State Specific Question About: NEW YORK (NY)

So, bought a multi family last month. Supposedly 4 reliably paying tenants at below market rents (anywhere from $100-$350/mo below market).

3 of 4 tenants paid day after we closed (on 1st of month), one asked for a week due to COVID etc.

3 of 4 tenants paid one month deposit (previous owner/LL had no rental contract/lease, no deposits) - we gave them 3 months to do this. One has not.

All 4 got renters insurance and sent us proof (we require this)

Now we are into the second month - 2 of 4 paid on time. The one who was late last month and doesn't have a security deposit is making a big fuss as to whether rent is due on 1st, on 5th (when late fees kick in) or on 10th (when last month's rent was actually paid). I said happy to make due date whenever, but then you need to pay 1st thru 5th or 1st thru 10th etc. After much back and forth, finally paid this month's rent. Then complained about worn deck, slow drain, "you are mean" etc.

I'm inclined to say see ya, don't let door hit you in the ass.

Current state law says you have to give 90 day notice even though no contract (NYS passed some very LL unfriendly laws in 2019) and I have drawn up as "sorry you aren't happy, terminating your tenancy" letter. Hubby wondering if I am being a bit harsh. They pay the second least of the 4 for equivalent apartments.

Thoughts?

And when to start pressing tenant (who does have deposit, was on time with 1st month but no payment yet here on 1st day of 2nd month)?

We normally vet tenants very thoroughly and have mostly had great tenants, everyone pays on time, mostly via auto bank deduct.

This is a class B property in an up and coming area (as in, we just rented out another class B/C rental for $150 more a month and had 108 inquiries in 10 days - I'm kind of chomping at the bit to raise rents, but seemed heartless during COVID, yadda, yadda so was going to wait a year).

Odds are you're going to throw them all out eventually, except for the consistent payer. So start pacing them so that you don't empty the place out.

I have had five inherited tenants, The two I still have are the reason I bought the houses because I knew I wanted them.

CS, class b property, class??? Tenant?

I'm fuzzy in mtm rules but believe you can't raise rent more then 4.9% in a year?

You also cannot do as Jerry suggests and apply rent toward security or damages etc.

You know they are not late w rent till the 6th? And security can't be greater than 1 month rent.

I'd say softly remind them that rent is due on the first, esp. If they were used to another date. BTW if you accept cash you have to write receipt on the spot w tenant info and apt.

Yeah NY is very LL unfriendly now.

If they have been there >1 yr, require 60d notice, >2 yrs needs 90d notice. Even if no lease/MTM.

Also now illegal to use/ask about eviction history.

I had multiple people ask to pay year rent up front on a recent turnover but that is probably illegal now. Can’t take more than one month security and first month rent. No additional pet deposit, no last month rent, no taking extra deposit on borderline qualifying folks (some people have no credit hx bc they have no debt, are young, came to country recently, but have lots of savings)

It’s becoming quite a chess game here to pick the right tenants and stay on the good side of the law.

Current bad tenant can’t pay more and has PITA tendencies.

One tenant can’t pay more but is rock solid - below market but has lived there for 40+ years!

Other two could pay fractionally more, but are closest to market.

There were many recent applicants to a lesser property we recently turned over (at a rent slightly higher than what these folks are paying) who could easily pay $200-300 more monthly than what current tenants paying.

1st Multi I bought I cleaned out the tenants as soon as possible including a 25 year resident

They thought they owned the place

Next 8 plex - just 2 residents in place at closing

CS I'm pretty sure you can't raise rent more then 5% w/out demonstrating cause (good luck w that).

I didn't read anything that says you can't collect last along w first month's rent.

You are correct about not being able to collect rent in advance.

Ken that was my reading of the new law but I stand corrected. 226C had written notification required if rent increase more than 5%. There was a lawsuit suing a ll/developer in Westchester or the Hudson Valley who raised rents more then 5% and tenants saying it was capricious and local authorities saying they should show cause.

What section says no last month rent? 7-108a) says deposit or holding fee cannot exceed 1 months rent. b) details what deposit can be kept to cover (unpaid rent, damages, moving and storing belongings. c) ll must offer walk through before occupancy and if conducted both parties sign written condition agreement

Ken that was my reading of the new law but I stand corrected. 226C had written notification required if rent increase more than 5%. There was a lawsuit suing a ll/developer in Westchester or the Hudson Valley who raised rents more then 5% and tenants saying it was capricious and local authorities saying they should show cause.

What section says no last month rent? 7-108a) says deposit or holding fee cannot exceed 1 months rent. b) details what deposit can be kept to cover (unpaid rent, damages, moving and storing belongings. c) ll must offer walk through before occupancy and if conducted both parties sign written condition agreement