A plugged-in reader reports and we excerpt (and slightly edit):
I live in a 33 unit former [CitiApartments] property that is in receivership and is managed by a non-Citi (now dba First) management company.
In the months before receivership started in 9/09, any tenant who asked was given a significant rent reduction from Citi if they signed a year lease and paid an additional month’s rent in advance. There were only a couple tenants who didn’t ask and receive. An example: a lovely $1,500/month studio rent was reduced to $1,150. New pre-foreclosure tenants were getting the same lower monthly rent rates if they paid an additional month’s rent at the time of lease commencement.
Those pre-receivership reduced rents are now the rent controlled rents. The receivership property management company is currently renting the apartments at the lower rate too. Rather than holding out for higher rents, the receivership property management company is renting turnover apartments at rates that would make any new purchaser/investor cringe just to keep the building fully rented.
[The Department of Building Inspection] is forcing the new property management company to rectify the non-permitted and not to code ‘renovations’ that Citi performed in this building over the years which will total hundreds of thousands of dollars…[and] a decade of dealing with CitiApartments has filled the building with experienced, knowledgeable, empowered, and angry tenants who won’t take crap from a landlord and know how to protect themselves.
We’ll say it’s something to consider for buyers and renters alike.
∙ Lemons To Lemons For Thirty Ex-Lembi Apartment Buildings [SocketSite]
∙ CitiApartments Is No More! Well, Sort Of… [SocketSite]
∙ The Story (And Faces) Behind The Rise And Fall Of The Lembis [SocketSite]
∙ The Chronicle Reports “Dozens,” A Plugged-In Source Says Over 100 [SocketSite]