NYC RENTAL SCAMS ALERT! “Affordable Equity Project” & “Super Low Rentals” – be aware this rental season!

by alicia on April 30, 2012

NYC RENTAL SCAMS

YOU SHOULD NEVER GIVE ANY MONIES WITHOUT SEEING THE APARTMENT IN PERSON! IF IT IS TO GOOD TO BE TRUE IT ALWAYS, ALWAYS IS!!

Scam

Super Low Rentals Scam AKA Affordable Equity Project

I originally wrote the article posted below two years ago regarding “The Affordable Equity Project.” They are a fake company that preys on desparate renters to submit $40.00-$50.00 as a general application fee or credit check and then they never have any intention of showing you the apartment.

Super Low Rentals Scam (SuperLowRentals.com)

This website has been complained about many times with the Better Business Bureau so now they have started a new website called SuperLowRentals.com. Please, please read below before you ever considering giving money to a company before you have seen the apartment.

The Affordable Equity Project Scam (EquityProject.net)

I have been emailed and contacted more about the Affordable Equity Project (AEP) than any other topic as the director of HowToRentInNYC.com. The Affordable Equity Project lists several very below market priced apartments on their website and then instructs users to send $40.00 for a processing fee and that credit scores and income do not matter.

The Affordable Equity Project Website:

“The Affordable Equity Project is a company that was founded with one goal in mind, to connect affordable housing with the responsible people who need it most. We believe every person on earth who needs and wants housing should be able to get it at an affordable rental price. Affordable Housing should not be a privilege, it should be a right.”

Many people have contacted me letting me know they think it is a straight scam charging people $40.00 for application fees for apartments they think never existed. I allow people to write reviews of their experiences with landlords on my website and there have been exactly 35 negative reviews of their service and 3 positive for an average rating of 1.4 out of 5. Many people claim the three positive reviews were in fact “planted” by AEP themselves and found errors within their messages.

Most recently I was contacted by a Columbia journalism student and a person who used the service (who will remain anonymous) with detailed information on their experiences. I feel it is my duty to report this to the general New York City rental community because of this information that has been brought to me. I have been contacted as well by the Affordable Equity Project with requests to take down all the negative reviews, but when I asked for legitimate referrals or information I never heard back from them. I still welcome the Affordable Equity Project to contact me with concrete information about people they have helped as well as directly respond to the postings from the people below.

MY BOTTOM LINE: With over 30 negative, detailed reviews, negative standing with the Better Business Bureau and their lack of response to my own requests, I do believe the Affordable Equity Project is a well run scam. For the sake of argument even if an apartment exists for $1000.00 in Union Square- companies should NEVER accept an application unless the apartment is genuinely vacant. Reading through the reviews there were at least five applicants for one apartment. This should never be the case unless each one of them was contacted with reasons for being rejected and then they can accept the next applicants $40.00 for processing. A company cannot collect 5 or my guess about 50 applicants and $40.00 per application – process all of them and then “pick” the best applicant. Regardless, not one of these people allegedly even saw the apartment, they did blindly send the money in the desperate hopes of being the first to get it. Please read below for further information.

FROM ANONYMOUS: (a personal story in using the Affordable Equity Project service)
“I was really desperate to find something without paying a brokers’s fee, and when I saw their very professional looking website (www.equityproject.net), it gave me hope. I did not immediately send in money, as they only have listings available every few months. But they offer to send you an email once new properties become available, so I signed up.
When an email came in my box one day, and it happened to be in a neighborhood I was looking to live in, I jumped on it without much thought. I did call the office to ask a few questions, but the woman was reassuring and she said that they showed people the apt. based on who got the application in first. So I ran to the bank and got a money order, and sent it in that day. But then, after the first buzz of possibility wore off, I started questioning it further and started researching them online.

