Newport Rental Crazy Price Increase 20-25%+

Submitted by recklessmax80 t3_11mvz4l in jerseycity

Hello All

Anybody here got their lease renewals recently done from Newport rentals in Downtown jersey city. How much are you guys seeing as percentage rent increase's for 2 bed 2 bath apartments ? Mine is around 20%+ for 16 months lease , 25%+ for 12 month lease. basically they re bumping me up to inflated rent like brand new building sin jersey city This is without being on any incentives like free month, pandemic rent etc with them and zero facilities in the building.Based on past experience they are very hard to negotiate so anybody able to successfully challenge them against these increases legally with recent rent of bill rights by federal government as well as the fact that these buildings even though not under rent control may not have their mandatory exemption certificate filed on yearly basis which was discovered in court cases of multiple high rise buildings in jersey city last year where residents were getting hits with these crazy increases. Any protections for renters that could be successfully leveraged or only option is to move out

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blondieboo12 t1_jbkfw8e wrote

All the landlords in jersey city use the same AI tool to “price optimize”. It’s basically removing all competition in the market. Everyone I know, including myself, who even a year ago could easily afford rent is now being forced to look elsewhere

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recklessmax80 OP t1_jbkqetj wrote

Yes i hears that all big property managers used the same third party system to determine future rents which is biased based on house affordability towards generating highest profits for them and make it sounds the normal rent across everyone for that area

Although im open for landlord to make profit off their properties this is like taking undue advantage akin to some retailer who were selling masks during the pandemic at ridiculously high prices (price gouging) because of supply chain issues until the government intervened

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kamobeans t1_jbkefoy wrote

They literally are looking to increase ours the same, and they also price fix the area so they can set the market rate.

Write the councilman. Others are also complaining. Strength in numbers -

James Solomon Jsolomon@jcnj.org

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recklessmax80 OP t1_jbkr24b wrote

> Thanks for sharing . Were you able to get any meanigful response from them
>
>Also do you have any inputs on handling of such cases by jersey city superior court (landlord-tenant)
>
>Jsolomon@jcnj.org

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tralmix t1_jblyrq1 wrote

He had a meeting in person with residents of parkside east and west, only myself and my neighbor showed up, but he was responsive. Not sure how much good it will do, but I’m happy to chat more with you if you want

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ask_risa_she_knows t1_jbm14sz wrote

Hey, did it make any difference? I'm willing to join too.

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tralmix t1_jbmknsb wrote

No difference as of yet. but going to the city council meetings, there is growing support across the city… it’s a legit problem. I can elaborate on what I know, and how to get involved, and I actually need to check up on some info councilman Solomon’s office was supposed to get us about the Newport area.

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Ainsel72l t1_jbm8ko1 wrote

Renters are now in the same unhappy boat with homeowners who have been hit with big property tax increases. It stinks for everyone involved. The wailing will be deafening, but nobody cares. The never-ending stream of people with more money to burn are waiting to replace you, and they will consider your rent a bargain. ☹️

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recklessmax80 OP t1_jbmk7o5 wrote

I am not sure how this comment is useful when its already been commented that the tax increase is a few percentage points of the total rent increase based on calculations and does not justify the rent gouging.

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Ainsel72l t1_jbmofr2 wrote

It was only an observation, not a calculation. It flew right by you. Please return to your calculations.

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manchotlife t1_jblx6ui wrote

Ours was up ~31% we negotiated down to 25%. Still BS

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Salt_the_snail_Gail t1_jbolvgl wrote

At some point you’d have to factor in the cost difference between renting at such a high price point vs buying a condo in the area. Not to say that makes sense for everyone but the rents around here are so mind boggling and my mortgage has stayed basically the same for years

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Delicious-Storm828 t1_jbk2dy5 wrote

Consider following https://twitter.com/RentControlJC on Twitter who are trying to fight the corruption in this city regarding rent control.

https://patch.com/new-jersey/hoboken/luxury-waterfront-tower-now-falls-under-rent-control-jersey-city-says

https://hudsoncountyview.com/jersey-city-council-hears-more-complaints-about-rent-control-and-right-to-counsel/

https://www.gofundme.com/f/portside-towers-legal-fight-for-rent-control

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ComeBackAndHauntMe t1_jbkw47v wrote

Also, email RentControlJC@gmail.com

This is the Portside Towers tenants who have been appearing at City Council meetings since November. They'e been regularly covered in both the national and local press since the fall for their push for tenants' rights and enforcement of the rent control law in Jersey City.

