Karen is a buyer's agent representing client Paul who wants to purchase a rent-stabilized apartment building in Brooklyn as an investment property. Paul asks Karen about the rental income potential. What should Karen advise Paul regarding rent-stabilized units in New York?
Correct Answer
C) Rent-stabilized units are subject to specific rent increase limitations and tenant protection laws
Karen should inform Paul that rent-stabilized units in New York are subject to strict rent regulation laws that limit annual rent increases and provide strong tenant protections. These regulations significantly affect the property's income potential and Paul should understand these limitations before purchasing.
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