1. What is a Rent-Stabilized Buyout Calculator?

Definition: This calculator estimates the buyout amount for rent-stabilized properties based on property value and a buyout factor.

Purpose: It helps landlords and tenants negotiate fair buyout amounts for rent-stabilized apartments.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( B \) — Buyout amount (USD)
• \( V \) — Property value (USD)
• \( k \) — Buyout factor (typically 0.5-1.5)

Explanation: The property value is multiplied by a buyout factor to determine a fair buyout amount for vacating a rent-stabilized unit.

3. Importance of Buyout Calculation

Details: Proper buyout estimation ensures fair compensation for tenants while allowing landlords to legally recover rent-stabilized units.

4. Using the Calculator

Tips: Enter the property value in USD and buyout factor (default 1.0). The factor typically ranges between 0.5 and 1.5.

5. Frequently Asked Questions (FAQ)

Q1: What determines the buyout factor?
A: The factor depends on market conditions, tenant circumstances, property location, and negotiation leverage.

Q2: What's a typical buyout factor?
A: Most buyouts fall between 0.8 and 1.2, with 1.0 being a common starting point for negotiations.

Q3: When would I use a higher factor?
A: Higher factors (1.2-1.5) might apply for desirable locations, long-term tenants, or when quick vacancy is needed.

Q4: How do I determine property value?
A: Use comparable sales, tax assessments, or professional appraisals to estimate the property's market value.

Q5: Are buyouts legally binding?
A: Yes, when properly documented, but tenants should consult legal counsel before accepting any buyout offer.