NY Rental Homes Now More Expensive
New York City recently had rental homes prices increased. This is despite the pleas to freeze this action. One million stabilized apartments in New York now are expected to increase their rents, as officials approved rent increase. This is a first time in 40 years.
The meeting saw tenants of homes for rent and demonstrators who expressed their opposition to this law getting approved. The board which approved this, also known as the Rent Guidelines Board, was the one that authorized that rent be increased. More specifically, rents can increase by 3 percent on one-year leases on houses for rent, and 6 percent for two-year leases.
Last year, the approved set of increases was the highest since 1989. This was a 4.5 percent increase for one-year leases, and 8.5 percent for two-year leases. That meeting was disrupted by some tenants who protested the law to be approved.
According to board member Ronald S. Languadoc, the Americans are currently experiencing a severe recession that is why he proposed for the increase to be frozen. He further added that this year is not a year for rents to be increased.
In the weeks before the meeting was held, some officials joined together to call on others to have rent freeze across the country. This was actually one of the first times when the push for a freeze was able to gather momentum. The board however, has never approved a freeze since 1989. But the officials who were pushing for it were saying that it was justifiable by the current state of the economy.
According to Mayor Michael R. Bloomberg, he left the decision to the board. He released this statement before the board approved the rent increase. The result was a 5 to 4 vote. Chairman of the board Marvin Markus said that a rent freeze is really never going to happen.
This would affect a lot of residents in New York who are living in rental homes. However, another area or segment is the one represented by landlords. Whether they will benefit from the new law or not is now the question. According to Joseph Strasburg, Rent Stabilization Association president, the rent increases would result to everyone losing. There are no winners. Both tenants and landlords of rental homes would experience the negative effects of this move.
