Q: I own a two-family property in Brooklyn. A tenant has not paid rent since March. I am losing considerable rental income in this large garden unit, and tenants have made no attempt to pay the rent late or negotiate a change or payment plan. But I count on these bills to pay mortgages, taxes and maintenance – I am not an institutional owner with deep pockets who can afford it. Do I have any legal resources? How can this go on for so long without relief?
AN: With so many New Yorkers suddenly unable to pay rent in the midst of the pandemic, state and federal lawmakers passed several eviction moratoriums, including the last one on December 28. But these laws and executive orders have provided little relief for homeowners who still have to pay to keep their buildings up and running.
The new New York law suspends almost all evictions for at least 60 days, including rentals that have already expired. Tenants who sign a document stating that they have experienced Covid-related difficulties can extend protection until May 1.
The law offers minimal relief to homeowners: it prevents creditors from foreclosing homeowners with 10 units or less until May 1, if they have experienced Covid-related difficulties. But they are still responsible for mortgage, tax, water and heating bills.
Try to negotiate some type of payment plan with your tenants. Legislation delays evictions, but does not eliminate late rent. You could sue your tenant for unpaid rent now, damaging his credit. Even if you don’t, a prospective building owner can sue you. David Skaller, a lawyer and partner at the Belkin Burden Goldman law firm in Manhattan, suggested using this as a negotiating point: if they strike a deal with you in particular, they can avoid the court and protect your credit.
If they have lost wages and cannot afford it, offer them information about unemployment benefits or other benefits. Perhaps they could pay a reduced rent in exchange for waiving previous debts, providing you with some income and providing them with some financial relief. You could offer to pay them to vacate. Of course, they may not be in a position to move, as a new landlord would not be in favor of tenants with this rental history. Or they may be nervous about the change during a pandemic.
In addition, you will have to wait and see if future relief projects will provide any help to help you weather this storm.
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