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	<title>Observer &#187; Brooklyn, The Borough: Landlord As a Second Language</title>
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		<title>Brooklyn, The Borough: Landlord As a Second Language</title>

		<comments>http://observer.com/2008/12/brooklyn-the-borough-landlord-as-a-second-language/#comments</comments>
		<pubDate>Thu, 18 Dec 2008 22:12:18 -0400</pubDate>
					<link>http://observer.com/2008/12/brooklyn-the-borough-landlord-as-a-second-language/</link>
			<dc:creator>Nicole Brydson</dc:creator>
				
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		<description><![CDATA[<p><img class="alignleft" src="http://nyoobserver.files.wordpress.com/2011/06/washberg2.jpg?w=300&h=225" />A week ago, I received an email about a vacant industrial warehouse on 46th  Street in Sunset Park that recently sold for $1,100,000.  Each of the 4,900  square feet came to $225. I wondered why a bare bones property like this would  cost so much, but somewhere out there a landlord was probably excited that it  cost so little.</p>
<p>This is the landlord-tenant language divide. Tenants  often complain their landlord hikes up rent, adds fees or takes their time to  do necessary repairs. Landlords complain of their high property taxes, late  rent checks and the cost of maintaining properties. On each side is a gut  reaction to what a space should lease for, and often, neither is interested in  the other's cost-related woes.  </p>
<p>My roommate Will recently got a call  from Eugene, the owner of our two-bedroom apartment in Prospect Heights, about  our upcoming lease renewal.  A few of his initial suggestions sounded a bit  shady. Looking to increase his revenue, Eugene suggested we pay our own heating  costs on top of a $200 rent increase. Other suggestions, like charging extra  for our outdoor space, which was previously free, were also thrown out  there.</p>
<p>To catch you up to speed, Will and I <a href="http://www.observer.com/term/52690">moved into our apartment</a> on  Jan. 1, 2008,  and received a discount of half a month's rent to deal with the poor state in  which the apartment was delivered.  Beyond the $725 we saved, <a href="http://www.observer.com/2008/brooklyn-borough-1">we put our own  sweat and money</a> into scrubbing the floors, painting all the walls, and replacing light fixtures  and outlets, putting down carpets on ugly tile floors, and making an actual home  out of a previously mold and grease-covered, albeit spacious, mess.  </p>
<p>The  building was built around 1930, and what was one large four-bedroom  residence on the second floor was split up into a pair of two-bedroom apartments that  top three commercial spaces. Over the year we've resided on Washington Avenue  our oven was replaced; the ceiling has been temporarily repaired three times  thanks to a leak; and our bathroom faucet was recently replaced for the same  reason. Sometimes our heat doesn't come on, and Eugene recently relieved our  heating pipes of the air that had accumulated within them.
<p>For all this, we've paid  him $1,450 every month.</p>
<p>&nbsp;</p>
<p>AIMING TO WRAP MY head around why Eugene might  think his proposals were realistic in such an economic climate, I did some  research. Clearly a small-time landlord, Eugene bought our property in 1987, and  lived here for a while before eventually moving out to Coney Island with his  wife. According to a property records search for his name, he also owns the  space that houses a garden store down the street and an auto repair shop in the  Stapleton section of Staten Island. (This does not include, and I am not aware  of, any properties he may own that are listed under names other than his own,  though he's made allusions to other properties.) </p>
<p>According to city  records, Eugene will pay about $19,755 in property taxes this year on our  building, an increase of $3,279 over the previous year. Annually, the  residential units in my building rent for $31,800, on top of what rent he  collects from a women's accessories shop and a vegan restaurant  downstairs.</p>
<p>From the perspective of my landlord – who compared our  Prospect Heights rent with the high prices in Park Slope and concluded that he  should be making more of a return – neighborhood amenities have improved and  many new buildings  <a href="http://www.observer.com/2008/real-estate/brooklyn-borough-quietest-places-pass-sunday">have gone up over recent years</a>. According to <a href="http://furmancenter.nyu.edu/SOC2007.htm">a 2007 report</a> by the Furman Center  for Real Estate at NYU,  Prospect Heights had a rental vacancy rate of 2.7 percent and the median monthly rent, including regulated units in the area,  had increased to $801 from $696 in 1990.  </p>
