How do you know if a building is rent-controlled?
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How do you know if a building is rent-controlled?
I am a new potential apartment building owner. It is occupied but I am buying it out of bankruptcy. Does this effect the rent-control laws?
Asked on August 1, 2011 District of Columbia
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
If you are buying an apartment building from a bankruptcy estate and want to know if the building is subject to rent control, you need to contact the bankruptcy trustee to ask that question and ask to see copies of all leases and the payment history for the building. From the written leases, you can determine if monthly rental is below market rate and if so, the building is probably subject to rent control.
You should also hire a real estate agent or an attorney to contact any governmental enity in the city/town where the building you are interested in buying is located to ask if it is subject to rent control. Most municipalities that have rent control have agencies in charge of enforcing its provisions. If the municipality where the unit you wish to purchase has rent control, go down to the agency in charge of enforcing rent control to see if the building is subject to its provisions and is registered.
You need to undertake your own due diligence to make an informed decsion in making an offer to purchase the building. Buying the building in a bankruptcy does not take it out of rent control restrictions ofit is subject to rent control.
Good luck.
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