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COVID crushed NYC landlord profits, rent board reveals


COVID crushed NYC landlord profits, rent board reveals

By Nolan Hicks
March 30, 2023

The number of rent-stabilized New York City apartment buildings operating in the red jumped from 6.5% to 8.8% as the COVID-19 pandemic wreaked havoc on landlord’s finances, according to new figures from the Big Apple’s rent board released Thursday.

Overall, the financial analysis from the Rent Guidelines Board found that building owners saw their net profits before tax drop 9% between 2020 and 2021 as the coronavirus ravaged the five boroughs.

However, many buildings remained in the black, with the average citywide rent for a stabilized apartment sitting at nearly $1,500 a month, while the average cost for its operation and maintenance hovered just shy of $1,100 per month.

The report is the first step in a months-long process to determine how much rents will increase for the city’s nearly 1 million regulated apartments, a question which will be settled in June.

Last year, the board voted to allow landlords to up rents by up to 3.25% for one-year leases and 5% for two-year leases. It was the biggest increase allowed in a decade.

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