We’ve often been asked by our readers to put more of a stake in the ground and take a stronger stance in our writing. In the spirit of fully embracing this suggestion, we are predicting the extinction of the “mom and pop” landlord. That’s right: we boldly declare that these landlords will disappear from the face of NYC’s rental landscape. By “mom and pop” we mean small landlords with fewer than 20 apartments throughout the city, for whom the rental game represents their primary business and income.
Our reasons are many:
- Rising carrying costs (including property taxes and energy expenses)
- Greater competition from larger landlords with deeper pockets and economies of scale
- The proliferation of luxury and ultra luxury rentals, spoiling tenants to expect more in terms of doormen, gyms, lounges, roof-tops, etc.
- The expanding rental infrastructure outside of the city, tempting price-sensitive renters to cross the water for higher standards
- The aging inventory of typical “mom and pop” properties, requiring a decent investment in renovations and upgrading
- The diminishing roommate pool of tenants (read: shares), as shrunk by the renewed enforcement of laws prohibiting the placement of divider walls in convertible properties
One such landlord we interviewed who wishes to remain anonymous noted: “My rents used to cover all of my expenses and still left me with a pretty penny of profit. Now, I almost have to pay my tenants to live here. The new generation of renters wants it all: stainless steel appliances, new floors and the rent they paid in 2001. I can’t win.” It seems that the increase in average rents has not trickled down to the smaller landlords in the city. While our headline boldness may be a bit tongue in cheek, the headwinds faced by these landlords are very real.
{ 2 comments… read them below or add one }
This high rent PROBLEM yes PROBLEM cannot continue!! All landlords want more rent including those large landlords but not even the large landlords are offering “good” properties for the money they are asking. Rents in Manhattan and the outer boroughs for a 1 bedroom apartment and a 2 bedroom apartment are more than many people pay for a mortgage for a 3 or 4 bedroom home with a backyard and garage. Landlords and quite possibly city government are taking advantage of the population and residents of this city. Landlords charge high rents because tenants are concerned about being able to rely on public transportation. Major Landlords should be required to open their books before the next rent increase. Rent increases even as there are many buildings that are half vacant. Just walk around at night and look up and you will see that there are a lot of vacant apartments that people cannot afford. Some landlords getting “developer benefits” from city government at the expense of tax payers who claim to be providing affordable housing are not providing those affordable apartments. This city has a huge housing problem that must be addressed immediately. Salaries are not keeping up with the high cost of living especially in this city and residents of this city are stressed to the max trying to work and live here. This problem has to be addressed. Corporations need to begin speaking out at the high rents. There is no quality of life. Work has taken over. This city has become more and more transient even though the media is telling us things are rosy. Here again the media are misleading the general public in the same way they tend to mislead on everything else. Writers no longer have the back bone to stand up and tell the truth or maybe even take on the issues in a serious way. Writers are not doing their homework and getting the right data or information. Media is no longer trustworthy and they keep talking with the same people over and over. You turn on one station and the next day the same person is on the next station. Pick up one news paper and the next news paper have the same person saying the same things as if they are trying to pound the information into our heads. What kind of nation are we becoming? We ought to take time out and figure out what kind of people we want to be. Will greed rule the day or will honesty and integrity and and morality and right from wrong and live and let live be the standard by which we conduct ourselves as a people and a nation?
Lets face it the small landlord does not want to spend the money to renovate their property. Have you ever rented from a small landlord they do not want to make repairs and provide services but they sure want to collect those rent checks.