Written by Louis Fournier, CPM, President

 

There has been a fair amount of discussion both for and against the new Tenant legislation that was recently adopted by New York State. No question the legislation is intended to provide protection for tenants that find themselves at the mercy of a bad Landlord, but has it gone too far?  It has put the “good” and “bad” Landlords in the same category. In the end, this may penalize some of the Tenants the legislation is intended to help.

The permitted criteria for rental applications has been watered down so much that many of the tools Landlords were able to use to screen Tenants are no longer allowed.

 

HONEST REFERENCES

 

One of the most damaging changes to the legislation is the limit placed on providing and obtaining honest references for Tenants.

 

EVICTION HISTORY

 

Landlords cannot deny an application based on the Tenant’s eviction history. This is not limited to evictions for not paying rent. If the Tenant has been evicted for any type of poor behavior, prospective Landlords may not use this information when reviewing applications.

 

SCREENING PROCESS

 

The screening process is the most effective tool to create a safe and vibrant rental community. Eliminating some of the critical screening tools could result in Landlords establishing higher milestones for approval, such as credit and income to offset the elimination of credible Landlord references. This could actually limit some of the options for housing for Tenants that do not meet the stricter income and credit requirements.

 

CHANGES TO THE EVICTION PROCESS

 

The eviction process has also been revised to provide tenants with additional time to respond to evictions and presumably cure any default. In the past, tenants that have violated their lease could be given a three-day notice to cure the default whether it is monetary or related to other types of lease violations.

The new legislation extends the cure period to fourteen days. Additional extensions may be granted by the court which could extend the process further. When all other avenues to work with the tenant have been exhausted, most responsible Landlords use evictions as a last resort. The new legislation may cause Landlords to commence evictions sooner rather than negotiating an out-of-court settlement.

 

FURTHER RESTRICTIONS

 

In addition to the significant changes to the legislation described above, further restrictions on security deposits, credit references, application fees and the ability to recoup attorney’s fees have been changed drastically.

 

IMPACT ON SUTTON

 

For us, the full impact of the new legislation for our property managers remains to be seen.  We fully support and endorse providing safe and affordable housing in the community.  However, there needs to be middle ground when establishing Landlord-Tenant legislation to avoid creating a system that limits Landlord’s ability to use common sense when addressing the way they are able to operate their business and maintain their apartment communities.

 

For further information on what changes have been adopted please see the link below.

 

https://www.law.com/newyorklawjournal/2019/07/09/impact-of-the-new-nyc-rent-law-on-landlords-and-tenants/?slreturn=20191015141142

 

 

 

 

 

 

 

 

 

 

Written by: Matt Buroni 

 

Purchasing multi-family investment properties are a lucrative investment option and a great way to put your money to work in an asset that has the ability to pay you a return every single month.  A commercial real estate broker will prove to be a valuable relationship that will help maximize your return, with no cost to you. The following are four reasons why you need a commercial real estate broker when buying multi-family investment properties.

 

Saves Time

 

Most of us have jobs and obligations that leave us with little time to look into various investment property opportunities. Commercial real estate brokers are constantly looking for new properties to sell and buy for their clients. Based on specific investment needs, they can provide you with the best options. Brokers should have a list of available properties that they can immediately present to you. They are able to find new opportunities in your given market before you can.

The most time consuming part, especially now, is finding good investment properties. Good investment properties are hard to come by and the really good ones are gone before you even know about them. For this reason, it’s better for you to have a professional on your side working to find you deals.

 

Greater Knowledge

 

If you are just starting out in the real estate investment world and don’t know where to begin, it is often overwhelming to find the first place to start. A commercial real estate broker will bring you through the process, as they are always going through the transaction process on multiple different properties at a time.

An agent can apply their extensive knowledge on every aspect of a potential deal. There could be an issue with the financial performance of a property or something wrong with the physical property itself that you might not immediately pick up. Your broker’s job is to act in your best interest. They want to make sure that you get the best deal you can. Take advantage of the knowledge a broker has let them guide you in your decisions.

 

Better Price

 

Now that you and your broker have found the property that you are going to further pursue, what should you pay for it? You don’t want to pay too much and lose money on the deal in the long run, and you don’t want to offer something that will offend the seller. Again, you can use the expertise of the broker and come up with an offer price that will start the negotiation process. Your broker has seen many deals and knows exactly how to act to get you the best price possible. Once you have an offer set, your broker will guide you through responding to any counter offers that may come from the seller until you are signing the papers at the closing table.

Your broker will be the one that is responsible for contacting and directly communicating with the seller or the seller’s broker. This means that you actually do not have to speak with anyone else during the process, except for your broker.

 

No Fee

 

The seller pays a commission on the sale of a property, so your broker will be getting paid by the seller of the property as they work for you. If there is a listing broker representing a seller, then your broker will get an agreed upon percentage of the total commission paid by the seller. When you take the cost out of the equation and add in the benefits that you will receive, there is absolutely no reason why you should not have a broker working for you.

 

If you utilize a licensed commercial real estate broker for the four reasons listed above, you are likely to have much more success along your investment journey. Building a strong and long lasting relationship with a broker is one of the best ways to begin. Not only will you receive the mentioned benefits, but you will receive them at no cost to you.  If this seems like it is too good to be true, give a local agent a call and ask them how it works. You will not be disappointed with what you find!