Here’s what I found:

  • They claim on their website that they are listed “in good standing” with the Better Business Bureau. This is misleading, as it makes it sound like the BBB is holding them to some standard. They are not members, nor are they accredited. Anyone can be listed, but there is no such thing as being listed in good standing. In fact, according to the BBB, out of 24 known complaints, only 2 complaints were resolved to the satisfaction of the consumer, and 6 were partially resolved. That is hardly a track record to brag about, or interpretable as in “good standing”.
  • I googled the company again, looking more closely this time, and this time I noticed that all of the “articles” about the company were put forth by the same person, Ron or Ray Subs, and always the same spiel, and on websites where there were no comments allowed.
  • I looked again at their website, and noticed that the FAQ’s all sounded kind of false and similar in tone. I also remarked that in the year I have been going to their website, they NEVER have any office space or condo listings, and that it seemed very strange in their FAQs, they say that there is no limit to how much someone makes to qualify for one of their low price apartments. It seemed to go against their mission to provide affordable housing to people who were struggling to find it, esp. since they only offer a few apartments every few months.

So, this was just a day later… I called them and asked them to withdraw my application when it arrived, and that I wanted to be notified when this was done. I got the biggest run-around. For weeks, I called and emailed every day, as I really could not afford to throw away $40. But calling so frequently and so doggedly made me see other things about how they run. Probably most people were not so determined as me, and just gave up their money. But I kept calling every day. One of the things I noticed was that it was always the same two voices. One was a man (“Dusty”), the other a woman. The woman’s voice in particular was very distinctive, kind of high pitched and nasal, and she sounded very smooth in a corporate customer service kind of way. Anyway, I always knew it was the same person, and so I started asking, “Who am I speaking with?” And then it became really comical, because each time she responded with a different name. I started writing them down after a while, and got Wendy, Holly, Sue, and Christy, all with the exact same voice. Each time, she had no idea how to answer my questions, but always said she would have someone email me and always with the same friendly voice. I asked to be called and she said okay, but no one ever did. I did get many email form letters, saying that they had received my concern, and would get back to me. I kept calling, and then I got a more personal email asking when I sent in my application. I responded, and then received an email saying he, “John Henderson”, would look into the matter. We went through a few rounds/repetitions of this, and then I finally said that I was reporting them as fraudulent and I was really upset about the run-around. To that, I got a final email saying,

“We will look into this for you, if a refund is warranted, then please allow up to 6 to 8 weeks for it to be processed for you. But please understand that our normal policy is that the processing fee is normally non-refundable. I hope this helps, if you have any other questions, then feel free to email us back.”

When I asked on what criteria they judged if a refund is warranted, there was no response, nor to any subsequent emails or inquiries.

FROM JOURNALISM STUDENT AT COLUMBIA

  • The Affordable Equity project communicates only by email. If you call the number on the website, someone at a call center will answer. He/she will take a message, which will be returned with an email usually from “Jon Henderson.” (Come on…) He/she at the call center doesn’t know (or pretends not to know) anything about AEP.
  • The company that designed the web site refused to give me any information about the people they dealt with while building the AEP website. They also answered my calls with emails and used first names only.
  • The people on the testimonials part of the web site do not exist. (That page hasn’t been updated in a year and a half by the way.)
  • Another reason for suspicion is that AEP doesn’t have a physical location–just a PO box in Long Island City.
  • I know that they bank(ed) with Washington Mutual, which couldn’t give me a shred of info because AEP is their customer.
  • Being “listed” with the Better Business Bureau, as AEP advertises, means nothing. The BBB awards accreditation to select businesses that have been reviewed, but will list anyone who provides information. http://search.newyork.bbb.org/reports.aspx?id=98005&pid=44&page=0&FindStr=Affordable+Equity+Project&SearchBy=company&Address=&City=&Phone1=&Phone2=&Phone3=&MembersOnly=False

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What is NYC Rent Stabilization Exactly?

by alicia on March 14, 2012

By Kelley Boyd (@msksboyd)

So, what is NYC Rent Stabilization exactly?”

Many of you are not from here – I am not from here either so anything we know about rent control is not really firsthand. Most of us get our information from the landlord…or at least I did. So, rent control remained mysterious. Turns out not really mysterious, not even complex, just dense. So to make it a bit easier to be conversant there are some high level things you should know as you look for a place to live in New York State.

