Duke & Duke Commodities Brokers

Specializing in pork bellies. Merry New Year!

[Duke & Duke Commodities Brokers @DukeandDukeCB]

@analass666 @leahfrombklyn Finally, your plan would also require funding. These units could be repaired and offered for rent at no cost to anyone but the user but we chose policy that doesn’t allow that. If government did what you suggest, you’d still need funding for renovations and operating costs.

[Duke & Duke Commodities Brokers @DukeandDukeCB]

@analass666 @leahfrombklyn Seized based on what? They’re private property. Their use is up to the owner. If we want them offered for rent, we should probably stop crafting policy that encourages them to be vacant. Also these are individual units within buildings, not standalone units.

[Duke & Duke Commodities Brokers @DukeandDukeCB]

@MonardaB @leahfrombklyn Maintenance costs are one of the costs that leads to it not making sense to offer these units. If you don’t offer them, less cost there.

These units sit because owners are trying to limit losses, whether they have the funds to do the renovation or not.

[Duke & Duke Commodities Brokers @DukeandDukeCB]

@manamanaoooooo @leahfrombklyn Leaving the unit vacant is going to cost them $500-600/mo because they can’t escape costs like taxes and insurance, but letting it sit and taking that smaller loss is why so many sit.

That those are the options are why the legal challenges make perfect sense.

[Duke & Duke Commodities Brokers @DukeandDukeCB]

@manamanaoooooo @leahfrombklyn For that $1k/mo unit that comes open but needs $100k in repairs and code updates (commonly more than that for a long occupied unit), you’re looking at a new rent of $1166/mo with average operating costs of $1400/mo/unit PLUS $800/mo for the reno. That’s a LOSS of $1134/mo.

[Duke & Duke Commodities Brokers @DukeandDukeCB]

@dcredtail @PlasticWig @RepRichardDodge @leahfrombklyn I think Chopped would rather remain ignorant about that.

[Duke & Duke Commodities Brokers @DukeandDukeCB]

@manamanaoooooo @leahfrombklyn If they could do what you suggest, they would. Some rent stabilized units are so unprofitable that their best move is to take the $6-8k/yr loss rather than dump more money into it. Thats what the 57,000 vacant units is about.

[Duke & Duke Commodities Brokers @DukeandDukeCB]

@JBKSchlossberg @MicahLasher @AlexBores @tonysimone NYCHA should be phased out.

[Duke & Duke Commodities Brokers @DukeandDukeCB]

@RepRichardDodge @PlasticWig @leahfrombklyn Apparently.

[Duke & Duke Commodities Brokers @DukeandDukeCB]

@AllIsFreeForMe @PlasticWig @leahfrombklyn 100% agree.

It’s a product of rent control/stabilization but more specifically vacancy control. Thankfully there’s a challenge to vacancy control starting its way through the courts. Will be interesting to see how many landlords wait for that result before offering vacant units.

[Duke & Duke Commodities Brokers @DukeandDukeCB]

@PlasticWig @leahfrombklyn They’d in almost every case be happy to rent them out if it made sense to do so, but who is going to spend $100k+ to renovate these units so they can collect $1200/mo rent with $1400/mo operating costs even after the $100k+ is spent? Nobody is doing that. So the units sit.

[Duke & Duke Commodities Brokers @DukeandDukeCB]

@PlasticWig @leahfrombklyn You’re clearly not understanding what we’re talking about.

These are rent stabilized units with tightly restricted rents. The rents haven’t been allowed to keep up with inflation and have trailed cost growth by an even bigger margin. Their rents haven’t skyrocketed in any sense.

[Duke & Duke Commodities Brokers @DukeandDukeCB]

@PlasticWig @leahfrombklyn It means taking a smaller loss rather than taking a bigger one. Not sure how it’s greedy to minimize a loss, especially when you may not have the cash available to even opt for the bigger one and lenders aren’t lending to these buildings because the threat of default is too high.

[Duke & Duke Commodities Brokers @DukeandDukeCB]

@claireforny What’s the plan when that taking brings down rent controls through the courts?

[Duke & Duke Commodities Brokers @DukeandDukeCB]

@KennyBurgosNY @Cat_Victim So even after the renovation, the owner loses money every month on operating costs alone based on the average of $1400/mo.

[Duke & Duke Commodities Brokers @DukeandDukeCB]

@aviboman6 @jaymart222 @DGisSERIOUS You’re probably thinking of newer units. The data above reflects the warehousing of older rent stabilized units that don’t receive those tax benefits and are leaving the market by the thousands because the restricted rents don’t justify the cost to offer them.

[Duke & Duke Commodities Brokers @DukeandDukeCB]

@MatchewRolex @jamfan40 So they shouldn’t have bought the land and tried to work out an acceptable deal to stay in Illinois?

[Duke & Duke Commodities Brokers @DukeandDukeCB]

@leahfrombklyn It’s not a matter of not making “as much money as they’d like”. Landlords won’t take a loss of several hundred dollars monthly on each and every one of these units unless it’s their best move. When rent controls make vacancy less of a loss than offering units, this is the result.