All Forum Posts by: Dennis Gallof

Quote from @Nathan Gesner:

Quote from @Dennis Gallof:

You can do anything you want, but that doesn't make it legal and it exposes you to risk. Occupants need a means to escape in an emergency. If you don't have a means of escape and someone is injured or killed, things will get ugly. Are you willing to risk someone's life, your finances, and possibly more to earn a few more bucks?

The right thing to do is to speak with a contractor and make the necessary changes to convert the basement into a legal residence. Doing the right thing is expensive, but it pays off in the end.

Yes, this is the option I initially explored and came across this pilot program that NYC was offering specifically to help homeowners legalize basement/cellar apartments but it seems like the pilot program was not much of a success. With 100 homeowners who received a cost estimate only
5 remained in the program due to costs of a single conversion climbing up to $1M...it's just not worth it.

https://citylimits.org/2023/03/13/in...about-cellars/

If there was something in place that was more affordable, I'm sure more homeowners would be willing to take this route, myself included, to meet the city standards.

Quote from @Kevin Paulk:

@Dennis Gallof

In addition to the safety concerns ....Good luck trying to evict a non paying tenant in an illegal apartment. 

Yes, it could be challenging but not impossible; I came across this link where it looks like I would have to start a "holdover proceeding" with the court.

https://www.avvo.com/legal-answers/can-you-sue-your-landlord...

Quote from @Kevin Sobilo:

@Dennis Gallof, it sounds like you are looking for legal loopholes to liability risks and I am not imagining there will be many options there.

For example, if your property is owned by an LLC meant to protect your personal assets that could become moot because you are purposefully and knowingly choosing to operate in an illegal manner. So, if someone dies in a fire in a basement unit without proper egress, not only could your LLC's assets be at risk but also your personal assets because the LLC may not protect them in that case.

I might look to practical things that can be done to mitigate those risks such as adding a sprinkler system to that basement unit or something like that. Identify the actual risks and take real action not legal finagling.

Thank you for your reply!

Yes, you make good points.  I need to take steps to make sure the apartment is as well maintained and upmost safe for anyone living there.  My previous tenant lived there 20+ years with no issues but that's not to say something as, worst case scenario, dying can't happen in the future.

There are full size windows along the side of the building and also 2 separate entrances.  In the back, that leads you to the kitchen and through the main entrance that has stairs that enter the other side of the apartment.

Quote from @Account Closed:

Quote from @Dennis Gallof:

Hi,

I know what I'm asking is not legal, but it also doesn't stop the 30,000+ not legal apartments that currently provide a home for families in Queens, NYC that would otherwise not be able to afford to live there.

I'm just trying to see, as a landlord, are there certain steps I can take to reduce any potential risks I could face for renting out the apartment? Should I have a lease agreement in place with the tenant? Is there certain verbiage I could include in the lease or another written document I should have in place? Etc.?

The building was built prior to 1938, so there is no certificate of occupancy issued; not sure if that helps me at all.

Thank you.

For sure have a rental agreement. A bedroom requires ingress & egress. That means a way in and a way out. If there was a fire and the stairs were blocked, they need a window or other door they can escape through. If someone dies in a fire or flood in an unapproved basement, it is possible to be charged with a crime. I'm not saying that would happen necessarily, but just be aware.

If the space runs cold in the winter or hot in the summer, you can have a bit of a problem with heating/cooling along with complaints. If the tenant reports to the city that the space isn't properly vented/heated/cooled or the right color (just joking on that one) you will probably end up with a visit from an inspector.

Thank you for the helpful reply!

From my research online, I've read that having a rental/lease agreement would not be binding because it would be for an apartment that's not legal...is that not the case and I should still have a rental/lease agreement in place?

Yes, the driveway slopes down; so as you walk further towards the back there are full-size windows on the side of the building where the bedroom and kitchen are. Then there is an entrance from the back that leads you into the kitchen, plus you can enter from the main entrance in the front that has stairs that lead you to the other end of the apartment.

Yes, you make valid points; it might never happen but you never know what could happen in the future, so it's something I also need to think about.

My previous tenant that was living there, was there for 20+ years and never had a complaint about the heating/cooling with her; so hopefully this continues with the next tenant.  She was a great tenant but moved out of state, I wish to be able to find another tenant that was just like her.

Hi,

I know what I'm asking is not legal, but it also doesn't stop the 30,000+ not legal apartments that currently provide a home for families in Queens, NYC that would otherwise not be able to afford to live there.

I'm just trying to see, as a landlord, are there certain steps I can take to reduce any potential risks I could face for renting out the apartment? Should I have a lease agreement in place with the tenant? Is there certain verbiage I could include in the lease or another written document I should have in place? Etc.?

