Rent-Stabilized Buyout Calculator

Formula

To calculate the Buyout Amount:

\[ \text{Buyout Amount} = (\text{Market Rent} - \text{Current Rent}) \times 12 \times \text{Years Remaining} \]

Where:

$\text{Buyout Amount}$ is the estimated amount offered to the tenant to vacate the rent-stabilized apartment ($)
$\text{Market Rent}$ is the estimated rent that could be obtained if the apartment were not rent-stabilized ($ per month)
$\text{Current Rent}$ is the current rent paid by the tenant for the rent-stabilized apartment ($ per month)
$\text{Years Remaining}$ is the number of years left on the tenant's lease

What is a Rent-Stabilized Buyout?

A rent-stabilized buyout is an offer made by a landlord to a tenant to vacate a rent-stabilized apartment. The buyout is typically a lump sum of money offered to the tenant in exchange for agreeing to end the lease early and vacate the property. This is often done so the landlord can renovate the apartment and rent it out at a higher, market-rate price.

Example Calculation 1

Let's assume the following values:

Market Rent = $3000/month
Current Rent = $2000/month
Years Remaining = 5

Using the formula:

\[ \text{Buyout Amount} = (3000 - 2000) \times 12 \times 5 = 600000 \]

The buyout amount is $60,000.

Example Calculation 2

Let's assume the following values:

Market Rent = $2500/month
Current Rent = $1500/month
Years Remaining = 3

Using the formula:

\[ \text{Buyout Amount} = (2500 - 1500) \times 12 \times 3 = 36000 \]

The buyout amount is $36,000.