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wallfacer6 t1_jbkze9q wrote

Try negotiating and see if they could drop it down to what you are comfortable with. But rents are really up right now in the whole area

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recklessmax80 OP t1_jbmpgkw wrote

They usually dont care since you dont speak to the landlord directly. Rents are really high because of the way all big property managers are using the same third party for pricing and smaller landlords see that and follow suit although they are more open for discussion for good tenants

Also i strongly feel this is going to end badly as we go into the year . There is no way these kind of high interest rates by Fed doesnt hurt the economy over long term as without the rent decline the inflation does not come down to the 2% mark. This kind of price greed eventually dosent end well for everyone involved

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jkim3360 t1_jblmcsw wrote

I live in newport and they didn’t budge when I tried

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sutisuc t1_jbl86gd wrote

It’s especially frustrating cause NJ allows municipalities to have rent control but explicitly exempts any building that is less than 30 years old so this is happening all over jersey city with the newer buildings.

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ComeBackAndHauntMe t1_jbmnc81 wrote

This is not correct information and that’s part of the problem. It’s easy to dupe tenants who just repeat what they hear and who don’t read and think critically for themselves. The state statute regarding rent control (the NJ Newly Constructed Multiple Dwelling Law aka NJSA 2A:42-84.1 et seq) and the Jersey City rent control ordinance (Chapter 260) have very specific requirements about what needs to have happened and when in order for a building to have an exemption for rent control. There is no “one size fits all” automatic 30 year exemption. And not all exemptions are for 30 years. As a matter of fact, the default for all buildings in Jersey City is that they are subject to rent control unless specific requirements have been met.

Perpetuating incorrect information allows both the city and landlords to take advantage of tenants who don’t know better.

Now for the cya: I’m not a lawyer but I do know the local and state rent control laws very well. Feel to DM for specifics if you like.

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sutisuc t1_jbmorzl wrote

That was my understanding of the law. Basically buildings had to opt in to the exemption. That’s not correct?

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ComeBackAndHauntMe t1_jbmroaw wrote

It’s actually more nuanced than that. There are specific requirements that must be met by both the building and the building’s original owner. I’d be glad to walk through them with you. Feel DM me and I’ll explain.

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sutisuc t1_jbmuofk wrote

Why not just post it here so everyone else is aware?

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ComeBackAndHauntMe t1_jbo6bmk wrote

You’re absolutely right. That’s the right thing to do. Here is a start and I will post again later today after I draft a comprehensive summary.

This is the NJ State law: https://www.state.nj.us/dca/divisions/codes/publications/pdf_lti/new_const_m_dwell_law.pdf

In addition, if you live in Jersey City, this is our local law, Chapter 260: https://library.municode.com/nj/jersey_city/codes/code_of_ordinances?nodeId=CH260RECO

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sutisuc t1_jbq26cc wrote

I mean the state law basically confirms what I was saying, as long as it’s 30 years or newer and they inform you of it in their lease they’re exempt

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miranomejoda t1_jbnr2m8 wrote

this is the new cash cow reality. know you know why majority fo new construction are rentals only.

​

Found a new way to rip people off without the mortgage scams. Not everyone can buy a house but everyone needs a place to live in.

The next several generation of kids are going to find it impossible to own a home let alone have the finances to be able to barely afford to rent one...

