Rent Stabilization Due Diligence For Multi-Family Acquisitions
- If a building has tenants, those tenants are vital to the building’s future -- either because the tenants are the building’s source of revenue that needs to be maximized or because the tenants must be relocated for the building’s future. Therefore, you should consider hiring Itkowitz PLLC to perform rent regulatory due diligence.
- You hire an engineer to make sure that the building is not going to fall down. However, a multi-family building is so much more than bricks and mortar. Indeed, we can look at a building and see it in a way that an engineer, architect or transactional lawyer cannot – we see the tenancies at the heart of the building and any problems that come with them.
- We charge a very low FLAT rate for this service. You are provided with a lengthy and understandable report -- see sample. The process is also interactive. We help you form a plan for the building’s future.
- We refer to the process as “Due Diligence”, but we can perform the analysis before a contract is entered into, during a due diligence period, or after a property is purchased. We have performed this service for purchasers, sellers, owners, and lenders.
- Via the Rent Stabilization Due Diligence Process, this is just some of what we examine:
- We look for anything about the building or the tenancies that would stymie legal action, should it be necessary.
- We look for overcharges, and compute liability therefor and the likelihood of treble damages.
- We look for any vulnerability in the Rent Stabilized tenancies – in the leasing or at DHCR.
- We look for vulnerabilities in allegedly Free Market tenancies, which very well might manifest as Rent Stabilized (there is a big trend for re-regulation with J-51, Altman, Grimm etc.)
- every building is different and every owner has different goals – so we look at whatever you need – preferential rents, the ability to evict supers, your liability for painting, etc.
Read more about Rent Stabilization Due Diligence For Multi-Family Acquisitions in our booklet on the topic