Rent reform will be all the rage this summer as our elected officials will crow (now that tenants have the upper hand) about dealing with landlords.

Yes, it is true. Now, landlords will have to find “new and innovative ways” to make money. Now, they can’t just throw you out or take advantage in the change of the Bronx.

Yes, I mean the change! Not demographic, but from generational to transitional. For the last 25 years, the Bronx has become more of a transitional place where people move on. A borough president study from years ago shows that the average person or family is staying in their Bronx apartment for eight years. Thus, this would mean, naturally, that an apartment in the last 25 years has had three natural turnovers.

Now, what about the unnatural? What about when the landlord who is purposely trying to get you out through harassment or by not fixing repairs?

I think it’s safe to say that might have happened at least once in the last 10 years or twice in the last 25 years.

Thus, through natural and unnatural means, an apartment has been flipped at least 5 times in the last 25 years.

Now, get ready for this simple and complicated math.

The average rent Increase in the last 25 years was four percent a year, which is a 100 percent increase in a total of 25 years.

The average rent increase via vacancy decontrol (20 percent per flipped apt x 5 flips) has increased to 100 percent in the last 25 years. Thus, the total landlord increase in the last 25 years was 200 percent.

The average landlord Increase per year is 8 percent, and the average rate of inflation in New York in the last 25 years is four percent. 

Yes, ladies and gentlemen, landlords have doubled their monies over The Rent Guidelines Board, which tries its best to index to inflation.

How? By the financial based (now eliminated) vacancy decontrol bill- an automatic 20 percent increase for fixing up the apartment for the next tenant. In the example above, 5 tenants, at 20 percent a flop is a 100 percent increase, just opening the doors. And in our short term, it was even worse!

Over ten years, if one person moved out of an apartment not due to uncomfortable situations, and 3 people moved out because landlords were making it uncomfortable, the apartment would be flipped 4 times. With rent increases at 20 percent for each flip, that would increase the apartment’s rent by 80 percent. With rent inflation at 3 percent a year for 10 years, the total increase would be 110 percent, making the average cost per year 10.1 percent. 

These are mighty losses for landlords. Yes, they make money in many other ways such as tax credits and deductions, but this situation could produce a landlord backlash.

Please be aware of your rights and liberties as tenants. You can call your local Elected Official or Housing Court and ask them to send you a “Tenant Rights Housing Booklet” for more information. 

Some think this could bring back the Bronx 1970’s again. In minor ways, yes. In major ways, no. The seventies had many issues that we do not have here; however, there will be landlords that will say they can not afford to give you the lovely upkeep that prior tenants have been receiving (for top dollar) for the last 25 years.

Professor Anthony Rivieccio, MBA PFA is the founder and CEO of The Financial Advisors Group, celebrating its 24th year as a fee-only financial planning firm specializing in solving one’s financial problems. Mr. Rivieccio, a recognized financial expert since 1986, has been featured by many national and local media including: Kiplinger’s Personal Finance, The New York Post, News 12 The Bronx, Bloomberg News Radio, BronxNet Television, the Norwood News, The West Side Manhattan Gazette, Labor Press Magazine, Financial Planning Magazine, WINS 1010 Radio, The Bronx News, thisisthebronx.com and The Bronx Chronicle. Mr. Rivieccio is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University. Financial Focus Interactive is now an app and a place where one can: Read, Listen, Watch Talk & Learn about Financial Solutions with like minded people and a live financial advisor. Financial Focus Interactive app can be found on the Google Play Playstore or on or internet app at : www.financialfocus.goodbarber.com . For financial assistance, Anthony can be reached at (347) 575-5045.