"Tenants are moving more often because under the FARE Act, they don't have to pay a fee to the owner's broker. This has made it less expensive for tenants to switch apartments, increasing costs for landlords."
"A vacancy rate of 7 or 8 percent is good for housing markets and apartment hunters but bad for landlords. Each vacancy costs an owner thousands of dollars."
Tenants are increasingly moving out of rent-stabilized apartments, making it challenging for landlords to fill vacancies. The FARE Act has contributed to this trend by eliminating broker fees for tenants, allowing them to switch apartments more easily. Landlords are facing higher vacancy rates, which can lead to significant financial losses. Feedback from prospective tenants indicates they have multiple options, leading to longer vacancy periods. Rent stabilization still offers benefits like below-inflation increases and automatic renewals, but the current market dynamics are shifting tenant behavior.
Read at therealdeal.com
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