New York State Landlords Must Act!
Lititz, PA · Member since 2013 · 595 posts · 272 votes
New York State Landlords Must Act!
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Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
6yOriginally posted by @William Coet:
Use the link below to contact the State Senators who are involved with this bill, including your local Senator.
This has the potential to destroy small scale owners who also do all of the work themselves! It offers a fractional mortgage relief and relief from no other bills. If you do not have a mortgage you get no help for property taxes, insurance, maintenance costs, and it denies you of your income to pay your own bills!
In the meantime if tenants become unemployed they are eligible for unemployment.
Do something to help!
New York; the only place that makes California look like it's part of a free country.
12 Replies
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes6y
Originally posted by @William Coet:
Use the link below to contact the State Senators who are involved with this bill, including your local Senator.
This has the potential to destroy small scale owners who also do all of the work themselves! It offers a fractional mortgage relief and relief from no other bills. If you do not have a mortgage you get no help for property taxes, insurance, maintenance costs, and it denies you of your income to pay your own bills!
In the meantime if tenants become unemployed they are eligible for unemployment.
Do something to help!
New York; the only place that makes California look like it's part of a free country.
- Rental Property Investor · Fayetteville, NC · Member since 2014 · 884 posts · 670 votes6y
One of the pitfalls of investing in a socialist state.
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes6y
If rent is abated, there is likely a mortgage abatement for the same period. It's just kicking the can down the road.
The DIY Landlord Book4.7248 Reviews - Lititz, PA · Member since 2013 · 595 posts · 272 votes6y
Originally posted by @Nathan Gesner:
If rent is abated, there is likely a mortgage abatement for the same period. It's just kicking the can down the road.
Unfortunately, it isn't kicking the can down the road. It is creating a serious hardship for a portion of the our society. It doesn't abate property tax payments, insurance payments, maintenance contract payments, maintenance costs, and doesn't replace income lost that housing providers rely on for their own living. All of this with no reimbursement from the government that is proposing it.
Unemployed people are eligible for benefits (including stimulus bill enhanced payments) that don't need to be repaid, housing providers are not.
- Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes6y
Mods...I really wish you had left his video link up. I watched it and it is exactly what we need to get out there to the public in NY. This a time where we need to communicate about our business to others as well as to the NY legislators. The haters are quite organized. We need to educate the tenants out there about what this bill will do.
Nathan, to answer your question the bill is forgiving a proportional amount of an agency loan equal to the number of tenants whose rent is forgiven. I don't need to tell anyone on these forums that debt service is only a small portion of the monthly operating expenses.
Here a link to the bill, which has now been adopted by both chambers of government:
https://www.nysenate.gov/legislation/bills/2019/s8125?fbclid=IwAR3pDKVhZZyW2fSc8jG5Y3YVfsVs96xFtz3EJOSfowLMM1bwcUymImrKNsA - Developer · New York City, NY · Member since 2015 · 812 posts · 718 votes6y
Originally posted by @William Coet:
Originally posted by @Nathan Gesner:
If rent is abated, there is likely a mortgage abatement for the same period. It's just kicking the can down the road.
Unfortunately, it isn't kicking the can down the road. It is creating a serious hardship for a portion of the our society. It doesn't abate property tax payments, insurance payments, maintenance contract payments, maintenance costs, and doesn't replace income lost that housing providers rely on for their own living. All of this with no reimbursement from the government that is proposing it.
Unemployed people are eligible for benefits (including stimulus bill enhanced payments) that don't need to be repaid, housing providers are not.
Certainly not the greatest solution, but there is a solution. The solution is to apply for a disaster loan from the SBA. This should hold you over until the storm passes. Hopefully, other landlords are not overextended and they have some savings and an emergency fund. Should a landlord refuse to accept help from the government, have no savings and no emergency fund; well that's on them. This is how it is. The only thing we can do is play the game within the rules that are currently in effect.
- Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes6y
Originally posted by @Justin Tahilramani:
One of the pitfalls of investing in a socialist state.
I've addressed that wide misconception here.
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes6y
I'm not saying it's perfect or it's going to solve the issue for every Landlord. However, it's unrealistic to think you can buy an investment property and the world will always pay your bills without interruption.
BiggerPockets preaches it over, and over, and over again. Investors should be financially disciplined. Don't spend your last dime on an investment. Don't over-leverage. Set aside a reserve. Be prepared for the market to turn.