Many people are under the false impression that the price is the price because that is just what it costs to get a place. Well, not always. The city has long had programs to assist landlords in the way of tax relief against their property taxes. In exchange landlords abide by some rules…among them rules on how much they can raise rents, what they can claim in the way of improvements, and a hodge-podge of other administrative stuff, such as giving you a statement on your deposit, copies of your lease etc.

NYC Rent stabilization vs NYC Rent Control:

NYC rent stabilization is different from rent control in that the rent control program has been replaced by the rent stabilization code. There are still some apartments under rent control guidelines because of longevity leases etc. I don’t know a lot about rent control other than when an apartment moves off rent control to rent stabilization there is some paperwork required and the opportunity to bring the rent to market rate is in play. Both programs are administered by the DHCR, a state agency. There is an affiliate city agency that also has influence, HPD, though in my experience they have not played a role.

So – focusing on NYC rent stabilization – each year rent increases are determined by a formula that the state legislature has approved.

It is certainly reasonable for landlords to be paid a fair amount of money for their apartments, but the amount of money they legally can charge if they take the subsidies is managed…and if they cheat – well, that is not right. And it can result in some huge dollars being collected by the landlord illegally. HUGE.

But tenants also cheat and many of us unwittingly proliferate these problems by participating in a system that is built on the fraud. So that good deal on a “sublet” that is in the Village – the one that is only $2400 for a studio. It is through a friend of a friend who got the apartment from her grandmother, but they actually live in Connecticut and have three kids in school there. Since they only pay $600 for that apartment they are in effect paying their mortgage from the city rental…so, that is potentially a HUGE windfall – 10 years of collecting an extra $1800 a month – not right either.

We illustrate the tenant windfall with assumptive numbers but pay attention, it is the calculation for only one apartment. While there are those who will keep up the ruse, as technology evolves it will be easier to keep track of access and it may become onerous and at some point may not be possible or worth it. Alternatively, landlords windfall stand to be much bigger so it is always going to be worth it. Even small scale landlords…take that number and multiply by 20 apartments. Then times a couple of buildings, and even the small time landlords can really be raking in the cash.

New York Rent Stabilization, New York Rent Control: The Morals

The moral to this installment is there is plenty of blame to go around when it comes to the high real estate costs and challenges in New York City. We will talk about the pieces of paper you need to pay attention to in the leasing process that will signal a possible illegal rent in the next installment.

Kelley Boyd is a serial entrepreneur who is not afraid to tackle the really hard things. Three years into the abyss of the DHCR with a rent overcharge claim, this column is a conduit for all that is crazy about NY Rental Board Guidelines. Get connected at www.about.me/kelleyboyd or at www.theleanexperience.com

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Guarantor Service says “2012 NYC Renter Should be Qualified, Prepared or be Frustrated!”

by alicia on February 27, 2012

Guarantor Service: Insurent Lease Guaranty says ” 2012 Rental Season will be the Toughest in Years

The NYC apartment renter will be facing tough market conditions which will make it especially challenging to rent an apartment this upcoming rental season. Insurent Lease Guaranty states that the challenges for renters are: high demand from many who prefer to rent, very high prices, low vacancies, occasional above ask bids, multiple applications, very tough qualification standards, short window of opportunity or time on the market, waiting lists for apartments before they are listed which limit the number of apartments actually reaching the market, and less supply due to fewer new luxury rental buildings opening in 2012. All in all, renters are facing a very difficult market in 2012 and will have to be fully qualified, totally prepared, and capable of deciding quickly want a particular apartment.

Shai Gruber, head of Caliber Associates New York  office, concisely explains the dramatic reversal of conditions of the rental market during 2011 and the very challenging 2012 market conditions: “At the very beginning of 2011, the rental market was very much in the favor of the renter: vacancy rates were much higher than they are in February 2012, and the prices of apartments were much lower. Therefore, in 2010 and in January 2011, owners were still offering OP (to pay brokerage fees) and also offering rent concessions to attract renters. The conditions changed during 2011 season and now in February 2012, it is a very strong landlord market as the conditions are completely different from January 2011: prices are higher, vacancies are lower, OP has disappeared, and rent concessions are rare. It is now a much more difficult market for the renter.”