<p>Despite the current economic  forecast, these factors embolden Eugene's argument in favor of a hike.  But from  the tenants' perspective, according to a study of Brooklyn real estate by brokerage <a href="http://www.marcusmillichap.com">Marcus &amp; Millichap</a>, 85%  of the housing stock in South Crown Heights/Prospect Heights (we live on the  border) is either rent-regulated or subsidized, so why are similar apartments  without the same regulations?</p>
<p>&nbsp;</p>
<p>AFTER WILL AND OUR neighbor, Chelsea,  played phone tag with Eugene about his proposals, we set up two meetings. First, to strategize a counter proposal and second, to present said proposal. Fearful that our market-rate apartment could garner  whatever amount another tenant would be willing to pay – and the recent influx  of young renters to the area would be far more willing to pay since we've fixed  up the place – we set out to bridge the landlord-tenant language  divide.</p>
<p>A few days before our meeting with Eugene, Will, Chelsea and I  sat in my living room and discussed our options. Will, having previously lived  in a rent-stabilized apartment, was pessimistic about what we could do to  prevent such a drastic increase, considering the lack of regulation on our  apartment.  Chelsea was worried that her smaller apartment, with no outdoor  space, would see the same increase as our larger and more expensive apartment.   </p>
<p>After my previous landlord kept rent static for three years, I felt like  our investment in the property should at least win us a freeze for the upcoming  year. Like a lot of people, we were all worried that the economic climate could  mean less income at the same time we might get hit with an increase in housing  costs. Like many basic costs of living now, income is not keeping pace with  housing costs.</p>
<p>Our proposal included a 5 percent rent increase - an extra $870  annually for my apartment and just above the 4.5 percent increase on one-year leases  for regulated apartments. Next, we devised a demonstration of how we've made real homes of  our previously uninhabitable apartments and plan on remaining in them for the  foreseeable future, guaranteeing rental income through a troubled economic  climate. We figured if Eugene wanted us to take on heating costs, we wouldn't  like it, but we would take on the extra $1,000 or so per season (for both  apartments combined) if the rental hike was capped at 5 percent.</p>
<p>Should the  meeting turn negative, we resolved to stick to our talking points: the country is  in a recession; we're great tenants who've put our own time and money into this  property. </p>
<p>Our aim was to stay positive, lest the landlord-tenant divide grow further.  </p>
<p>&nbsp;</p>
<p>FINALLY, THE DAY CAME and the three of us sat down with  Eugene. He began with the proposed $200 increase as he laid gas bills from  Keyspan across the table. Visibly distressed over the cost of heating, it was  clear that it had become his main concern. We offered to pay it, as long as our  rent hike didn't exceed 5 percent. He was starting to back off the $200 figure and we  knew it could be a lot worse.</p>
<p>After some consternation about his profit  margin, Eugene claimed to have a mortgage on the building to impress his point  upon us. He did have bills to pay, but I reminded him that property records  indicate the contrary, which he denied and stated &quot;that is my personal  business.&quot; </p>
<p>Next came the immediately dismissed suggestion that we chip in on  the water bill, but it was merely a last ditch effort before he finally agreed  to our proposal.</p>
<p>Overall, I think we came out fairly unscathed, though I  still do not believe that our costs should have gone up at all considering the  return. But I realized that when the rent goes up, there isn't always a return  for the tenant - hence the value of homeownership. The residential rent  increases in our building will pay about half of Eugene's tax hike this year,  and unburden him of heating costs. Though he did promise a new enclosed  structure for garbage cans and to fix pipes that tend to leak onto the floor  below, both of these issues are his responsibility anyway.</p>
