Biggest Rent Hike In 3 Years Approved In Preliminary Vote

In a narrow 5-4 vote at Cooper Union last night, the NYC Rent Guidelines Board approved big potential rent increases on the city's million rent-regulated apartments. Though the final vote isn't until June 27th, last night's vote set the range of rent hikes somewhere between 3 percent and 5.75 percent for one year leases. The board also approved a 6.5 to 9 percent hike on two-year leases, and a 1 percent heating fuel surcharge. This would be the largest increase since 2008. As always, there was outraged howling from rent-regulated tenants and politicians.

"Landlords are making big profits and then the tenants are being squeezed," one tenant told NY1. "It's as simple as that. They don't deserve diddly." Natasha Missick, an actress and writer who pays about $1,000 per month for a narrow railroad apartment in Harlem, tells NBC New York she'll have to pay an extra $45 to $75 a month. But landlords say their properties are costing them an extra 6 percent more over last year. The increase is largely attributed to rising heating fuel costs; NY1 reports that fuel costs have risen 23 percent. And President Joe Strasberg of the Rent Stabilization Association says, "They only recognize fossil fuels, which is oil... and ignored the fact that many buildings in the City of New York are heated by steam, electricity and natural gas. For that, they have not even recognized an increase to compensate owners of those costs."

If the board increases rent on the high end of the range, it would be the biggest increase since 2008. After last night's vote, State Senator Daniel Squadron said, "The preliminary vote by the Rent Guidelines Board to increase rents by up to nine percent is nearly unprecedented and will make a tough time tougher for millions of tenants. It's another reminder that we need to renew and improve our rent laws now." Manhattan Borough President Scott Stringer said, "This city is exciting because all different people get to live here. It's not just a city for the very wealthy with enclaves for the poor, but there is a big, wide middle. And we're losing that middle every time you put huge rent increases up there or you tinker with the rent laws."

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By John Del Signore in News on May 4, 2011 10:00 AM

Comments [rss]

NYC Renters' Alliance

When are the politicians going to start pandering to us, the working market-rate renters?

This increase is still less than inflation, still less than landlord costs, and is going to be less than what the free-market tenants pay. This isn't fair to us -- the R/S tenants get a break, and we get screwed.

Join the fight for housing equality! sign up at facebook.com/nycrenters or nycrenters at gmail

69GeorgeWBush69

For a long time last year I was working 30hours/week making just above minimum wage. I had enough money to pay $700/mo in rent along with utilities and food. I didn't really have money for much else but I still was solvent and could enjoy many of the free things NYC has to offer. It's not that difficult to make it in NYC. I don't understand what everyone else's problem is.

Guest

well, 'guess i gotta work harder on my lotto winning strategy.

Stevennnn

Guess what? If you cannot afford the rent THEN MOVE. When you buy a house and a decade later cannot kept up with the expenses what do you do? Sell the place and move.

Guest

right because it's THAT easy to just find another place to move to.

jerk

whitecastlerock

Move to Detroit-that's what Bloomberg will tell you...

Stevennnn

Who said moving is easy? It's an hard decision to make. Life is hard. Deal with it.

whitecastlerock

I agree with you Stevennnnn-they should move away to areas they can afford. They should stop acting like victims when they are asked to pay 10% more a month. What? How dare they? I'm entitled to live here for the rest of my life at 1960's rates! My children were born here. The middle class is being pushed out! Maybe the middle class needs to work harder to pay their bills. if you can't go move to Buffalo...

roseonpolitics

Electricity prices should not even be considered when deciding to raise the rent. We all pay Con Ed! Plus, the rates they are talking about are way over inflation so even people with jobs are going to have a hard time paying the increase.

angry_pickle

I don't understand why electricity is included in the rent. Shouldn't each unit be responsible for this?

Big Red

Well, there are common electricity charges. Lights and elevators (where applicable) for example.

Bernie_Geotz_Squirrel_Luv

It's always 5-4, what does that tell you?
This is not good. This is why the city built that giant new homeless family intake center.

RabbiLaFunque

To all the jackasses who fell for the "gee, it really makes sense to have a successful businessman as mayor because he knows how to run things efficiently" koolaid--you got fucked and you were quite helpful in fucking the rest of us working slobs who are deemed worthless. Good job.

Guest

So the landlords are supposed to take it in the ass for the rising costs? It's a vicious cycle that affects EVERYONE, including Mayor Bloomberg. Hating the rich doesn't solve anything.

RabbiLaFunque

"So the landlords are supposed to take it in the ass?" That's a matter of their own preference.

Guest

Exactly, and they're refusing to do that. We, as renters, will now take it in the ass for them since our salaries don't increase with inflation as minimum wage does.

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splicernyc

Define "taking it in the ass" vis a vis landlords. I'm curious.

Guest

It's pretty much self-explanatory with my original first sentence. Landlords are people, just like you and me, struggling to survive and deal with rising prices for renovations, gas, electricity, maintenance, water & sewage. If rents aren't raised, they may not make enough to pay their mortgage and then all of those people bitching about the raised rents, may be kicked out onto the streets by the bank that takes over when the landlord defaults. Rents in this city are too damn high, as we all know, but that doesn't mean that the landlords aren't hurting too.

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unretrofiedforu

Ok? Yes - living isn't free. Still their lives aren't as bad as those in life that can't even make the rent.

I think you're still better off in life as a land owner than someone who for whatever reason, is stuck renting like a serf.

Guest

I don't think renting is akin to serfdom, but owning definitely gives people a leg up on renting. But with greater responsibility (owning), comes greater problems (having to pony up money for whatever the government has defined as making it habitable). In this economy though, renting seems to be less of a burden, at least in the short term.

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