Archive for Rental Buildings

Douglas Elliman released the February 2014 report for Manhattan & Brooklyn Residential Rental Markets. The February 2014 Elliman Report for the Manhattan & Brooklyn Rental Markets reported here  and summarized below was prepared by  Miller Samuel for Douglas Elliman.

M&B_Rental_Rpt_02-2014“Brooklyn rental prices increased as Manhattan rental prices continued to slip.”

The Manhattan rental market still is feeling the heat from the sales market as first time buyers are being pulled from rentals.  Rental prices remain below year ago levels, yet we don’t expect significant relief to tenants anytime soon.  Larger apartments are seeing more rental price increases than smaller apartments.  Although we are seeing a little more availability than a year ago, as well as an increased use of concessions by landlords, conditions still remain tight.   With no anticipated easing of already tight mortgage lending conditions and an improving New York City economy, we look to an active rental market for the foreseeable future.

  • For the sixth consecutive month, the year-over-year median rental price fell below the prior year level.
  • Median rental price declined 2.8% to $3,100 from the same month last year.  As a result, rental prices have generally remained flat on a monthly basis since last summer.
  • The market share of concessions nearly doubled to 9.1% from the same period a year ago, but fell from 13.1% in the prior month.
  • The overall vacancy rate for Manhattan edged higher to 1.87% from 1.69% in the same month last year, consistent with the expanded use of concessions by landlords.

All rental price indicators continued to post year-over-year gains in Brooklyn.

  • Median rental price rose 11.6% to $2,890 from the same period a year ago, making the ninth consecutive monthly gain.
  • These results outpaced the luxury market, whose median rental price increased 4.5% over the same period.

Douglas Elliman released the December 2013 report for Manhattan & Brooklyn Residential Rental Markets. The December 2013 Elliman Report for the Manhattan & Brooklyn Rental Markets reported here and summarized below was prepared by Miller Samuel for Douglas Elliman.

“Manhattan rental prices continued to slip as price growth in Brooklyn showed some signs of slowing.”Manhattan_Brooklyn_Rentals_Dec_2013

 Manhattan rental prices slipped for the fourth consecutive month but remain at high levels. We are beginning to see a small rise in landlord concessions as vacancy rates move up. Prices in the luxury market continued to grow and marketing times are brisk. The overall market remains very active and we anticipate similar conditions over the coming months as New York City’s economy continues to improve.

  • The last 4 months of 2013 showed a year-over-year decline in median rent. The median rent was $3,100 in December, down 1.6% from the same month last year, but was unchanged from the prior month.
  • The market share of rentals with concessions by landlords was 12.8%, up from 4.3% in the same month last year, but the size of the concession held steady at 1 month’s equivalent rent.

Rents in the Brooklyn market continue to rise but the pace of growth has begun to slow as it competes with a very fast moving sales market. There is a lot of strength in the entry-level apartment markets as the price gap between Manhattan and Brooklyn rents remain much closer than a few years ago. The luxury market remains strong and we expect the current tight conditions to remain through the winter.

  • Median rental price expanded 0.9% to $2,660 from the prior year period. The median rental price between Manhattan and Brooklyn expanded to $450 after hovering near $300 for most of last fall.

 

Comments Comments Off

 

Douglas Elliman released the October 2013 report for Manhattan & Brooklyn Residential Rental Markets.  The October 2013 Elliman Report for the Manhattan & Brooklyn Rental Markets reported here and summarized below was prepared by Miller Samuel for Douglas Elliman.

 “Manhattan rental prices weakened, caused by summer sales surge that poached demand” Mahattan_Brooklyn_Rentals_10-2013

This summer’s record sales activity pulled some of the demand from the Manhattan rental market, causing prices to slip slightly from prior year levels. Vacancy rates rose to more normal levels as marketing times and negotiability remained tight and the use of landlord concessions were limited. We don’t expect much relief in rental prices for tenants anytime soon as the economy continues to improve and mortgage lending conditions remain tight.

