I just purchased my first property—a beautiful 4-unit building in Queens, NY! This is my first time being a landlord, though I do have some experience managing my mother’s tenants who lived in our multi-family house.
Of the three current tenants, two are without leases, and two are on DSS CityFHEPS. While their rents are below market, they do pay on time each month.
I’d love some advice from experienced landlords:
1. What’s the best way to transition my tenants onto leases while also adjusting rent?
2. Does anyone have experience working with CityFHEPS? How can I go about raising the rent for tenants on the program?
Any insights or strategies would be greatly appreciated!
Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
1y
First off, congrats!! That’s a big move, buying a 4-unit in Queens. You’re officially a landlord now! Sounds like you already got a bit of a head start managing your mom’s property too, which definitely helps.
So here’s the deal:
Getting folks on leases:
If the tenants are cool and paying on time, that’s already a win. You don’t wanna shake things up too hard, especially if you’re new to this. Best move is to talk to them directly—something like, “Hey, now that I’m the owner, I’d like to get everyone on a lease just to keep things clean and official.” You can slide in a small rent bump at the same time, just nothing wild. As long as you give them proper notice (30 days for under 5% increase, 60+ if more), you’re good. Keep it respectful and transparent.
CityFHEPS tenants:
This one’s a little trickier. You can’t just raise rent on your own—the city has to approve it. Each unit has a rent cap based on size, and you’d need to submit a request through HRA. If your current rent is already near that cap, might not be much wiggle room. But if it’s low, there’s a chance. Also, CityFHEPS usually wants tenants on a lease, so you can actually use that as a reason to get something in writing with them too.
End of the day, stable tenants—even at below-market rent—can be more valuable than headaches with turnover. But if you’re trying to slowly bring the building up to market, this is how you ease into it.
First off, congrats!! That’s a big move, buying a 4-unit in Queens. You’re officially a landlord now! Sounds like you already got a bit of a head start managing your mom’s property too, which definitely helps.
So here’s the deal:
Getting folks on leases:
If the tenants are cool and paying on time, that’s already a win. You don’t wanna shake things up too hard, especially if you’re new to this. Best move is to talk to them directly—something like, “Hey, now that I’m the owner, I’d like to get everyone on a lease just to keep things clean and official.” You can slide in a small rent bump at the same time, just nothing wild. As long as you give them proper notice (30 days for under 5% increase, 60+ if more), you’re good. Keep it respectful and transparent.
CityFHEPS tenants:
This one’s a little trickier. You can’t just raise rent on your own—the city has to approve it. Each unit has a rent cap based on size, and you’d need to submit a request through HRA. If your current rent is already near that cap, might not be much wiggle room. But if it’s low, there’s a chance. Also, CityFHEPS usually wants tenants on a lease, so you can actually use that as a reason to get something in writing with them too.
End of the day, stable tenants—even at below-market rent—can be more valuable than headaches with turnover. But if you’re trying to slowly bring the building up to market, this is how you ease into it.
Thank you so much Mo! It's been almost a month and things are coming along. Appreciate your advice!
I would first advise you to go onto NYC.gov and learn more about City FHEPS. There are 2 types, one from the shelter(DHS) and the other is a shopping voucher (homebound). Additionally, make a friend at one of these agencies. They will provide a lot of guidance if they like to speak with you. There are additional nuances to these vouchers you should become familiar with. My experience is firsthand because I oversee programs that process and distribute these vouchers. Hope this helps