<p>In the long  run, Eugene is like most landlords of average Brooklyn buildings: he squeezes  what profit he can, and re-invests as little as possible into the comfort of  those who live there. But from his perspective, Will and I live in a cheap  apartment, close to transportation and Prospect Park and with little discomfort  at all.  </p>
<p>But at least for now, we've compromised and bridged the landlord-tenant  divide.</p>
]]></description>
		<content:encoded><![CDATA[<p><img class="alignleft" src="http://nyoobserver.files.wordpress.com/2011/06/washberg2.jpg?w=300&h=225" />A week ago, I received an email about a vacant industrial warehouse on 46th  Street in Sunset Park that recently sold for $1,100,000.  Each of the 4,900  square feet came to $225. I wondered why a bare bones property like this would  cost so much, but somewhere out there a landlord was probably excited that it  cost so little.</p>
<p>This is the landlord-tenant language divide. Tenants  often complain their landlord hikes up rent, adds fees or takes their time to  do necessary repairs. Landlords complain of their high property taxes, late  rent checks and the cost of maintaining properties. On each side is a gut  reaction to what a space should lease for, and often, neither is interested in  the other's cost-related woes.  </p>
<p>My roommate Will recently got a call  from Eugene, the owner of our two-bedroom apartment in Prospect Heights, about  our upcoming lease renewal.  A few of his initial suggestions sounded a bit  shady. Looking to increase his revenue, Eugene suggested we pay our own heating  costs on top of a $200 rent increase. Other suggestions, like charging extra  for our outdoor space, which was previously free, were also thrown out  there.</p>
<p>To catch you up to speed, Will and I <a href="http://www.observer.com/term/52690">moved into our apartment</a> on  Jan. 1, 2008,  and received a discount of half a month's rent to deal with the poor state in  which the apartment was delivered.  Beyond the $725 we saved, <a href="http://www.observer.com/2008/brooklyn-borough-1">we put our own  sweat and money</a> into scrubbing the floors, painting all the walls, and replacing light fixtures  and outlets, putting down carpets on ugly tile floors, and making an actual home  out of a previously mold and grease-covered, albeit spacious, mess.  </p>
<p>The  building was built around 1930, and what was one large four-bedroom  residence on the second floor was split up into a pair of two-bedroom apartments that  top three commercial spaces. Over the year we've resided on Washington Avenue  our oven was replaced; the ceiling has been temporarily repaired three times  thanks to a leak; and our bathroom faucet was recently replaced for the same  reason. Sometimes our heat doesn't come on, and Eugene recently relieved our  heating pipes of the air that had accumulated within them.
<p>For all this, we've paid  him $1,450 every month.</p>
<p>&nbsp;</p>
<p>AIMING TO WRAP MY head around why Eugene might  think his proposals were realistic in such an economic climate, I did some  research. Clearly a small-time landlord, Eugene bought our property in 1987, and  lived here for a while before eventually moving out to Coney Island with his  wife. According to a property records search for his name, he also owns the  space that houses a garden store down the street and an auto repair shop in the  Stapleton section of Staten Island. (This does not include, and I am not aware  of, any properties he may own that are listed under names other than his own,  though he's made allusions to other properties.) </p>
<p>According to city  records, Eugene will pay about $19,755 in property taxes this year on our  building, an increase of $3,279 over the previous year. Annually, the  residential units in my building rent for $31,800, on top of what rent he  collects from a women's accessories shop and a vegan restaurant  downstairs.</p>
<p>From the perspective of my landlord – who compared our  Prospect Heights rent with the high prices in Park Slope and concluded that he  should be making more of a return – neighborhood amenities have improved and  many new buildings  <a href="http://www.observer.com/2008/real-estate/brooklyn-borough-quietest-places-pass-sunday">have gone up over recent years</a>. According to <a href="http://furmancenter.nyu.edu/SOC2007.htm">a 2007 report</a> by the Furman Center  for Real Estate at NYU,  Prospect Heights had a rental vacancy rate of 2.7 percent and the median monthly rent, including regulated units in the area,  had increased to $801 from $696 in 1990.  </p>