The higher prices and other factors are often undermining the plans of many renters who unexpectedly discover that they cannot quite qualify for their apartment because they do not earn at least 40-45x the monthly rent or their guarantor does not earn 80-85 times the monthly rent or their guarantor is not acceptable due to the fact that he/she lives outside of NY or the NY area. Internationals, working or students, almost always struggle because they do not have US credit or a domestic guarantor. Even wealthy US retirees and others with significant cash liquid assets, who are out of the work force, are often unable to qualify. Self-employed persons with variable income also have numerous problems as well.

Guarantor Service Managing Director Charles Schoenau adds:

“Many renters are not aware how the market conditions have changed dramatically in the last 13 months, and some mistakenly believe that the economic turmoil on Wall Street and worldwide has kept the NYC rental market in check. Most renters are in for a shock when they see how fast apartments rent, how high prices are, how difficult it is to qualify in many cases, and how quickly they have to decide about an apartment if they are qualified. One renter told me this week that he finally found 3 apartments that he would consider, but when he called the next day, they all were gone in less than 24 hours. Another renter from overseas was making periodic trips to NYC, and every apartment he liked became problematic and he lost it, often before he could even present all his documents. Renters, who are not fully prepared and qualified or hesitate, are having to spend a long frustrating time trying to nail down the apartment that they want in 2012.”

In 2012, renters must be sure that look early enough and can be decisive about the apartment. Equally important, the renter and their broker must be sure that the renter has all the renter’s paperwork in order, as well as their guarantor’s paperwork in perfect shape, or be prequalified by Insurent, before they apply for the apartment. Renters who have any flaws in their application or qualifications will be at risk of losing their rental apartment to a qualified competitive renter and destined to spend a longer and frustrating period of time finding their apartment.

The Insurent Lease Guaranty Program can solve all of these problems for the renter.

ABOUT INSURENT GUARANTOR SERVICE

The Insurent Lease Guaranty Program was created to serve renters, landlords, condo/coop owners, and brokers and relocation specialists by offering the first institutional guarantor of residential leases. The Insurent Lease Guaranty Program has been featured in the New York Times, The Real Deal, The New York Real Estate Journal, Real Estate Weekly and Multi-Housing News.

The Insurent Lease Guaranty Program is underwritten and issued by Argonaut Insurance Company, a property and casualty insurance company rated A (Excellent) by A. M. Best. Instead of looking for an individual guarantor or co-signer, or having to pay a significantly larger security deposit or prepaid rent, a renter may utilize the Insurent Lease Guaranty to satisfy the landlord’s financial and credit requirements.

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How To Find an Apartment in NYC: Your Common NYC Rental Questions Answered

by alicia on February 24, 2012

How To Find an Apartment in NYC : How To Rent in NYC .com’s Rental Expert

How To Find an Apartment in NYC: Do I need a broker to rent in New York City?

This is the million-dollar question! The simple answer is “no,” you don’t need a broker to rent in NYC. But it is helpful to have one. Most management companies and landlords do not make vacancy listings available to the general public, but rather only to brokers. Why? Because for these companies it is easier to let a middleman (or woman) handle the work of actually leasing an apartment to someone else. The management company/ landlord does not have to show the place; the broker does it. The management company/ landlord does not have to fill out the paperwork for credit checks and leasing; the broker does it. However, there is a new shift of management companies/ landlords who make their vacancies available to the general public, and these limited listings do make it possible, to rent an apartment in NYC without a broker.

How To Find an Apartment in NYC: So is it better to go through a broker or to do it on your own?

