Okay, here's a chance for the "It's a New York thing; you wouldn't understand" crowd to really strut their stuff. I have a question about rent control. Of course replies from other rent-controlled cities are also welcome.
Kramer used to sublet from MAY's Paul. The apartment is rent controlled and therefore the rent is way below market value. Paul makes no profit on his sublease to Kramer, so Kramer also paid cheap rent. Now as I understand it this below market rent results in tons of subletting because no one wants to give up their low rent and the potential for making money on a sublease. I also thought that under most rent control schemes the rent could be raised when (and only when) the main lease changed hands. Is this right? Doesn't this mean Kramer's rent went way up when Paul signed the lease over to Kramer? Just wondering....