NYC multifamily rental basics
There are roughly 3.5 M housing units in New York City. Two thirds of them are rental housing. Clearly a majority of people rent. Multifamily rental is a big part of real estate business in NYC. Significant capital (domestic and foreign) continues to flow into this sector. But there are investors who are hesitant to enter the market. A lot of it has to do with cumbersome rules and regulations around rental housing and many of them are unique to the city. Here are some basics about the business addressing many of the common questions. I hope the information will help clear some concerns due to unfamiliarity about the sector. Type of Housing There are regulated and unregulated housing in New York State. Rent control and rent stabilization are two types of regulated housing. An unregulated apartment is considered “free market” or “market rate” unit. Rent control (RC) limits the rent a landlord can charge for an apartment and significantly restricts the right of the landl...