Changes to the Landlord-Tenant Rules in NYC

[Lashawn McCauley]

I attended an NYC Landlord presentation a few weeks ago. Below are some of the changes to NYC laws. Please add to this post or correct any errors I may have written. 

The Housing Stability and Tenant Protection Act of 2019 (TPA) caused many changes in the landlord-tenant rules in NYC. Tenant advocates are happy, while landlords/investors aren’t celebrating.

Below are some of the changes:

Rent stabilization – Almost one million units in NYC are rent-regulated. With TPA in place, these units will have the same rent even if a tenant breaks the lease. Units in the rent stabilization program also can no longer leave the program.

Limits on security deposits – Security deposits can be no more than one month’s rent. This could make it difficult for landlords to have money for damages after a tenant leaves or to cover lost rent on a broken lease.

Notice of rent increase – In non-rent regulated units, landlords must provide a 30-day notice of a rent increase for renters in the unit for less than one year. Any renter in the unit longer than one year, but less than two years gets a 60-day notice.

Evictions – Judges can stay evictions for as long as 12 months if the tenant is unable to locate a comparable place to live within the neighborhood. Judges can also determine how the eviction will affect the family’s education (kids in school) or the tenant’s health and base his or her decision with that information.

Unlawful evictions – Any force or use of unlawful tactics to remove a tenant is a misdemeanor. This can result in fines between $1,000 and $10,000.

Application fees – Landlords may only charge a maximum of $20 for application fees or background checks.

Rent increases – Rent increases have a cap of $15,000 every 15 years, expiring after 30 years. Any major capital improvements made to a building allow a rent increase of a maximum of 2%.

[Michinori Kaneko]

@Raul R. same here. i guess you can "Bank" for an appreciation. My primary resident did increase in value by 50% in 5 years, but even then, if i were to rent my apartment today, i'd probably break even or maybe make $200 a month with 0 vacancy and 0 repair estimate.  And i got a loan with interest rate super low (i think like 3.5% or something).  I doubt you can cashflow if i bought it today (since now the properties are worth even more), and man... 1 year to evict...? "if the tenant is unable to locate a comparable place to live within the neighborhood".  How the heck do you expect a tenant that is being evicted to be able to find a  "comparable" place to live that they can afford? That would be a NIGHTMARE!