  • Median Manhattan rental price for October fell 1.6% below the same month last year to $3,150.
  • This decline was the second consecutive year-over-year drop, following the September drop that broke the 26 consecutive month record without a decline.
  • The use of landlord concessions in Manhattan remained limited, used in only 3.7% of all new rentals with an average rental equivalent of 1.2 months.

As they have for most of 2013, Brooklyn’s rental prices continued to rise. The pace of the market remained fast, with rapid marketing times and less negotiability than we saw last year. New rental activity was brisk, as tenants continued to resist rental price increases at time of lease renewal, seeking out greater affordability but with limited options. We anticipate tight market conditions through the remainder of the year

  • Other than last May, in Brooklyn all monthly year-over-year rental price indicators have not declined in 2013.
  • Brooklyn median rental price rose 6.8% to $2,699 over the prior year quarter.

Douglas Elliman released the August 2013 report for Manhattan & Brooklyn Residential Rental Markets.  The August 2013 Elliman Report for the Manhattan & Brooklyn Rental Markets reported here and summarized below was prepared by Miller Samuel for Douglas Elliman.

“The Manhattan rental market has not seen a decline in rents for 26 consecutive months.”Aug_2013_M&B_Rental

  • The Manhattan median rental price increased by 1.8%, to $3,150 from the same month last year. The last time this metric posted a decline was in June 2011, an unprecedented 26-month run. Concessions from landlords continue to be rare with only 2.5% of all new rentals offering some sort of special rewards, averaging the equivalent of 1 month of free rent.
  • Over the past several months, rents in Manhattan continued to rise, but at a much slower rate than we experienced earlier in the year. The number of rentals jumped this month as tenants sought greater affordability at the time of lease renewal. Negotiability and marketing times were low as the use of concessions by landlords remained rare. The tight mortgage lending and improving economic conditions are both helping to keep rents near record levels.
  • Median rental price in Brooklyn increased 4.6% to $2,850 from the same month last year, reaching a 5-year high. Average rental price and average rental price per square foot increased by 3.6% and 6.9% respectively from the same period last year
  • The number of new rentals in Brooklyn surged from this time last year as tenants sought relief from the rising rental prices. More potential tenants did this by seeking new places to rent in lieu of renewing existing leases. The price of a rental reached the highest level seen in over five years. Properties have been renting at a faster pace as negotiability continued to decline, consistent with the tight market.

Aug
25

Brooklyn Rents on the Rise – Rivaling Manhattan Prices

Posted by: | Comments Comments Off

Brooklyn, once thought of as the affordable alternative to Manhattan, is seeing a steady climb in rental prices.  Especially in the Williamsburg, Greenpoint, Brooklyn Heights and Cobble Hill neighborhoods, the average rent climbed to $3,035 in July, an 8.2% increase according to the Elliman Report for Manhattan and Brooklyn Rentals for July 2013.

Long time Brooklyn residents are concerned about being priced out of the market as more and more people are finding Brooklyn to be their primary option when looking at rentals, causing demand to go up, along with the prices.  Manhattan’s rents have been rising for more than two years, but the growth seems to be slowing.

 

Excerpted from NY Post column 

Douglas Elliman released the July 2013 report for Manhattan & Brooklyn Residential Rental Markets.  The July 2013 Elliman Report for the Manhattan & Brooklyn Rental Markets reported here and summarized below was prepared by Miller Samuel for Douglas Elliman.

“Although the rate of Manhattan rental price growth shows signs of easing, vacancy rates are low and rents remain at high levels”M&B_Rental_07-2013

  • Manhattan rents have been pressing upward for two years now without a break, but the rate of growth has been slowing. There were less new rentals than a year ago as landlords and tenants were more likely to agree on a lease renewal. Marketing time and negotiability remained low. Improving economic conditions and tight credit are expected to keep rental prices elevated.
    •  Manhattan median rental price moved 1.1% higher to $3,042 from the same month last year. Average rental price also posted a modest gain, rising 1.7% to $3,822 over the same period. Only 3.1% of rental transactions during the month had some form of landlord concessions. When a concession was provided, it was the equivalent of 1 month free rent, up from 0.8 months free rent in the prior year period.
  • Brooklyn continues to show a faster pace of rising rents than Manhattan. Demand from those priced out of Manhattan and would-be buyers who don’t qualify for purchases with today’s tight lending standards have tipped the balance toward rising prices. Marketing times remain fast and negotiability has fallen sharply. Like Manhattan, we expect more of the same conditions in the coming months.
    •  All rental price indicators continued to show year-over-year gains. Median rental price increased 5.1% to $2,675 from the same period last year. Average rental price expanded by 8.2% to $3,035 and average price per square foot increased 6.4% to $37.66 respectively from the prior year period.

