NY Rent Control Bill Would Hurt Residential Real Estate Sector
Real Estate attorney Stuaft Saft published an article in Law360 analyzing recently proposed legislation that would fundamentally change how real estate owners in New York could treat occupants of space regardless of their legal right to be there. The proposed bills require landlords to demonstrate good cause to evict a tenant or occupant before a judge — and failure to comply with the terms of a lease would not necessarily be enough. In addition, the bills effectively create rent control for almost all residences in the state by providing that tenants have a right to a renewal lease with rent increases of no more than 3 percent. However, Mr. Saft notes that operating costs and real estate taxes have increased steadily by far more than 3 percent each year. Overall, he says, the legislation would damage the economic viability of residential real estate and lead to less housing being built.