Most of my peers came to this city swearing they would never use a broker to rent an apartment. I swore that I would not use a broker. However, most of those peers (and I) gave in after a short period and hired one. Why? A few years ago there weren’t any “NO-FEE rental website“  to make appointments on your own. And the truth is, brokers have hundreds of listings that you do not have access to, they get the keys to the units more readily than you do and they help you get all of the paperwork together faster than you would on your own. In short, they cut down on time and effort for everyone involved. So, is it better to go on your own these days? That is up to you. With sources such as HowToRentInNYC.com and management company’s going online you do have the abilitiy to do so. If you have the time and energy I would suggest trying it on your own and seeing if you can find what you want is realistic. As you know, brokers will always be there to help…

How To Find an Apartment in NYC: What’s a normal commission rate for a New York City rental broker?

The commission is the money that the broker earns for successfully renting you someone else’s apartment. You do not pay for them to show you apartments or for getting your paperwork together. You only pay if you rent and sign a lease for an apartment through them. As a rule, expect to pay about 15% in commissions. “Fifteen percent of what?” you ask. Fifteen percent of your first year’s rent. For example, let’s say that your rent each month is $2,000. That means that you pay $24,000 for your apartment over the course of an entire year. Fifteen percent of $24,000, ( that is, 24,000 x .15,) equals $3,600. Most brokers are negotiable to 12% which is considered “corporate rate.”

How To Find An Apartment in NYC: Can I get around the broker if I sign one of those “fee agreements” at the brokerage companies?

The legal answer is NO! The Fee Agreement is designed to protect the broker from you going behind their back and renting the apartment without them. You signed your name to a contract stating that you will not rent this apartment with another broker or try to contact the management company directly for at least 180 days (the average fee agreement length of time). Make sure the broker gives you a copy of your fee agreement after they are done taking you to apartments. This way hi you have the list of apartments at your disposal, and that way, when you talk to the next broker, you can tell them what you have all ready seen and it doesn’t waste your time or theirs. If a broker finds out that you rented the apartment without their knowledge, and that broker works for a bigger company such as Citi-habitats, Corcoran, or Best Apartments, then be aware that they do have the time and the resources to come after you. You’ll definitely wind-up paying the fee, and if the case makes it to court, well…it could get worse. It isn’t worth the anxiety, well for most anyway.

How do I find an apartment in NYC without a broker?

If you have the time and energy, then YES, you can find an apartment in NYC without a broker.

1. NO FEE WEBSITES

There are many NO FEE websites for management companies where you can see their listings. These sites explain their rental process and usually allow you to make an appointment to view the units directly. Fortunately for you HowToRentInNYC.com has the largest NO FEE MANAGEMENT COMPANIES and WEBSITE list on the web. There are also “search engine” websites such as Craigslist.com and Backpages.com that offer good leads, however, when browsing on any of these, look for “owner” listings and not those of a broker. Brokers use these sites to generate business, and again, you’re trying to avoid that fee.

2. WALK AROUND THE AREA YOU WANT TO LIVE IN

Another idea is to walk around the area you want to live in. Look inside buildings for the management company’s phone number. Call the company directly, but make certain that you are prepared to hear the words, “We only talk directly with brokers.” Nevertheless, be positive and persistent because inevitably some companies will deal directly with you, even if they don’t list.

3. CALL ALL YOUR CONTACTS

Make certain to contact anyone and everyone you know who lives in the city. There is always someone trying to find a roommate or to sublet an apartment. This means no fee to you.

4. RANDOM ROOMATES, MOST PEOPLE ARE NORMAL

Building off number 3, check out craigslist.com, backpages.com and other sites to find people you DON’T know who are looking for roommates. It is a scary thought living with someone you don’t know anything about, but this is becoming the norm in NYC due to high prices and low inventory. TIP- it is ok to ask the potential roommate about their history and referrals for them.

5. DOORMEN ARE YOU FRIENDS!

Finally, remember to talk to NYC’s most knowledgeable people: building doormen. Most of the doormen are aware of the availabilities in the building that they work at, and sometimes they can put you in direct contact with the Management Company or owner of a particular. Be polite, kind, and gracious when you approach, because if things go well, you’ll be seeing a lot of your new doorman (doorwoman.)

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Rentenna’s NYC Celebrity Map, Who Do You Live Near??

by alicia on February 21, 2012


NYC Celebrity Star Map by apartment ratings and reviews site Rentenna.com

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