Douglas Elliman released the June 2013 report for Manhattan & Brooklyn Residential Rental Markets.  The June 2013 Elliman Report for the Manhattan & Brooklyn Rental Markets reported here and summarized below was prepared by Miller Samuel for Douglas Elliman.

 

“The rate of rental price growth is beginning to show signs that the pace seen over the past two years might not be sustained”

Manhattan_Brooklyn_06-2013_Rental

  • After two months of slowing price growth in Brooklyn, there was a jump in rental prices for June, the largest gain in nearly a year. The rise in rents was consistent across all sizes. Properties are taking somewhat longer for landlords to rent and negotiability was basically unchanged from this time last year. Similarly to Manhattan, we don’t see much weakness in the direction of rental prices over the coming year.
  • There wasn’t much relief for Manhattan renters in June. Median price edged up slightly as rents remained at high levels and landlord concessions such as free rent were rare. Although negotiability remained unchanged, it is taking a bit longer than last year for landlords to rent their apartments. We don’t see much change on the horizon as tight credit and rising employment are expected to continue over the next year.

Douglas Elliman released the September 2013 report for Manhattan & Brooklyn Residential Rental Markets.  The September 2013 Elliman Report for the Manhattan & Brooklyn Rental Markets reported here and summarized below was prepared by Miller Samuel for Douglas Elliman.

“The heavy Manhattan sales volume siphoned off some of the excess demand in the rental market causing prices to slip.”M&B_rentals_09-2013

 After more than two years of rising rents, Manhattan prices slipped a bit as compared to last year. Rents haven’t been rising as quickly as they did in the previous year and the mortgage rate jump last spring pulled many would-be renters into the sales market by the end of the summer. Landlord concessions continued to be rare, but tenants continued to resist rent increases at the time of lease renewal by seeking better affordability if it could be found. With rising mortgage rates and tight credit we expect rents to remain at a plateau for the coming quarters.

  • Median rental price slipped 3.1% to $3,095 from the same period last year. This was the first year-over-year decline since June 2011, as heavy sales volume pulled more renters into the purchase market, incentivized by concerns over rising mortgage rates. The use of concessions by landlords remained limited to 2.7% of new rentals, averaging a 1.2-month rental equivalent.

 

Brooklyn rental prices continued to rise at a fast pace reaching their highest level in five years. Marketing times were faster and there was limited negotiation of list price. An increasing number of renters challenged by higher prices were seeking out affordability rather than renewal. We expect this trend to continue into next year.

  • Median rental price increased 10.4% to $2,800 from prior year levels, second only to the prior month which had been a 5-year high.

Douglas Elliman released the May 2013 report for Manhattan & Brooklyn Residential Rental Markets.  The May 2013 Elliman Report for the Manhattan & Brooklyn Rental Markets reported here and summarized below was prepared by Miller Samuel for Douglas Elliman.

“The rate of rental price growth is beginning to show signs that the pace seen over the past two years might not be sustained.”M&B_Market_May_2013

Strong price growth has defined the Manhattan rental market for the past two years. Landlord concessions remain rare and vacancy rates are still very low. Marketing times remain short and there is limited negotiation on price. The key drivers of high demand include improving New York City economy and tight mortgage lending conditions, both of which are expected continue through the year.

