Can You Convince a Landlord to Buy You Out of an Apartment?

Q. I am a senior living in a rent-stabilized apartment in Elmhurst, Queens. As precious as my rent is, it has become extremely difficult for me to continue living in New York because of my limited income and increasing lack of mobility. So, I would like to approach the management company, which owns more than 200 buildings in the city, about buying me out of my lease. How do I start this conversation? Do I need to provide historical rent prices or market-rate comparisons? Would a letter explaining my situation move their hearts?

A. A rent-stabilized lease in New York is a valuable asset for a renter — such leases come with protections like tenancy for life and regulated rent increases. In some cases, landlords are willing to pay a pretty penny to buy a tenant out of it. If landlords think they can fetch substantially more money for the apartment after renovating it, they have an incentive to make a deal.

But in New York, location is everything. An apartment on the Upper East Side would be worth much more than one in Elmhurst, Queens, for example. So, before you approach your landlord, figure out how much your home is worth so that you know what you could reasonably demand.

Start by looking at market-rate apartments in your building or neighborhood. What do they rent for? On StreetEasy, the average asking rent for one-bedrooms in Elmhurst was roughly $1,970 per month in early January. Remember, your landlord would probably need to renovate your apartment once you leave. Would the profit margin be wide enough to warrant buying you out at the price you need to find a suitable home elsewhere?

“You have to understand the leverage that you have,” said David Rozenholc, a Manhattan lawyer who has won seven- and eight-figure buyouts for tenants.

Figure out your own bottom line. You will have to pay taxes on whatever payout you get — it needs to be enough to give you good options. “Where are you going? You need to get enough money to replace the apartment that you have now,” Mr. Rozenholc said.

If you approach your landlord, you do not need to share any information that you’ve learned — the landlord knows what the asset is worth. Instead, hold your cards to your vest. “The minute you approach the landlord with this question, the landlord thinks you’re going to move anyway and won’t give you any money,” Mr. Rozenholc said. So, “you have to make it very clear to them that unless you get a fair settlement, you have no ability to move, you don’t have enough money to move anywhere and therefore you’re not going to be moving.”