Tag Archives: SRO

361 West 116 street in contract

361 West 116th, an SRO building sold occupied without the certificate of no harassment has entered contract. The last asking price was $1,699,000 for this South Harlem townhouse. It had a renovated ground and 1st floor and 4 total bathrooms.

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every neighborhood from Battery Park City to Washington Heights.

Thinking of selling your Manhattan SRO-apply for CNH now

If you are thinking about selling your Manhattan single room occupancy(SRO), now is the time to apply for the certificate of no harassment. Changes are coming starting to the application process,in September. Suffice is to say that the City is expanding the program to encompass areas where tenants are susceptible to harassment in rapidly gentrifying areas like West Harlem, East Harlem and several parts of the Bronx. The new program will have a 5 year look back and will not just be for SROs but will include as well properties with a history of proven harassment as well as an expanded set of buildings in the pilot areas.

Continue reading Thinking of selling your Manhattan SRO-apply for CNH now

What to do now to prepare for a sale in a year of your Harlem SRO

Please note that the below is not legal advice or meant to substitute for it. Always consult with your attorney when dealing with matters of eviction, rent stabilization etc…

If you have some time before you are going to sell your Harlem SRO, there are several things that you can do to better position your property in the market to get the most money and with the least stress later. Here is my checklist.

1-Apply for a certificate of no harassment  (CNH)
2-Relocate or encourage the tenants to relocate especially tenants that are not paying.
3-Overall maintain a great relationship with the tenants
4- Make sure all services like heat and hot water are always provided and repairs are done swiftly
5- Minimize DOB,HPD violations

1-The CNH process takes anywhere from 5-7 months so in order to not delay your closing later, apply for it in advance. For more on why it’s important read this previous post.

2- Since the next owner will likely want to alter the building to a 1-2 family, their plans will be delayed by tenants that still remain. As a result, the majority of buyers except the most savy will steer clear of occupied SROs. Tread lightly here because you can not do anything that would be considered harassment. If a tenant is not paying, you need to get an attorney and do an eviction asap. I have seen many cases where the tenants who do not pay rent are the ones who want the most money to be bought out of their apartments. So if a tenant is not paying, stay on top of it. Other tenants may leave on their own or be bought out. Just be careful if word spreads to other tenants that are buying tenants out, prices tend to ramp up. Also consult with an attorney as an SRO probably will fall under rent stabilization laws so tenants are entitled to renewal leases and the rents should be registered with DHCR.

3&4- Keep in mind that in order to obtain a CNH, HPD will ask the tenants both past and present within a 3 year look back for evidence of harassment. So while landlord-tenant relationships can get strained at times, always maintain a good relationship with your tenants. Also, move quickly to perform any repairs and you must maintain all basic services like heat, hot water and electricity within the building. Failing to provide basic services is a red flag of harassment.

5- Make sure to register your building and address any violations that you have on the building. It is easier to address issues little by little then let violations accumulate along with fines and penalties.

In most cases when I am called in to list and sell a Harlem SRO, there are many things we can address and a few that we should. However, if you have some lead time, things can get done in advance and we can get you the most money with the least amount of stress as a result of a little proper planning.

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every neighborhood from Battery Park City to Washington Heights.

 

 

Thinking of selling your Harlem SRO townhouse?

SROs or single room occupancies have a wide range of value in Harlem.  SROs are typically set up as rooming houses where there might be several rooms per floor with a common bathroom or kitchen. The most valuable SRO will have a certificate of no harassment and be delivered vacant. The least valuable will have non-paying tenants and be delivered without the CONH. What is a CONH and why would having it add at least $100k to the value of your SRO?

A CONH is granted after an investigation or look back by NYC’s Housing Preservation and Development of approximately 3 years. They are looking at your history of tenants to see if any tenants were forced out or harassed. Some of the questions on the application ask if you have had a discontinuation of service like heat, hot water or electricity, a potential sign that the tenants might have left due to poor living conditions. It takes approximately 7 months according to reps at HPD to get a CONH assuming the application is in order. You can have an experienced lawyer do this for you and they will charge $3k-$5k depending on how complicated the case is. So if you have some advance notice you might want to apply for this prior to putting your house on the market. If you are a DIY’er then you can fill in the application yourself and can visit the HPD during the week between 9-11am with your walk in questions. Make sure your property is registered with HPD. The CONH is valuable because the purchaser of your property will not be granted building permits to alter the SRO without a CONH. Also, while it may be difficult for you to come up with the names of all the tenants who lived in the property, it is impossible for the buyer so in some cases they may even just decide to sit on the house for 3 years before applying for the CONH. For that, they will expect a severe discount.

