Motivated by high profits, Chinese landlords are stepping up the illegal subdivision of apartments in New York’s Chinese neighborhoods. These apartments, which attract many renters, are subdivided on the sly, allowing landlords to earn a lot of money while avoiding paying higher taxes.
Subdivisions are happening in Manhattan’s Chinatown, in Flushing and Elmhurst, Queens and in Brooklyn’s 8th Avenue, Sunset Park and Sheep’s Head Bay, where most of the Chinese immigrants reside. Landlords, looking to maximize their profits, often cut corners when they adapt their properties for multiple dwellers, sometimes resulting in hazardous living conditions.
Chinatown’s East Broadway has perhaps the most egregious illegal subdivisions. On Henry Street and Madison Street, for example, you can find a one-bedroom apartment divided into several rooms, where it is not uncommon to find 10 or more bunk beds lined up in a room. Landlords rent out to whole families or groups of individuals. Some spaces are designated all-male or all-female rooms.
The apartments divided into very small spaces attract new Fujianese immigrants who want to save money quickly and pay off heir debts.
Some of the tenants are new immigrants who work in other states. They only come to New York during holidays or on their days off. Because of poor management, during Thanksgiving or other major holidays, the number of tenants in these illegal apartments multiplies.
A Chinese real estate agent said that the proliferation of illegal subdivisions of Chinatown apartments has everything to do with high demand. Chinatown is considered to be the center for most Fujianese immigrants in the United States. Many of them, especially those who live in other states, see New York’s Chinatown as the focal point of businesses.
The profusion of small advertisements for Chinese apartment rentals is a testament to the burgeoning rental market in Chinatown. A single bed can run from $120 to $150 a month; a one-bedroom could go for a few thousands of dollars. The profit from the subdivided apartments is shockingly high.
In Queens, illegal subdivisions happen in houses, usually breaking them up into multiple individual rooms in the upper floors or the basement. Landlords there usually target small families or college students. In Brooklyn’s Chinese community, subdivided properties are usually apartment buildings, which mostly attract new Cantonese or Fujianese immigrants.
Real estate agents familiar with this type of housing indicate that many Chinese owners decide to subdivide their properties illegally in order to avoid higher property taxes that the city would impose.