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[deleted] t1_jbk6ckh wrote

[deleted]

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flapjack212 t1_jbk7tre wrote

i just need to point out the obvious that while taxes increased 32% that number is not directly comparable to your 25% rent increase....

said simply, it is highly unlikely that a rent increase of 25% will not cover a tax increase of 32%. however i'm sure the property tax issue is indeed one of the major contributors to the rent increase

to OP: unfortunately there are only 2 options -- negotiate (and win), or move out, a lot of folks are stuck in the same situation because the increases have been so high

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[deleted] t1_jbk9cyi wrote

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micmaher99 t1_jbkdyne wrote

I work in commercial real estate. This is not true. Debt service coverage ratios on major commercial real estate never let a borrower pay 100% of the NOI in interest.

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flapjack212 t1_jbkajzw wrote

in your own example, if rent = mortgage + tax + maintenance and tax increases by 32% to balance the equation the rent side does not need to go up by 32%

how much the rent side needs to go up depends on the size of the tax component vs the mortgage + maintenance, which is again not directly related to each other. however you can make some directional guesses, in any case leading you to the conclusion that 25% increase in rent likely more than covers 32% increase in taxes.

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iron64 t1_jbkhqnb wrote

The property tax increases this year were unprecedented and contributed a lot to what you are seeing. Yes, there will always be landlords looking to bring their units in-line or just under the market rate for the brand new units in the city. But a lot of families that have owned for a long time (since the 90’s), who had their properties reevaluated in 2019 (probably had their taxes tripled then), and then got hit with the 30% increase in October are forced to either sell or increase rent to continue living here.

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pixel_of_moral_decay t1_jbkk3xo wrote

It is when you realize minimum wage climbs each year in NJ (for another 2 years?), and unionization across the river made labor way more expensive here.

Newport buildings have concierge and porters maintaining them. Their wages had to go up about 20% if they kept up with the region. A bit more if it was someone they really wanted to retain.

And wages are likely ~40% of the operating budget for any luxury building that age.

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recklessmax80 OP t1_jbm4252 wrote

In all honesty i am very friendly with the handyman and porters as i have lived here for few years and their wages have not gone up 20% or 40% from what they tell me. Infact they laid off staff during the pandemic and have since not hired the same number of them back to service the building . Even if some hourly inceases are factored in it still does not justify the monthly price increases of 20-25%

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pixel_of_moral_decay t1_jbmc2r6 wrote

They aren’t telling you the full story. Year over year it’s about 20% from 2021 to 2022 from the budget I’ve seen for door staff in my building. And still short staffed because you make way more if you take a job across the river, and there’s a ton of openings there.

You should do the right/ethical thing and suggest they job hunt then, because they can do way better in this economy.

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recklessmax80 OP t1_jbkk187 wrote

Sorry but thats a poor justification. A 32% tax increase on a 500K property would increase property taxes by 600$ a quarter or 200$ per month which is less than 5% of the rent so there is no comparison to the price gouging

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pixel_of_moral_decay t1_jbmo5mv wrote

$200 per month is “Less than 5% of the rent”?

$500k downtown is an walk up 1 bedroom or studio… that needs renovation. Definitely no amenities other than a mailbox. Where in Newport is there a >$4,000/mo studio apartment with no amenities?

You’re math seems really off here.

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flapjack212 t1_jbp3cy3 wrote

yeah OP's math is definitely off. by my guess the tax increase could justify anywhere between 10-15% increase in rent.

the next biggest component is probably the increase interest rates, as commercial loans are often variable rate. interest rates have doubled

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pixel_of_moral_decay t1_jbpd4y0 wrote

Next is by far labor.

Look at condo budgets and you’d see it’s always about 50% labor directly (doorman, porter) and indirectly (plumbers, hvac, carpet cleaners etc). That’s outpaced inflation by quite a bit due to minimum wage increases, unionization in NY for doormen and a shortage of tradespeople.

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recklessmax80 OP t1_jbu66wf wrote

Sorry to say but your reasearch is off. There are multiple properties on zillow in the area 1bed 1 bath for close to 500K and up (not much renovation needed) and 2 bed 2bath from 700K upwards based on when it was built and facilities

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