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Manhattan rent-stabilized units sit vacant as upkeep costs rise
An owner of 45 rent-stabilized apartments in Washington Heights estimates it can take $30,000 to $60,000 per unit to make them rentable, leaving vacancies uncertain as rent increases are frozen for some leases.
Jose Tur owns two rent-stabilized rental buildings in Manhattan’s Washington Heights with a combined 45 units, and says that despite mortgages being fully paid off, more than two or three units have been vacant for an average of over two years, according to Commercial Observer.
Tur estimates it would cost $30,000 to restore a unit to livable condition, with the total often closer to $60,000 for a one-bedroom once repairs and upgrades are included. He points to aging plumbing and the need for electrical work and lead abatement, alongside additional cosmetic fixes, as drivers of costs.
He said the fate of the currently empty apartments is uncertain because he cannot justify spending to restore them in the stabilized rent environment, describing a risk that the units could remain off the rolls of New York’s livable spaces for the foreseeable future. Commercial Observer also notes that owners have argued that a failure to approve rent increases, while maintenance and insurance costs rise, leaves them with no choice but to keep more units empty as longtime tenants move.
The article ties the housing backdrop to New York City’s Rent Guidelines Board, which approved in June a freeze on rent increases for one- and two-year leases for city rent-stabilized apartments beginning Oct. 1. Commercial Observer adds that there is no reliable count of how many rent-stabilized units are offline specifically due to these cost pressures, citing prior reporting that referenced a letter from New York State’s Division of Homes and Community Ren.