We’re looking a deal in New York State. The current owner is paying for 100% of the water costs. We’re looking at sub-metering the water. My question is this… is sub-metering water or charging for other utilities (i.e. trash) considered a rent increase in NY?
NY has a 3% cap on annual rent increases under its rent control laws, so we’re trying to figure out if passing through utility costs is considered a “rent increase”.
Thanks!
You should ask a lawyer and reference the following section of 233-B.
Section 233-B Manufactured home parks; rent increases
Real Property (RPP)
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The provisions of this section shall apply to all manufactured homes located in a manufactured home park as defined in section two hundred thirty-three of this article, however manufactured homes located in manufactured home parks that are subject to a regulatory agreement with a governmental entity to preserve affordable housing or that otherwise limits rent increases are exempt from the provisions of this section.
Increases in rent shall not exceed a three percent increase above the rent since the current rent became effective. In this section, rent shall mean all costs, including all rent, fees, charges, assessments, and utilities. Notwithstanding the above, a manufactured home park owner is permitted to increase the rent in excess of three percent above the rent since the current rent became effective, due to:
(a) Increases in the manufactured home park owner’s operating expenses.
(b) Increases in the manufactured home park owner’s property taxes on such park.
© Increases in costs which are directly related to capital improvements in the park.
Thank you, Ippo! Appreciate the guidance.