Being a landlord worth it in Ny?

Question

We have tenants who won’t leave since their lease ended 5/31 and haven’t paid since April. Our eviction lawyer giving an estimate of mid October to get them out. Makes me want to give up being a landlord in NY. Do you think it’s even worth it when they can get 5 months rent for free? Hard to stay profitable

Account Closed · Answer

I would like to offer a slightly more optimistic view of being a landlord in NYC. I have been living and investing here for over twenty five years and have found it to be a very positive experience. I have a pretty sizable network of fellow NYC landlord/investors, and none of us have ever encountered any of the horror stories that are often assumed to be commonplace here. That said, we tend to all invest in A+ areas and rent to young professionals.

I think there might be no better place on earth to build true wealth through real estate. Yes, the near term cap rates are minimal, but the long term equity gain is unmatched in my opinion. I have found being a developer here is way more challenging than being a landlord, the DOB/city are far tougher than any tenant ever could be. So, if your interested in investing in the city, don't let the headlines scare you.

Abel Curiel · Answer

Hello @Brittany Kelly,

This is super unfortunate, but as seen throughout the forum, it is part of the game.

I agree with @Account Closed regarding the importance of location. NY investing may not be over for you; it might just need to happen elsewhere on Long Island. More desirable areas will have lower cap rates, as Eric mentioned, but the long-term #s might make sense for your strategy.

That said, one bad New York tenant could result in a year (or more) of recouping losses i.e. damages & lost rent.

I started investing in NY before going OOS for deals... BUT I still keep an eye open for NY deals because it's NY.

Lastly, if you like the area where you're currently invested, build relationships with property owners. Your next deal could be purchased off- and/or below-market.

All the best!

Abel

Lydia Winn · Answer

Just wanted to chime in with some realistic thoughts on NY.

No state is entirely quick when it comes to evictions. While some states have shorter initial notice periods, the national average for a full eviction process, is closer to 3 months. Contested evictions can be significantly longer.

Even in states often cited as very landlord-friendly, like Texas, there are trade-offs. While Texas offers strong property rights and generally quicker eviction processes for uncontested cases, owners will contend with high property taxes.

Henry T. · Answer

nope. unless you're a corporation with many units to disperse the risk.

Wesley W. · Answer

Many folks locally are selling their portfolios here and redeploying in more "legislatively equitable" markets. This business is hard enough without the deck being stacked against you. Why intentionally swim against the current? Go and invest your money where your efforts are more respected and appreciated by the local and state community.

Lindsey Jellig · Answer

Thanks for sharing your story, Brittany. I went through the same thing in Brooklyn. The squatter on my end was a friend of a responsible and paying tenant. The friend was there for 8 months after the renter passed away. It was a tough situation to handle.

Similar to the other comments in this thread, yes, I hope a new mayor brings more rights to landlords rather than disproportionally tenants. I understand there are a lot of NYC "slum-lords" who renters need to be protected by but the current state of the how many rights tenants have with good all the ethical landlords out there isn't balanced just yet.

My vote: don't give up yet. I understand the feeling of wanting to. These tougher situations are edge cases and don't think it happens as often as getting great tenants. I also agree with looking to landlord in states with laws that are more balanced btw both parties. Hope this helps! I'm here anytime to chat more.

Matthew Paul · Answer

Wait for the new mayor

Being a landlord worth it in Ny?

Being a landlord worth it in Ny?

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