The building was built prior to 1938, so there is no certificate of occupancy issued; not sure if that helps me at all.

Thank you.

Quote from @Abel Curiel:

Quote from @Dennis Gallof:

Hi,

My father purchased this 2-family house (R5 Zone) back in 1976 in Astoria Queens, and just like many other landlords in NYC he rents out the cellar/basement.

I've been reading online the definition between a basement and cellar based on the link below, and I think my father's falls under a cellar. Even though the property slopes down and on the side of the building there are full size windows going all the way back, and then windows and separate entrance from the back. You can also access this apartment from the main entrance that has stairs going down to the apt; so it has a front and back entrance.

https://www.nyc.gov/site/hpd/services-and-information/basement-and-cellar.page

My father is getting older and he just doesn't want to deal with the house anymore, and will be passing it down to me. The house is paid off, and I'm trying to see what my best option is to do with it.

I would like to do a full gut renovation on all 3 apartments, but I would like to be able to see if it's possible to convert the cellar to be a legal apartment and get a CO that states "multi-dwelling" instead of "2-family".

Does anyone have any experience with this? Would reaching out to a real estate lawyer or architect be better to see if it's possible to convert to a legal apt?

I came across this article and it seems like there is a push for this and to make basement/cellar apartments legal but still hasn't happened. It looks like they launched a pilot program in 2019 but costing homeowners up to $1M to do the conversion.

https://citylimits.org/2023/03/13/in-new-yorks-fight-to-legalize-basement-apartments-what-about-cellars/

I don't want to end up selling the place because it is good cash flow and would be even better once I renovate all the apartments.

Thank you.

Hello Dennis!

The pilot program didn't play out too well although the concept is great. The program had a very small sample size as there weren't many participants + as you mentioned, renovation/conversion costs were extremely high for landlords.

For your question, an architect would be a great contact. I can recommend a local architectural/engineering firm (previous office was on 36st in Astoria) that is very experienced, knowledgeable and professional.

All the best to you & your dad on this next chapter!

Abel 

Yes, that would be great...can you send me contact information. Ty.

Hi,

My father purchased this 2-family house (R5 Zone) back in 1976 in Astoria Queens, and just like many other landlords in NYC he rents out the cellar/basement.

I've been reading online the definition between a basement and cellar based on the link below, and I think my father's falls under a cellar. Even though the property slopes down and on the side of the building there are full size windows going all the way back, and then windows and separate entrance from the back. You can also access this apartment from the main entrance that has stairs going down to the apt; so it has a front and back entrance.

https://www.nyc.gov/site/hpd/services-and-information/basement-and-cellar.page

My father is getting older and he just doesn't want to deal with the house anymore, and will be passing it down to me. The house is paid off, and I'm trying to see what my best option is to do with it.

I would like to do a full gut renovation on all 3 apartments, but I would like to be able to see if it's possible to convert the cellar to be a legal apartment and get a CO that states "multi-dwelling" instead of "2-family".

Does anyone have any experience with this? Would reaching out to a real estate lawyer or architect be better to see if it's possible to convert to a legal apt?

I came across this article and it seems like there is a push for this and to make basement/cellar apartments legal but still hasn't happened. It looks like they launched a pilot program in 2019 but costing homeowners up to $1M to do the conversion.

https://citylimits.org/2023/03/13/in-new-yorks-fight-to-legalize-basement-apartments-what-about-cellars/

I don't want to end up selling the place because it is good cash flow and would be even better once I renovate all the apartments.

Thank you.

@Chad Hale Thanks for the reply!  Yes, I came across some vacation rental agreement templates and I see they have all costs listed and broken out like you mentioned; so I'll follow something similar to this.

My condo unit is in Miami, FL (Miami-Dade County) and it seem like anything less than 6 months is considered TOT.  It's a pain because I lose out on rentals that are less than 6 months because people don't want to pay these TOT taxes.  It makes so much more sense if it was applied to 30 days or less rentals.

Thank you!

Hi,

I have a condo unit in Miami and I know if I get a rental through Airbnb/VRBO they collect this "transient tax" (short term rental tax) on my behalf. However, now I got a rental for less than 6 months, so I have to collect/report "transient tax" on my own to the city of Miami.

My question is, do I need to list the total "transient tax" amount within my lease agreement? Or would I just list the monthly lease amount on the lease agreement, along with, security deposit amount only? Or should I write a clause in the lease agreement stating that 13% tax will be collected from the total lease agreement that will be paid to the city of Miami?

Also, should I collect the total "transient tax" amount upfront? Or just collect it with each monthly rental payment? My tenant is looking to stay for a 4 month lease.

Thank you!

Just following up with this post...thank you!