Protect your bottom line: Can’t raise rents, then control your costs
Project volume has gone down in NYC since the Rent Stabilized laws went into effect but costs are up 29%
It’s been 7 months since New York’s rent control laws went into effect. While things play out in federal court, we’re seeing some of the impact landlords expected with significant deal flow on building transactions and new building declines across the board. You can see here how the first two quarters in 2019 resulted with their rate of declines compared to the same period in 2018 listed above the bar:
While a lot of attention has been paid to the decline in deal flow, not much has focused on the effect this law has had by curtailing reimbursements for renovations. As expected, project volume has decreased since the new law went into effect. However, the average cost has ballooned. The number of job filings decreased 34% in the first 6 months after the rent laws were passed compared to the same time period last year, but the average cost for job filings jumped 29%.
Doing less work doesn’t mean spending less money:
So while the opportunity and upside shrink, costs continue to grow. You may not be able to charge more for renovations but you’re still stuck with them. How do you deal with a market like this? You take control of your spend and that’s where Astorian comes in.
Contractors are not like your favorite bartenders who give you a free drink every now and then — when you get too comfortable and stop keeping vendors honest with competitive bidding, you pay for it. And even when you have great vendors, why slow yourself down with emails, faxing, and phone calls? Astorian gives you a clear image over what your options are and a place to keep all your projects under control.
On average, owners and managers get bids that are 20% lower than what they would’ve paid someone they know, and even if you don’t go with the lowest bid you’ll have the leverage you need to negotiate a better price from who you want.
Protect your bottom line with Astorian:
- Lower your costs 20% with more options
- Speed up your processes 5x
- Keep records organized to prove the work you’ve done
Astorian saves time and money
In a market like this, the smart players are keeping costs down,adding value while their competitors bleed. Don’t wait and wish you had better options, get started and take control today.
