Luxury housing market: Horror stories about super-rich tenants in Manhattan

With a deep insight into this elite audience, the Financial Times I’ve spoken to several real estate agents who’ve found that rent can range from $25,000 to $75,000 per thirty days, although a townhouse in SoHo may be had for $100,000 per thirty days – or $1.2 million per yr. was rented to a technology broker.

The supply of such properties skyrocketed after Michael Bloomberg rezoned areas to permit for more high-rises during his term as New York mayor. But the preference for renting over owning a house is as a consequence of newer trends, it is alleged FT Report.

A key trigger has been the migration of individuals from New York to Florida for the reason that pandemic. While they work remotely more often than not within the tax-free Sunshine State, they still need a spot to remain in Manhattan once they attend necessary meetings or events.

An extended stay in a five-star hotel could be dearer than renting a luxury apartment. In addition, brokers informed the FT that renting suggests less permanence than owning, and distant staff are desirous to avoid the scrutiny of New York tax officials. Many rental agreements are also taken out by corporations, meaning the high rents are tax deductible, while corporations are also reluctant to own an expensive asset. One agent even suggested that renting an apartment on Billionaires’ Row could be an excellent networking opportunity.

Most super-rich tenants are well-behaved, brokers said. However, for some this will not be the case and so they have the financial means to attempt to avoid any consequences. Here are some horror stories.

“They are very wealthy and it is very difficult to take them down because they also have the resources to fight,” said Collin Bond, who leads the Fabrikant Bond team at Compass FT.

He shared an example of a tenant working in finance who was paying $30,000 a month and was evicted due to it. The owners later discovered that he had refused to pay rent in other cities and dodged court, although he was taken to court in New York and needed to pay.

But the headache wasn’t over yet.

“We went in to assess the damage and found that he had literally removed walls – apparently he had brought in contractors and told them to tear everything up, put it in bags and carry it out,” Bond said.

Meanwhile, Julie Pham, an agent at Corcoran, told the FT that a businesswoman paying $50,000 a month demanded that the owner install high-tech Toto toilets. But when she moved out, the owner discovered she had stolen them.

Then there have been these two crypto brothers.

Brandon Trentham, a Compass agent, told the FT of “Bitcoiners” paying $55,000 a month for a furnished townhouse where the owners have stored personal belongings in locked closets as required by the rental agreement.

But the tenants opened it anyway, picked up the items and threw them on the curb to be picked up as trash. The owners were in a position to get some items back, but others were sold on Facebook Marketplace.

“They cried for all the memories of their children and family photos,” Trentham remembers. “And after we spoke to the tenants, that they had no remorse. They were young punk kids with silly money. And they said, ‘We asked for all personal items to be taken out, and if you need to sue us, go ahead.'”