New Rental Laws - How will this affect small-time landlords?

5 Replies | New York City, New York

Looks like some interesting new rent laws are going into effect.  It looks like this won't directly affect small time landlords with 1 and 2 family properties.  Am I missing something?  

If it does not directly affect us, what do you think the trickle effects will be in terms of rental prices, vacancies, home property values, etc.?

Two parts of the law that I know will affect me:

 - coop buildings are not allowed to charge an application fee.  if they do charge a fee, that must be paid by the owner, not the tenant.  that will cost me $$ and risk when my apartment turns over.

 - landlords are not allowed to ask for nor accept rent paid in advance.  In NYC many tenants are foreigners (or sometimes students) without credit history or local employment who were willing to put up considerable rent in advance instead of a credit check.  this is no longer allowed.

Originally posted by @Brian Hannon :

Two parts of the law that I know will affect me:

 - coop buildings are not allowed to charge an application fee.  if they do charge a fee, that must be paid by the owner, not the tenant.  that will cost me $$ and risk when my apartment turns over.

 - landlords are not allowed to ask for nor accept rent paid in advance.  In NYC many tenants are foreigners (or sometimes students) without credit history or local employment who were willing to put up considerable rent in advance instead of a credit check.  this is no longer allowed.

This is interesting. I'm from Long Island and I remember when I first set out to rent my first apartment. The standard "1st & Last Months Rent + Security" was due upfront. So, does this mean "Security" will no longer be upfront? What about a "Broker fee"? That's sometimes - here on LI - equal to a months worth of rent as well. Is it the same in NYC? 

Broker fee is still allowed.  Security deposit is still allowed, though capped at 1 month of rent and must be returned within 14 days after the end of the lease.  "Last month" is not allowed as that's prepaid rent.

https://www.nytimes.com/2019/06/21/nyregion/rent-laws-new-york.html

My understanding was that security deposits are capped at 1 month. 

But landlords can still take extra months of RENT up front. So first, 1 month security, and last 3 months rent could be ok still.