Questions of Rent Tactics by Private Equity

[Joanne98]

Private investment firms have been amassing what may seem like unusual stakes in New York real estate: they have bought hundreds of apartment buildings with thousands of rent-regulated units across the city that produce decidedly meager returns.

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As regulatory filings and promotional materials show, the companies expect to generate higher returns quickly by increasing rents after existing tenants vacate their units. Their success depends upon far higher vacancy rates than are typical in rent-regulated apartments in New York.

Some residents and tenant advocates say that they began seeing what they consider a pattern of harassment of low-income tenants this year and suspect that it is a result of the new owners’ business models. Tenants have been sued repeatedly for unpaid rent that has already been received by the landlords; they have been sent false notices of rent bills, lease terminations and nonrenewals; and they have been accused of illegal sublets.

The companies dispute the charges of harassment and say they are protecting their rights.

Nevertheless, tenants must answer the notices in court, but many have responded by moving out, court documents indicate. When they vacate the apartments, the owners can increase the rents substantially.

“Predatory equity is undermining the best efforts of New York City and state elected officials to slow the loss of affordable housing,” said Benjamin Dulchin, deputy director of the Association for Neighborhood and Housing Development, a nonprofit organization. “Both the private equity funders and the lending institutions are aware, or should be aware, that harassment of tenants is taking place as a result of their financial models.”
http://www.nytimes.com/2008/05/09/business/09rent.html?_r=1&em&ex=1210478400&en=1522985051b78905&ei=5087%0A&oref=slogin

SCUM!!!!!!!!

[alstephenson]

1. "harassment of tenants is taking place as a result of their financial models"

Their financial model is GREED.

[SharonAnn]

2. That's exactly their intention!

[Igel]

3. Thanks for the reminder.

After four erroneous eviction notices for failure to pay rent in the last four years--turning over copies of the cancelled checks for the non-payments tends to blunt the eviction notices' force just a bit--I'm now going to have to prove for the second time this year that I did indeed pay for everything I was supposed to.

This time they're being more clever. They're not saying exactly what I didn't pay for, they just have a goofy number. Moreover, they're not being clear as to when I didn't pay it--maybe in December, maybe in January, maybe later. Maybe lots of little underpayments.

Good thing I was the bookkeeper for a few businesses in the past. And have lots of cancelled checks.