For the second consecutive month, Brooklyn rental price growth slowed from year ago levels but it is not yet clear whether this is a sustainable trend.  The market has enjoyed strong growth for much of the past two years and the number of new rentals jumped as more tenants opted to search for affordability rather than renew. The key drivers of tight credit and rising employment remain firmly in place and we expect Brooklyn rents to remain elevated over the near term

Comments Comments Off

Douglas Elliman released the April 2013 report for Manhattan & Brooklyn Residential Rental Markets.  The April 2013 Elliman Report for the Manhattan & Brooklyn Rental Markets reported here and summarized below was prepared by Miller Samuel for Douglas Elliman.

“Rental prices continued to trend higher, despite rising affordability of home purchases.”

Year to date, Manhattan rents continued to rise at the same brisk pace as last year. The gains in rental prices have been consistent across allManhattan_Brooklyn_Rental_Report apartment sizes compared to a year ago. Landlord concessions were used sparingly and the vacancy rate remained below long-term averages. The continuing strength of the rental market has been somewhat surprising since the Manhattan sales market has also seen rising prices and sales volume. Tight credit conditions and an improving regional economy continue to keep pressure on the demand for rental housing

  • Since the beginning of 2013, rental prices continued to push higher.
  • Median rental price jumped 6.5% to $3,195 from the same period last year, but was unchanged from the prior month.
  • The average year-over-year increase in median rental price has been rising since the beginning of 2013, averaging 5.1% year to date.
  • The vacancy rate was 1.58% in April, exactly the same rate in the same month last year, but below
  • The 1.7% 5-year monthly average.

 

Comments Comments Off

The New York Department of Buildings shares the following tips for recognizing an illegal apartment:

  • Windows – Legal rooms require windows with a minimum size of 12 square feet.  Total window area must be 1/10th of the room size.  For example: a 100 square foot room must have at least 12 square foot (the minimum allowed) of window area.
  • Rent – Rents that are significantly lower than comparable apartments
  • Egress – Tenant should be able to access all available exits either directly from the unit or a public hallway.  To be legal, the apartment must have two means of egress.
  • Utilities – A listing in which utilities are included in the rent may be a way to prevent the disclosure of an illegal apartment.
  • Mail – Tenants should be able to receive mail at the building address and should not be required to obtain a separate P. O. Box.

If you suspect the apartment you are considering may not be legal,  you should request a copy of the certificate of occupancy for the building that shows the apartment is legal.  In addition you can search the Department of Buildings’ Building Information System (BIS) for most recent certificate of occupancy to check the stats of the apartment.

May
07

Bigger Loans = More Hoops to Jump Through

Posted by: | Comments Comments Off

Jumbo loans, for most lending institutions, are defined as mortgages over $625,500, and they come in three sizes: small, medium and large. Face it if you’re buying in New York City and need a mortgage, you’ll likely be seeking one of these jumbo loans.

While several banks offer these Jumbo Loans, the may have different requirements.  For Example

  • EverBank offers a Jumbo Loan up to $1.5M and requires a 20% down payment, and 12 months of cash reserves; a loan from 1.5M to 2.5M requires a 30% down payment and 18 months cash reserves; and over $2.5M requires $35% down and 2 years of cash reserves.
  • Bank of America offers a jumbo loan up to $1M with a 20% down payment; a $2.5M to $5M loan with 30% down; and $5M+ loans require a 35% down payment.
  • Wells Fargo Home Mortgage has several tiers starting at $417,000 to $2M with 20% down payment and 12 months cash reserves.  After that, for every $1M above the $2M requires an extra 5% down and additional cash reserves.

While most lenders build in some flexibility to their loan programs, expect to see credit score requirements of 720 and above and debt-to-income ratios of 40% to 43%.  You might be able to get more favorable terms if you have a strong financial profile.

Some other things to think about:

  • Relationship:  The first place to look is the lender where you do the majority of your business.  If you have a strong relationship with your lender already, they may be more likely to relax their requirements.
  • Identify liquid assets:  Some lenders will accept assets such as stocks that can be liquidated easily if the borrower does not have sufficient cash reserves to meet the tier requirements.
  • Shop sooner rather than later:  The new Consumer Financial Protection Bureau rules go into effect in early 2014.  These protections will tighten standards for verification of borrower income or assets and make interest-only loans difficult or impossible for many borrowers to obtain.

