New York State Legislators considering waiving rents for 90 days

[Larry Brown]

To all landlords and real estate investors in New York State - The state senate is currently considering a bill that would waive/suspend rents for all tenants impacted by the corona virus. Senate Bill S8125A states that any tenant impacted by this virus would not have to pay rent for the next 90 days (and would never have to make up those payments).

Please write your senator (and assembly person) letting them know the damage this will do to your real estate business.

Below is a letter that I have emailed to my representatives as well as to all of the co-sponsors of the bill (note - I have deleted my numbers in the letter below) - 

I am a small-time landlord (total of ___ properties consisting of a total of ___ units) and the majority of the income that I live on comes from my rental properties. I am deeply concerned about Bill #S8125 that suspends/waives rent payments for those tenants who have lost their jobs because of the current COVID-19 crisis. If tenants do not pay their rent how do I pay my bills?

Over the past three years ___% of my gross rents have gone towards expenses associated with my rental properties.

My expenses associated with the rentals include:

• property taxes (__% of gross rents),
• insurance (__% of gross rents),
• repairs (__% of gross rents),
• utilities (__% of gross rents),
• mortgage( __% of gross rents)
• property mgt (__% of gross rents)
• other (__% of gross rents)

After expenses I would be left with __% of gross rents. This is what I would be living on as my major source of income.

Rather than suspending/waiving rents for those tenants impacted by the COVID-19 crisis I recommend that New York state issue rent vouchers to cover the rent payments of those impacted.

Here is a portion of the bill - 

Section 1. (a) Notwithstanding any other provision of law, rule or regulation to the contrary, any residential tenant or small business commercial tenant in the state that has lost income or has been forced to close their place of business as a result of government ordered restrictions in response to the outbreak of coronavirus disease 2019 (COVID-19), shall have all rent payments suspended for ninety days following the effective date of this act. Such residential tenant or small business commercial tenant shall not and shall never be required to pay any rent waived during such time period.