West New Yrok, NJ Rent Control Questions

[Thomas Young]

Hi,

So I recently sold my first real estate investment and made a nice profit. I am looking into possibly purchasing a small apartment building (5-8 units) in the West New York, NJ area. A lot of the rent rolls I have seen have some tenants at very very low rents. Based on this I am assuming there is some level of rent control in the town. Is there anyone who can provide some information on this and how it works? I tried reading the town codes myself, but it is difficult to translate it to simple terms. Just looking to see what the laws are and what exactly stops you from just letting a lease expire and getting a new tenant in. Any information is appreciated. 

Thanks, 

[Jason Lee]

Look up the town codes and find "establishment of rent control; exemptions." 5 units and above fall under RC. 4 and under could be exempt if you owner occupy. You'll be limited in the rent increases after a tenant vacates. You could possibly get an exemption if you gut renovate when a tenant vacates. I would call the town rent control board to ask specifics. Most of Hudson County has very strict RC laws. Union City for example, has gotten even more strict in the past year.