Based on Wall Street Journal article by Anya Martin

Apr
26

Pet Owners and New York City Apartments

Posted by: | Comments Comments Off

Pet friendly buildings, no pets allowed and all variations in between face pet owners when looking for a new apartment.  Some pet-friendly co-ops and rental buildings place restrictions on number, size and breed of pet.  What’s a pet owner to do?

Some pet owners will offer large sums of money to cover potential damages to flooring  and lobby carpets.   Some large dog owners will fudge the pet’s weight and breed to gain entrance to a building.  Some co-op boards require interviews and references for the pet (see our article Board Interview for Pets ).  Pet-friendly co-ops and rental buildings have many restrictions on pets.  Many pet-owners are devoted to a certain breed, and choosing a different (smaller) breed is hardly a compromise in their eyes.

During the market slump when many landlords were desperate to fill vacancies, you could move an elephant into your apartment.  Now that the market is tight, landlords are choosier.    Restrictions on pets have become the norm, especially with large dogs and certain breeds like Dobermans and Rottweilers.   In almost all cases approval is required for more than two animals. 

Buildings generally have rules for many reasons.  People are frightened of animals, especially big scary looking pets; there are concerns about property damage; barking disturbs the peace of other residents; jumping and nipping make people uncomfortable; and multiple cats can cause unpleasant odors.   Add to that that there are millions of people with fears, phobias and allergies, and it’s little wonder that pets are becoming even more of an issue.

There are generally exceptions to the rules.  Service dogs for people with disabilities can be allowed with proper documentation.  If the pet owner can provide proof the animal is trained as a service animal and documentation from a licensed medical professional, they might get a waiver. 

 To a pet owner, the pet is part of the family.  Finding a place for them can be frustrating and heartbreaking often causing the owner to pass on an otherwise great place for the humans to live. Nearly half the apartments that would be otherwise acceptable will be taken out of consideration if you have pets.  Patience, persistence and compromise are required when looking for an apartment when apartment hunting with Fluffy or Fido.

 

Based on New York Times article.

Comments Comments Off

Douglas Elliman released the March 2013 report for Manhattan & Brooklyn Residential Rental Markets.  The March 2013 Elliman Report for the Manhattan & Brooklyn Rental Markets reported here and summarized below was prepared by Miller Samuel for Douglas Elliman.

 

“Since the beginning of the year, the rental market has found its second wind, resuming a higher rate of price increases.”Mar_2013_Manhattan_Rental

 

Manhattan:  For the past three months, the year-over-year rise in median rent price has increased. After bottoming to 0.8% in December of 2012, the percentage changes for January, February and March of 2013 were 2.6%, 4.7% and 6.7% respectively. The vacancy rate fell to a 2-year low of 1.46% in March 2013 from 1.89% in the same period last year.

 

Brooklyn:  Though 2013 began with no growth in the year-over-year median rental price, rents resumed rising with a 7.2% gain in February, followed by an 11.3% increase in March.

 

Comments Comments Off

 Q:  I am considering purchasing a condominium unit in a small building, but the condominium board does not have an accountant prepare audited financial statements.  Is there a requirement that condominium and co-op boards have accountants prepare audited financial statements?

 A:  No, there is no requirement that boards have accountants prepare audited financial statements.  However, audited financial statements prepared by an accountant provide assurance that the financial statements fairly reflect the building’s financial position.  Consequently, an audited financial statement will provide a prospective purchaser with confidence that they have an accurate picture of a building’s financial condition.  Purchasers considering a condominium or co-op that does not have audited financials should proceed with caution when conducting their due diligence.

 Important Tip:  As mentioned in a past Legal Line Question of the Week, audited financial statements for a condominium or co-op are one of the due diligence items that your real estate broker should request from the seller or managing agent as soon as possible in order to expedite the transaction.

 Based on REBNY article by Neil B. Garfinkel, REBY Residential Counsel Partner-in-charge of real estate and banking practices at Abrams Garfinkel Margolis Bergson, LLP   

This post is provided as informational proposes only and should not be construed as legal, accounting or tax advice by the RealEstateGeezer. You should seek advice from a qualified professional