NYC Mid-Term Rentals

[Stephen Macknik]

I own a duplex (in which I live in one unit) in Brooklyn, and a SFR rental in Arizona. I am interested in purchasing another property in NYC. STR's are illegal in NYC, and I don't understand how positive cash flow is possible for rental investment properties in NYC (given the high cost of properties and rents that do not scale by the same factor), but I'm wondering about MTRs. Do MTRs succeed in NYC, or am I missing a secret to making standard annual rental contracts work in NYC? Thanks for any guidance!

[Maurice W. Evans]

Quote from @Lydia Winn:

One main thing to understand is once a tenant has occupied the space for over a year (regardless of the term of any individual lease) special protections kick in. They get even more after two years in a space.

In New York City, a tenant's rights, particularly the required notice period for a landlord to end a tenancy or raise the rent, are based on the cumulative amount of time the tenant has lived in the residence.

Good point, Lydia.

And you’re right—NYC tenant protections are no joke. But here’s the bigger picture most people miss: in NYC, about 90% of full tenant rights kick in after just 30 days, not a year. Lease or no lease, if they’ve got utilities, mail, or...even just been in place past that threshold—they’re protected.

The courts are overloaded, and tenants get free attorneys. That’s why the average eviction runs 18 months, sometimes stretching to 2 years. It’s the #1 reason investors shy away from MTR.

But here’s the thing: that risk can be managed. There are ways to structure agreements, screen properly, and design your process so you stay in control of your asset. Most landlords don’t realize the flexibility they can build in—if they approach it intentionally.

So yes, MTR in NYC carries teeth—but it also carries leverage if you know how to play the game.