In an emergency, Landlords can delay tax payments for 6-12 months without incurring much of a fee. They usually pay insurance in advance and it may not even be due for another 6-12 months. Maintenance contracts can be stopped and Landlords can limit maintenance to emergency issues only for the next 3-4 months.
A lack of rent income for 3-4 months should be survivable. If a Landlord can't survive this current situation, they're probably due to fail in any economic downturn.
The DIY Landlord Book4.7248 Reviews - Lititz, PA · Member since 2013 · 595 posts · 272 votes6y
Originally posted by @Nathan Gesner:
I'm not saying it's perfect or it's going to solve the issue for every Landlord. However, it's unrealistic to think you can buy an investment property and the world will always pay your bills without interruption.
BiggerPockets preaches it over, and over, and over again. Investors should be financially disciplined. Don't spend your last dime on an investment. Don't over-leverage. Set aside a reserve. Be prepared for the market to turn.
In an emergency, Landlords can delay tax payments for 6-12 months without incurring much of a fee. They usually pay insurance in advance and it may not even be due for another 6-12 months. Maintenance contracts can be stopped and Landlords can limit maintenance to emergency issues only for the next 3-4 months.
A lack of rent income for 3-4 months should be survivable. If a Landlord can't survive this current situation, they're probably due to fail in any economic downturn.
Please condsider that this is about much more than someones ability to have reserves. Aside from the obvious deficiencies and inequities of the proposed bill, it is critical to understand the political environment and the political gain that is involved. In NYC there is currently a movement of politicians and tenant advocates who promote the idea that housing should be completely controlled by the government. They call themselves Democratic Socialists, and if they get their way NYC will look like North Korea or Havana, Cuba sooner than later. These politicians promote policies for NYC that become statewide. These policies are often very damaging to small town /small scale housing providers in the rest of the state. They are exploiting people's lack of understanding of the costs and necessities to own and operate housing. They are getting votes to secure their own taxpayer funded incomes and health insurance costs. If you read comments, this bill is considered a step towards more government control of housing. We know that rent control and excessive government control of housing actually harms low income people, but the politicians who promote it don't care; they want votes and their taxpayer funded jobs to be secured
In this case housing providers are being required to provide a service without compensation. This is like requiring a restaurant to stay open for the next three months and serve all of its customers without being paid.
If you carefully consider the implications and some of the recklessness of
the proposed bill you may feel differently. For example:
-Not only are people who become unemployed eligible for standard
unemployment, they are also eligible for enhanced stimulus unemployment,
and the one time stimulus check. Many of these people will be earning
more than they were before. For example, I know of a plant manager who
is losing workers because they know they will be earning more with the
enhanced stimulus benefits. These enhanced benefits are being provided
by the government so that people can pay their expenses, not so that
they can stiff their housing provider. Unfortunately, this bill will
allow them to do exactly that.-This bill allows anybody who has lost any amount of income to not pay rent for three months. It does not
consider people's ability to pay or the amount of income lost. Many
renters have savings (sometimes more than their housing provider). Many
people are working part time to keep busy and are financially stable (retired
people, students gaining work experience for a resume and whose parents are funding them, etc) and this will allow them to withhold payments to their housing provider regardless of their financial situation and ability to pay.-This bill places a massive burden only housing providers shoulders.
It does not require any other provider of a service or product that
people use to be provided for free for three months with no
reimbursement. It does not require grocery stores or restaurants to
serve people for three months without reimbursement.-Self-employed housing providers are not eligible for unemployment
benefits, and for many of them the small percentage of revenue that is
left after expenses is their only income. An SBA loan is not a benefit,
it is more debt that must be repaid. Unemployment benefits that
unemployed people will be receiving are not repayable.-The government should be subsidizing the rent if they are going to
deny it to people, and ensuring that people who are receiving
unemployment benefits use them responsibly.-This is a reckless and poorly drafted bill that will do more harm than good.
- Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes6y
Here is the video in question. Please pass this on to everyone to whom you think would benefit in one way or another:
https://www.youtube.com/watch?v=e0TSoDnFNGs&feature=youtu.be(NOTE to Virtual Assistants: this video is informative in nature and applicable to many people in the BP community; it does NOT contain any promotional material and does not violate the Terms of Service as I understand them. The group that created this video is a non-profit advocacy group for real estate stakeholders in the State of New York. Thank you in advance for leaving this post and the link therein.)
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