Much attention has been given to the plight of tenants unable to pay rent in New York as a result of the COVID-19 pandemic, which spurred a "Cancel Rent" movement across many neighborhoods. While tenants' struggles should not be minimized or disregarded, New York City landlords, especially small ones, are feeling the financial pressure too.

New York's Limiting Legislation

The last two years have left landlords' heads spinning and hands wringing. In June 2019, massive revisions were made to the laws pertaining to various aspects of the landlord/tenant relationship, narrowing and eliminating certain rights and creating significant confusion. Since the onset of the pandemic in March 2020, court closures, stays of all evictions, and the slow rollout of government funds for rent relief have frustrated and burdened landlords with little to no rental income and few avenues to recoup their losses.

HSTPA. On June 14, 2019, the balance of power shifted with the passage of the Housing Stability and Tenant Protection Act (HSTPA), tipping decidedly in favor of tenants. While the HSTPA predominantly revised New York's rent regulation program by, among other changes, making currently regulated apartments permanently part of the program, locking in preferential rents, and capping recoupment for improvements, other sweeping changes have had significant impact on landlords of market rate apartments, cooperatives, and condominium unit owners. Statewide revisions affecting daily operations include limitations on security deposits and application fees, requiring written notice of late payments, eliminating pet deposits, and necessitating up to 90 days' notice to a tenant for rent increase or lease termination. Summary proceedings were drastically narrowed, limiting recovery to unpaid rent (excluding most other charges and fees), compromising collection of "use and occupancy" during the pendency of a proceeding, and imposing an affirmative duty on landlords to mitigate damages. Time parameters have been expanded, for example, requiring the return of security deposits within 14 days and giving courts discretion to stay evictions for a year (up from six months).