Property received extensive damage after Hurrican Sandy and the insurance company is not covering the damages. Does the landlord of a rent stablized building in Brooklyn, NY have an opportunity to increase rent for its tenants?
Landlord / Tenant Lawyer
Dear what is best place to look?
Rent generally cannot be increased in Rent Stabilized apartments, but for the allowed increases as determined annually by the New York City Rent Guidelines Board for rent increases on renewal leases,on vacancy leases, and other special allowed and authorized rent increases.
Review the Rent Stabilization Rider you attached to your tenants' leases, for a quick review of the methods allowed by law for increasing a rent during an existing lease period.
Rent Stabilized rents cannot ordinarily be increased due to necessary repairs and necessary maintenance and for insufficient insurance proceeds to cover storm related damage.
It is certainly too early to anticipate if the NYC Rent Guidelines Board will allow a measure of rent increase for owners with uninsured storm damage.
There could be FEMA money as well as Small Business loans.
If you are considering a need for a rent increase grounded in hardship, you should start learning about the process here.
Retaining an experienced attorney with a background in hardship and major capital improvement increases, and insurance law and disaster recovery, should also be of benefit to you.
The answer provided to you is in the nature of general information. The general proposition being that you should try to avoid a bad outcome if you can.
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