Rent Stabilized and Rent-Controlled apartments are highly coveted in NYC. Tenants save a great deal of money living in these units and landlords are constantly looking for ways to move tenants out.
Landlords who are serious about this often approach tenants with buyout offers. A buyout can be good for both tenants and landlords if the price is right.
That begs the question of how do you determine the right buyout price? How much should a landlord pay a tenant to move out of a Rent-Controlled or Rent Stabilized apartment?
BraschLegal has helped dozens of tenants get more money from landlords in buyouts.
Calculating a buyout offer
There is no standard amount or calculation used to determine NYC buyout offers. Instead, many factors should be considered. Here are a few considerations involved in a buyout:
- The tenant’s health and age. Younger tenants are likely to remain in an apartment longer than older tenants and they likely have higher living expenses, so it may cost more to buy them out
- The property’s location. Buyout offers will be higher if the property is in an “in-demand” location, or if the landlord has a great deal pending that he wants to move on.
- The current rent amount. If rent is far below market, a landlord could be willing to make a higher buyout offer since they can make improvements to the property and then charge higher rent. The more the landlord stands to gain, the higher the buyout offer could be.
- The tenant’s right to remain in possession if the buyout is not concluded. Buyouts may be lower if the landlord has other means/ methods of removing a tenant from the property through litigation. Tenants may also be more inclined to accept buyout offers if they know these other options exist. You should contact a landlord-tenant attorney to help ensure you get the most from a buyout offer. To discuss your buyout situation, please call the team at Brasch Legal today at 212-267-2500.
- Tenant relocation costs. The tenant will have to move somewhere else. They will have moving costs and new rent to pay. The higher these costs, the higher the buyout offer should be.
- The landlord’s costs to keep the tenant in possession. Sometimes it costs the landlord more for a tenant to remain in possession of their apartment. Loan holdouts, for example, can be costly for landlords who must still maintain services and standards of maintenance. They may be willing to make a high offer just to avoid paying these costs month after month.
The right buyout amount depends on you
Buyout offers can be extremely complicated. If you have been approached with a buyout offer and are considering it, consult a landlord-tenant attorney. Attorneys who specialize in this area will be able to analyze the merits of the offer. They’ll explain the pros and cons and help you consider options you never even thought of. If you want to proceed with a buyout, your attorney can negotiate on your behalf and help secure a better offer.
Contact Brasch Legal for help evaluating a buyout offer
If you have been approached with a buyout offer, contact Brasch Legal. We have worked in the field of landlord-tenant law for over 20 years and bring years of experience negotiating buyout terms. We have helped many tenants get substantially higher amounts in buyouts.
To discuss your buyout situation, please call the team at Brasch Legal today at 212-267-2500.