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Updated over 4 years ago, 09/10/2020

User Stats

387
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561
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Michael Gansberg
  • Investor
  • New York City, NY
561
Votes |
387
Posts

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

Michael Gansberg
  • Investor
  • New York City, NY
Posted

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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