Certificate of no harassment application

As you are arranging your future plans to sell, you will want to maintain an excellent relationship with your tenants so they vouch for you if contacted by the City. Also, if they are not a rent stabilized tenant then you might not want to renew their lease which will give you the option to ask them to vacate with a 30 day notice. If you can get by without the income, vacating the house just prior to listing will make it easier to show and sell, but certainly ethically empty out the house prior to closing. If the tenants are rent stabilized then you may need to offer them a buyout or leave that up to the next purchaser. If you must deliver the house occupied make sure that your tenants are current. A building full of non-paying tenants will be only taken on by investors if the price is very low.

As this sale is a complicated one, you will need a team to insure the most lucrative sale including an experienced and knowledgeable real estate broker, a real estate attorney plus perhaps even an architect or expediter. Even though it may seems like a burdensome effort, it will be worth it in the end especially if you know that you have lead time. If you have even only a few months before you will sell, it makes a lot of sense to plan ahead and get a CONH and get the house vacant for closing.

The Author-  Brian Silvestry , a licensed real estate broker, has been selling SROs and Harlem townhouses for more than 12 years and has helped owners to apply and obtain the certificate of no harassment.

Thinking of selling your Harlem SRO?

SROs or single room occupancies have a wide range of value in Harlem.  SROs are typically set up as rooming houses where there might be several rooms per floor with a common bathroom or kitchen. The most valuable SRO will have a certificate of no harassment and be delivered vacant. The least valuable will have non-paying tenants and be delivered without the CONH. What is a CONH and why would having it add at least $100k to the value of your SRO?

A CONH is granted after an investigation or look back by NYC’s Housing Preservation and Development of approximately 3 years. They are looking at your history of tenants to see if any tenants were forced out or harassed. Some of the questions on the application ask if you have had a discontinuation of service like heat, hot water or electricity, a potential sign that the tenants might have left due to poor living conditions. It takes approximately 7 months according to reps at HPD to get a CONH assuming the application is in order. You can have an experienced lawyer do this for you and they will charge $3k-$5k depending on how complicated the case is. So if you have some advance notice you might want to apply for this prior to putting your house on the market. If you are a DIY’er then you can fill in the application yourself and can visit the HPD during the week between 9-11am with your walk in questions. Make sure your property is registered with HPD. The CONH is valuable because the purchaser of your property will not be granted building permits to alter the SRO without a CONH. Also, while it may be difficult for you to come up with the names of all the tenants who lived in the property, it is impossible for the buyer so in some cases they may even just decide to sit on the house for 3 years before applying for the CONH. For that, they will expect a severe discount.

Certificate of no harassment application

As you are arranging your future plans to sell, you will want to maintain an excellent relationship with your tenants so they vouch for you if contacted by the City. Also, if they are not a rent stabilized tenant then you might not want to renew their lease which will give you the option to ask them to vacate with a 30 day notice. If you can get by without the income, vacating the house just prior to listing will make it easier to show and sell, but certainly ethically empty out the house prior to closing. If the tenants are rent stabilized then you may need to offer them a buyout or leave that up to the next purchaser. If you must deliver the house occupied make sure that your tenants are current. A building full of non-paying tenants will be only taken on by investors if the price is very low.

As this sale is a complicated one, you will need a team to insure the most lucrative sale including an experienced and knowledgeable real estate broker, a real estate attorney plus perhaps even an architect or expediter. Even though it may seems like a burdensome effort, it will be worth it in the end especially if you know that you have lead time. If you have even only a few months before you will sell, it makes a lot of sense to plan ahead and get a CONH and get the house vacant for closing.

SRO in Central Harlem remains an SRO

The SRO at 2299 Adam Clayton Powell Jr blvd is remaining an SRO. The owners bought the property for $1.4 million and then spent approximately $500k renovating and kept it as an SRO. The building contains a mix of rent stabilized tenants and renovated SRO rooms which will be rented out for as much as $1500 per month.

An SRO is a single room occupancy and typically has a layout of 2-4 rooms per floor with shared bathroom and kitchen. Layouts vary. When someone purchases an SRO they either receive a certificate of no harassment or apply for one if they would like to convert the building to another use like a 1 family. In cases where the building is occupied, some savy investors will continue to operate the building as an SRO sometimes waiting for tenants to move out or paying them to leave.

In the case of this property in Central Harlem, the owner kept it as an SRO and renovated the vacant units. Read the full article below and see an SRO for sale example. The SRO is a property that I am representng the owner. It is a vacant SRO sold without the certificate of no harassment. The asking price is $1,550,000.

LINK

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