Rent regulation: what does the rent pay for?

by Nicole Gelinas |  | NY Torch

The State Assembly has passed a souped-up bill to extend and expand rent regulations. Last week, The Torch presented some numbers on regulated renters’ income.

Today’s short installment:

What does the rent pay for?

It costs $855 each month in operating costs (not including mortgage interest) for a landlord to run a single rent-stabilized apartment built after 1946. The average rent on such an apartment is $1,148.

Of these costs, the biggest items are:

Taxes – $226 (26%)

Labor – $126 (15%)

Maintenance – $109 ($13%)

Fuel – $99 (12%)

Administration – $94 (11%)

Miscellaneous – $77 (9%)

Light / power – $46 (5%)

Water / sewer – $42 (5%)

Insurance – $36 (4%)

Nearly 13 percent of rent-stabilized buildings can’t cover their costs.

Source: 2010 Income & Expense Study, NYC Rent Guidelines Board (landlords and tenants equally represented).

Tomorrow: how long do New Yorkers stay in their apartments?

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