Friday, February 02, 2007

Evition settlements - that means money

People in New York frequently receive a "buy-out" from the landlord to move out.

I found that it's very common for landlords and tenants to settle their eviction cases, most commonly quite high amounts. Of course the landlord eventually makes it all back, once the apartment is rented for two, three or four times what it was before. Settlements go from a paltry $5000, usually what a tenant accepts by himself, hithout getting a landlord, up the $70,000 or $150,000, in which case there are always lawyers negotiating.

It seems that it's not too easy to negotiate these - if the landlord thinks the person is just moving anyway, he will just wait and see if they do.

I'm not sure exactly what leads these cases into settlements - seems that it's mostly to end the trials and the waiting and uncertainty. I do see what motivates the landlord to pay this money - making more money later.

The rental market is high. An apt renting now for $1000 often could get $3000 at "market" values. Many things need to happen for a landlord to get that, but the first step is always the same - the tenant has to leave.

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