate but the landlord was still fined $3,400.00. The court case was appealed multiple times but the Court eventually held that the landlord is responsible for illegal usage of the units although it is the tenant who created the condition.

As a result of the decision, many believe the decision will have a chilling effect on landlords who would like to report the illegal condition.  “We urge all New Yorkers to report violations of the law, including those that create dangerous living conditions,” a spokesman for DOB told Crain’s. “But reporting violations by others does not mean landlords are shielded from their own legal duty of providing safe homes to paying tenants.”

“If you want us to cooperate with you, you have to stop fining us,” Jeffrey Goldman, a partner at Belkin Burden Wenig & Goldman who represented the landlord in the above reference case stated.  NYC Property management companies and owners must remain focused on curtailing and preventing the use of their units rented for fewer than 30 days.  The failure to do so will result in tremendous fines that the city will penalize you on.

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/landlords-fined-reporting-airbnb-violations/

City Council Likely Will Change Heating Requirements for NYC Landlords

In a move that will definitely affect NYC property managers and landlords in the colder months of the year, the city council will vote tomorrow on proposed new legislation would require indoor temperatures be at least 62 degrees between 10 p.m. to 6 a.m. Presently the law calls for between the hours of 6:00 AM and 10:00 PM, if the outside temperature falls below 55 degrees, the inside temperature is required to be at least 68 degrees Fahrenheit.  Also, at nighttime between the hours of 10:00 PM and 6:00 AM, if the temperature outside falls below 40 degrees, the inside temperature is required to be at least 55 degrees Fahrenheit.
It is being reported by Crain's  that a committee passed the bill which was similar to a failed proposal sent to committee in 2015.  The means the measure is likely to be approved by the full council tomorrow.  There is no indication that there will be an increase in the fines for the non-compliance of the proposed law.  Presently the fines are as follows:

• $250-$500 dollars per day for each initial heat or hot water violation
• $500-$1,000 per day for each subsequent violation at the same building during the same and/or the next calendar year from the initial violation or, during the same and/or the next heat season

If the owner fails to pay the Court ordered civil penalties, HPD will enter a judgment against the owner and the property and seek to enforce that judgment.

Proponents of the new legislation indicates that it will enhance the well-being of  tenants, particularly. As noted in the report, "Manhattan Borough President Gale Brewer added that boosting the nighttime minimum will bring New York City in line with Boston and Chicago, cities that often endure frigid winters on par with the Big Apple. The proposed bill would also get rid of the requirement that landlords only need to heat buildings when the outside temperature falls below 40 degrees, meaning the nighttime minimum would apply throughout the October 1 through May 31 heating season."

Opponents of the bill include environmental groups which state that increasing temperature will increase carbon emissions.  Mayor de Blasio has pushed to reduced emissions by 80% over the next three decades.  Property management companies in New York City as well as landlords should be aware of the changes and adjust accordingly based on the additional resources to be used based on the changes.

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/city-council-likely-will-change-heat-requirements-landlords/

Maximizing Your Returns During Peak Rental Season in NYC

In the property management industry, we know that the period between April and September is the peak season for rentals in NYC.  This is the time when renters, home owners and first-time home shoppers decide to make the transition to their next home. It’s is estimated that between roughly 78% of all moves happen during this period with the highest number of moves in June, July and August.

In that same period of time, roughly 30% of individuals decided to forego renewing their lease and look to new housing.  With so many people moving during this period it become critical that property managers in NYC become aggressive in advocating on behalf of your landlords and look for the best tenants available. Property managers should focus on turnover during this peak season in order to get the best quality tenants and increase rents if the market allows in your neighborhood.

During the peak rental season the market is at its highest point with respect to prospects looking for a new place to call home. This means you can ask for a slightly higher rent amount than you would in the off season. In addition to setting a higher standard for tenants, you can also set the rent slightly higher and still have a plethora of prospects who are willing to pay a bit more for their ideal home. Even in New York City’s feverish market, we can push rents a little further during this peak period.

