Are owner occupied 3 fams subject to rent control in Newark, NJ?

[Steven Kelts]

Hi There,

We are looking to buy a three family in the North Ironbound area in Newark, NJ.  The person we would buy from currently lives in one of the units - we plan to renovate the property and live in one of the units.  Would the property be subject to rent control?  Is there anything else we should be thinking of? 

[Anthony Marin]

Hi @Steven Kelts

The answer to your question would have been no a month ago BUT the Newark NJ council and Mayor just passed an ordinance that states that owner occupied units and brand new units which were both exempt from rent control are now subject to a 5% rent increase cap every year.  This is controversial because it contradicts state law on the brand new units and looks to be heading to court.  I hope this answers your question but if you would like more details about this and investing in Newark please feel free to contact me as I own a brokerage in the Ironbound.