5 months without rent pay

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5 months without rent pay

Tony Merchan
Real Estate Broker · New York, NY · Member since 2020 · 30 posts · 30 votes

I have a two family house in Queens NY

1st floor tenant has been paying up to date

2nd floor tenant has stop paying since March , spoke to him today said he won’t pay until July because of covid . Now I spoke to my attorney there isn’t much to do since New York is tenant friendly, courts are backed up , evection are on hold . On Wednesday NY passed a bill that would temporarily stop landlords from evicting tenants for no payment issue related to the pandemic ? What about landlords ? I still have to pay mortgage and taxes . I tried to speak to tenant he’s just very aggressive there’s no form of communication with him . FYI he’s lease doesn’t end until November 2020 .

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Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
6y

@Tony Merchan NY landlords have a constitutional problem on their hands. The executive order barring evictions is a violation of the 5th amendment and 14th amendment. No person shall be denied their property rights without due process. An eviction ban is taking property, by denying rights to recover property that is not being paid for. They try to get around this by stating a tenant must still pay rent, but the courts block any legal recourse to recover rent or recover the property (eviction), so the landlord is denied due process. So it is one or the other, either they are taking without compensation or they are denying due process. The 14th amendment bars the states from denying due process. The courts arbitrarily determined what are essential court cases. For example a tenant can sue a landlord for shutting off utilities, even though the landlord can't sue a tenant to get rent to pay for those utilities. The courts have chosen one persons rights over another. 

You could even argue that since the 14th amendment requires equal protection, a landlord and tenant should have equal rights. By choosing what laws to enforce and who to favor, they are violating these constitutional rights.

These executive orders are a massive overreach of power by the Governor Cuomo and the courts. They could extend these orders for months or years and by shutting the courts, they remove the opportunity to even be questioned on their actions. This needs to be challenged in court and probably even at a federal level if the state refuses to hear the case. 

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  • David R smith
    Investor · NC · Member since 2020 · 12 posts · 1 vote
    6y

    Given what's been posted in thread about NY regulations for landlords your best play is probably to sell and get out market while it's strong.  In the Carolinas where I am at I don't consider people with evictions history, they have been through enough applications they usually offer you a 3 month security deposit up front.  I'd play the threat you are going to collections/reporting agencies as soon as the window opens.  That puts things they care about in jeopardy (about to get a new iPhone, financing on cars). 

    0Reply
  • Erin Malone
    Annapolis, MD · Member since 2016 · 46 posts · 3 votes
    6y

    @Russell Brazil can you do that in MD we are having this problem too?

    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    6y
    Originally posted by @Erin Malone:

    @Russell Brazil can you do that in MD we are having this problem too?

    Not sure, my tenants are all paying, so I havnt needed to check. 

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  • Erin Malone
    Annapolis, MD · Member since 2016 · 46 posts · 3 votes
    6y

    @Russell Brazil thanks we are good for all but one, and it is in Baltimore City where the courts will not open until 7/25.

    0Reply
  • Heath M.
    Rental Property Investor · Chattanooga, TN · Member since 2017 · 203 posts · 188 votes
    6y

    Crazy, I feel for you!  Some states just aren't cut out for investors...  I hope you are able to weather the storm!

    0Reply
  • Henry Lazerow
    Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    6y

    @Salman V. I would be happy to join in on a class action lawsuit for IL. All my tenants are cool and pay but this still is clearly an illegal overstep to ban evictions. As mentioned earlier in threat tenants who use loopholes to screw you over did not become this way overnight and can be avoided through strict screening. I rent my units a little below market to get head ache free tenants, to me it's well worth it.  

    1Reply
  • Delta Cycle
    Member since 2009 · 1 post · 0 votes
    6y

    Do the same NY laws apply to Southern California landlords?

    0Reply
  • Franklin Romine
    Visalia-Fresno, CA · Member since 2009 · 1k+ posts · 863 votes
    6y

    @Tony Merchan

    I thought being a landlord was all fun and games

    0Reply
  • Loren Oatman
    Real Estate Agent · Syracuse · Member since 2016 · 32 posts · 15 votes
    6y

    I had a second thought on this. As I said, the order is a forbearance not a grant. The tenet is still responsible for all of the rent. Softly remind him that he is responsible per his contract. This doesn't make your current expenses less. Keep good records of all correspondence and inform him of inspections. I would have inspections while he is still in the apartment. Photo of all of the property. Either have someone do it or have someone with you, but don't do it alone.  Put it in writing that he is responsible every month with the late fee. $50. I know that sucks. Thanks NYS. This will keep a paper trail. Of course this is not what you want to do. Take the high road. Keep track of all cost including fees/ loans / interest/ stamps. Everything that cost you when you do get the property back. Lawyer cost. Check your lease agreement and see if you put in an eviction clause that covers the cost. When he does leave TOTAL all you cost and File Suite. With In reason keep your cost low as possible. Then sell it to a collection agency. This is my opinion and not legal advice for disclosure. Screening is the most important thing but not full proof.

    0Reply
  • Emmanuel Hirakis
    Rental Property Investor · Queens, NY · Member since 2019 · 28 posts · 13 votes
    6y
    Originally posted by @Tony Merchan:

    I have a two family house in Queens NY

    1st floor tenant has been paying up to date

    2nd floor tenant has stop paying since March , spoke to him today said he won’t pay until July because of covid . Now I spoke to my attorney there isn’t much to do since New York is tenant friendly, courts are backed up , evection are on hold . On Wednesday NY passed a bill that would temporarily stop landlords from evicting tenants for no payment issue related to the pandemic ? What about landlords ? I still have to pay mortgage and taxes . I tried to speak to tenant he’s just very aggressive there’s no form of communication with him . FYI he’s lease doesn’t end until November 2020 .

     There is a relief you can apply for, look into that. 

    0Reply
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