Rent-Stabilized Buyout Calculator

Calculate Buyout Amount





Formula

To calculate the Buyout Amount:

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

Where:

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:

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:

Using the formula:

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

The buyout amount is $36,000.