As a seasoned real estate practitioner, property manager or landlord in New York City, you want your property to come available for rent April through September. The best way to ensure that this happens is to negotiate with your tenants for the lease to end during the peak rental period.  It can be advantageous on your end to sign a longer lease or shorter depending on when you are signing in order to gain the peak season for renters.

At Blue Harbour Property Management, we have helped many landlords maximize their rental revenues by using techniques such as using the peak season for the signing of leases.  This has become more important as rents have vacillated in Brooklyn, Manhattan and Queens for the last 18 months.

If you need assistance with the management with your property in the NYC region or would like additional information on what services we provide you can contact us at anytime at 718-843-1185.  We are a leader of small and medium sized properties in the New York City region.

http://www.blueharbourpropertymanagement.com/maximizing-returns-peak-rental-season-nyc/

Visit us at www.blueharbourpropertymanagement.com

Sales Prices Increase in Upper East Side of Manhattan as Second Avenue Subway Line Opening Looms

The first three stations on the Second Avenue subway line should be opened by December 31, 2016.  The lines opening in the Upper East Side of Manhattan will be at East 72nd Street, East 86th Street and East 96th Street.  The long awaited subway lines which have been in discussion for over a century but finally began construction in 2007 will be a huge financial windfall for both property owners and businesses running along that line.  The project which is in the first phase has already cost $4.45 and is considered the first major expansion of the subway lines in more than a half century.

Recent reports have indicated that sales prices along the route has increased roughly 27% per year for the last 5 years.  The report also indicates that rental prices will soar a few hundred dollars per unit along the lines.  Many international clients seek to live in the area due to a reduced level of street activity and the quaintness of community.  It is uncertain to know what the renewed interest in the neighborhood will do the aesthetic.  Many believe that more restaurants will open and younger people will move into the area due to the ease of transportation.  Also developers will be looking into constructing new buildings in the area as well.  A recent report indicates that Mink Development is building a luxury condo building on East 96th Street and Second Avenue as one example.  The firm purchased the site, previously a parking garage, in 2014, for $24 million. They are knocking down the parking garage to construct a 75,000 s/f property that will have 48 units.

There clearly will will be new opportunities for NYC property management on the Upper East Side of Manhattan.  With the influx of new tenants as well as new developments there is a need for experienced property managers to serve the community and maintain its vitality.  Blue Harbour Property Management is a prominent NYC building management company that can fulfill the needs of both landlords and tenants.  If you are in need of property management feel free to contact us at 718-843-1185 or info@blueharbourpropertymanagement.com

http://www.blueharbourpropertymanagement.com/sales-prices-increase-along-second-avenue-subway-line-opened-end-year/

Visit us at www.blueharbourpropertymanagement.com

NYC cracking down on Landlords failing to fix Violations by Withholding Rent

The City of New York has finally had enough of landlords not fixing violations attributable to their buildings.  They have decided to take a legal measure not used since the Koch administration and withhold rents it pays for public assistance at the buildings in question.  The two landlords had a combined 239 violations of which 78 of those violations deemed "hazardous".

The landlords were among eight warned by City Hall and Public Advocate Letitia James in May to clean up their buildings or have their rent withheld.  The buildings are located in the Bronx and upper Manhattan.  The rest of the landlords decided to make the necessary repairs and were not penalized.  For more information on this click here.

The failure to cure violations on your property can become a major obstacle in profiting on your investment.  Although the above result appears to be an extreme case, you can see what the failure to upkeep your property can lead to.  In most cases, the choice of a reputable NYC property management company can assist you in fixing violations on your property.  The majority of property managers have software that can detect when violations have been assessed and can take actions to cure them.  In the alternative, choosing a property mangement company in New York City that has the expertise in preventing the violations can save you money and hassle in the long run.

Troubleshooting potential issues and having a long term strategy in place for preventative measures are some of the services that Blue Harbour Property Management provides.  If you are in need of a property management company that can assist with your troubled property, call us and we will meet with you and determine what is the best plan for the health of your property.

http://www.blueharbourpropertymanagement.com/nyc-cracking-landlords-failing-fix-violations-withholding-rent/

Visit us at www.blueharbourpropertymanagement.com