NY & the new Landlord/Tenant Laws

[Michael Ablan]

Hey guys, So on June 14th, a new wave of tenant friendly laws were passed in NY.  My attorney is still reviewing everything, but has given me the following bullet points

• The old 3 day non payment demand for rent is now changed to 14 days
• A tenant can automatically ask for a 14 day adjournment at court and have it granted
• Once a warrant has been issued, it cannot be enforced for 14 days (changed from 72 hours).
• A tenant can request a hardship and be granted up to 1 year to remain in the unit
• Late fees are capped at $50 or 5% of the rent (whichever is higher).  The landlord must give the tenant a 5 day grace period, and must send a certified letter before they can begin charging rent.
• Landlords are no longer allowed to charge application fees.  They may charge up to $20 or background/credit screenings 
• Landlords may no longer deny tenants based on prior evictions or other landlord/tenant disputes
• Month to month tenacy must be terminated in writing as follows
  • 30 days if tenancy has been less than 1 year
  • 60 days if tenancy has been more than 1 year, but less than 2 years
  • 90 days if tenancy has been more than 2 years
• Court dates must be scheduled 10 days out from the notice of petition, rather than 5 days
• If you are evicted for breaking the lease rules, the court must give you 30 days to delay the eviction for you to fix the problem

This is just a handful of the changes.  Some of these are an absolute disaster, especially in regards to how many opportunities a tenant is given to delay the eviction proceeding.  Essentially they're being given an extra 1-2 months to live in the unit for free.

I'm super careful with my screening and placement, but I always seem to have issues with inherited tenants. I now have to assume I'm going to be stuck with these leeches for 2-3+ months. That doesn't even factor in the possibility of them getting granted hardship, which can allow them to stay in he unit for 1 full year rent FREE. That would absolutely sink the investment in the SFH landscape.

I guess I'm looking to hear from other landlords who operate in super tenant friendly states.  Do you avoid class D & C investments completely?  Do you budget in higher operating costs when doing due diligence?  When you buy properties, do you demand the tenants be removed before closing?

A part of me wants to flip this state the finger and head south, while the other part see's an opportunity to pick up deals from investors who can't/won't change to the new landscape.

Thoughts?

[Wesley W.]

Quote from @Karmina Luna-Dominguez:

Hello,

Sorry first time using the forum. I got my first deal in Rochester NY and will be closing in late Oct! I have so many questions regarding the tenant law in NY.

I’m inheriting tenants with this first deal, are the sellers obligated by law if the tenants are current on their rent or if they’re behind? Can sellers also sell a property that has squatters without disclosing it? 

 Hi Karmina.  Welcome to BP!  Feel free to PM me if you need any help navigating the NY L/T laws.  I'm pretty up to speed on the statute.