Am I a callous landlord? (NY State Covid eviction ban)

Am I a callous landlord? (NY State Covid eviction ban)

Investor · New York City, NY · Member since 2015 · 388 posts · 563 votes

For those out of NY State, feel free to weigh in. Cuomo has extended the eviction ban, which in my layman's opinion is a public taking of private property, usually requiring the process of eminent domain. I understand the need for the eviction ban, but what I don't understand is why the brunt of it falls on such a small subset of the population. 

In NY State, Governor Cuomo banned evictions for about 6 months(with one more month to go, unless it's extended further.) Cuomo has taken the landlord's capital(in the form of rental housing) by government order, with no promise or suggestion of repayment. I have emailed Cuomo's office about this, and only gotten a form response about where I may obtain loans to help(loans which of course need to be paid back, while the back rent will never be paid back.) I am sure that if the government broke into the checking accounts of hedge fund managers(or other people generally richer than I) and appropriated those funds to pay the rent of people who are unable/unwilling, the public uproar would be palpable. But when the government does the same to landlords, it seems the public response has been...crickets?

At present(and since March 2020,) my tenants owe me back rent in the amount of almost $100,000. All the tenants in what I'll call the "Platinum Class," or those owing me $5k or more, haven't yet sent a "thank you" note to me for providing them with free housing. The tenants in the Gold and Silver Classes(owing less but still quite a bit) also have yet to thank me. 

So I have finally taken the plunge and contacted an attorney about a potential class action suit against NY State. Which brings me to the initial question- am I a callous landlord? Or am I in the right?

(please note- let's avoid Democrat v. Republican discussions here, reasonable people can find fault on both sides and this is about the world we actually live in, not the world we'd like to live in.) 

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  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    6y

    @Michael Gansberg you are no callous at all. Sorry for your losses but Cuomo's eviction ban was already upheld.

  • Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
    6y
    Originally posted by @Bjorn Ahlblad:

    Sorry for your losses but Cuomo's eviction ban was already upheld.

    The liberal judge said they filed it in the wrong court and she took at extremely narrow view of the law. There are lots of potential reasons for overturning the ban, but she choose to look at basically none of them. By her wrong line of thinking, the ban could be made permanent since the rent is still technically due. 

  • Investor · New York City, NY · Member since 2015 · 388 posts · 563 votes
    6y

    Thank you @Greg M. and @Bjorn Ahlblad - I see that lawsuit now(I linked it below.) I spoke to an attorney an hour ago, I'll continue to research before deciding whether to move ahead. 

    https://therealdeal.com/2020/0...

  • Real Estate Investor · Chattahoochee, FL · Member since 2014 · 133 posts · 107 votes
    6y

    I wouldn’t say callous either. 100K is no small amount of money to ordinary mortals. It would have been better if all sides were able to contribute to the policy. It seems no consideration has been given to what the property owners will do when this is all over. OK, we have a moratorium on our mortgages, but unless there is some relief for property owners on the back side there will be a massive foreclosure market. I’m not sure that this won’t happen either way as the normal foreclosures that would have hit the market aren’t processing currently. When you add what will happen to people who didn’t pay during the pandemic (assuming no relief from legislators) it will be a massive influx of properties into the market. If you have access to capital I think that would be the time to buy. I never thought we would see another market like the one that started in 2008, but now I’m not so sure. 

  • Bonnie LowPro Member
    Lender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes
    6y

    How has this situation changed for you, if at all, now that the Trump administration and CDC have further extended the eviction moratorium through the end of the year? In other words, has it shifted from a state action to a federal action and therefore you'd have to fight it at that level?

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