<p>Despite the current economic  forecast, these factors embolden Eugene's argument in favor of a hike.  But from  the tenants' perspective, according to a study of Brooklyn real estate by brokerage <a href="http://www.marcusmillichap.com">Marcus &amp; Millichap</a>, 85%  of the housing stock in South Crown Heights/Prospect Heights (we live on the  border) is either rent-regulated or subsidized, so why are similar apartments  without the same regulations?</p>
<p>&nbsp;</p>
<p>AFTER WILL AND OUR neighbor, Chelsea,  played phone tag with Eugene about his proposals, we set up two meetings. First, to strategize a counter proposal and second, to present said proposal. Fearful that our market-rate apartment could garner  whatever amount another tenant would be willing to pay – and the recent influx  of young renters to the area would be far more willing to pay since we've fixed  up the place – we set out to bridge the landlord-tenant language  divide.</p>
<p>A few days before our meeting with Eugene, Will, Chelsea and I  sat in my living room and discussed our options. Will, having previously lived  in a rent-stabilized apartment, was pessimistic about what we could do to  prevent such a drastic increase, considering the lack of regulation on our  apartment.  Chelsea was worried that her smaller apartment, with no outdoor  space, would see the same increase as our larger and more expensive apartment.   </p>
<p>After my previous landlord kept rent static for three years, I felt like  our investment in the property should at least win us a freeze for the upcoming  year. Like a lot of people, we were all worried that the economic climate could  mean less income at the same time we might get hit with an increase in housing  costs. Like many basic costs of living now, income is not keeping pace with  housing costs.</p>
<p>Our proposal included a 5 percent rent increase - an extra $870  annually for my apartment and just above the 4.5 percent increase on one-year leases  for regulated apartments. Next, we devised a demonstration of how we've made real homes of  our previously uninhabitable apartments and plan on remaining in them for the  foreseeable future, guaranteeing rental income through a troubled economic  climate. We figured if Eugene wanted us to take on heating costs, we wouldn't  like it, but we would take on the extra $1,000 or so per season (for both  apartments combined) if the rental hike was capped at 5 percent.</p>
<p>Should the  meeting turn negative, we resolved to stick to our talking points: the country is  in a recession; we're great tenants who've put our own time and money into this  property. </p>
<p>Our aim was to stay positive, lest the landlord-tenant divide grow further.  </p>
<p>&nbsp;</p>
<p>FINALLY, THE DAY CAME and the three of us sat down with  Eugene. He began with the proposed $200 increase as he laid gas bills from  Keyspan across the table. Visibly distressed over the cost of heating, it was  clear that it had become his main concern. We offered to pay it, as long as our  rent hike didn't exceed 5 percent. He was starting to back off the $200 figure and we  knew it could be a lot worse.</p>
<p>After some consternation about his profit  margin, Eugene claimed to have a mortgage on the building to impress his point  upon us. He did have bills to pay, but I reminded him that property records  indicate the contrary, which he denied and stated &quot;that is my personal  business.&quot; </p>
<p>Next came the immediately dismissed suggestion that we chip in on  the water bill, but it was merely a last ditch effort before he finally agreed  to our proposal.</p>
<p>Overall, I think we came out fairly unscathed, though I  still do not believe that our costs should have gone up at all considering the  return. But I realized that when the rent goes up, there isn't always a return  for the tenant - hence the value of homeownership. The residential rent  increases in our building will pay about half of Eugene's tax hike this year,  and unburden him of heating costs. Though he did promise a new enclosed  structure for garbage cans and to fix pipes that tend to leak onto the floor  below, both of these issues are his responsibility anyway.</p>
<p>In the long  run, Eugene is like most landlords of average Brooklyn buildings: he squeezes  what profit he can, and re-invests as little as possible into the comfort of  those who live there. But from his perspective, Will and I live in a cheap  apartment, close to transportation and Prospect Park and with little discomfort  at all.  </p>
<p>But at least for now, we've compromised and bridged the landlord-tenant  divide.</p>
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