Having recently hosted an incredibly successful information and training session on the new rental laws that recently went into effect in New York City for Oxford agents, we wanted to share some of the ways these new laws may have an impact in your life or your business.
With a focus on keeping New York City an affordable place to live, the new rental laws were passed in June of 2019 by the State of New York. 65% of New York City’s residents rent. With a figure that high, these laws will have a dramatic impact on the real estate industry and how business is conducted.
One of the biggest changes to take effect was that security deposits are limited to being one month’s rent. Additionally, landlords have 14 days to return security deposits to their former tenants once an apartment is vacated. These changes will make moving into a new apartment easier for tenants and ensure that they are getting their security deposits back quickly.
With rent rates always inching higher, new regulations stipulate that if the landlord is planning on raising the rent more than 5% on a tenant, they must give at least 30 days notice. But if the tenant has a lease for one to two years, the landlord must give them 60 days notice, or 90 days notice if the tenant has a lease for two years (or has lived in the apartment for at least that long).
Evicting a tenant and a tenant’s right around eviction has been strengthened with the new laws. Now, judges are able to postpone an eviction for up to one year if a tenant is having trouble finding a new home and housing courts must take into account how an eviction will affect a tenant’s health and well-being.
The new legislation makes unlawful eviction a misdemeanor that could result in a $1,000 - $10,000 fine and the blacklisting of tenants by landlords is prohibited. Tenants have additional time to address lease violations; previously they had 10 days and now have 30 days to correct infractions.
Many of the new laws are directed towards rent-controlled or rent-stabilized tenants, whose previous protections were set to expire in June 2019. The new legislation gives those tenants greater protection than before, including the inability of landlords to revert the apartment to market rate once the rent increases to $2,774 and the tenant’s income exceeded $200,000 for two consecutive years.
Prior to the new legislation being passed, when landlords made improvements to buildings they could impose a 6% rent increase on their tenants. The rent increases from major capital improvements has now been capped at 2% and there are new restrictions on those projects.
While this is an extensive list of how the new laws will affect residents in New York City, it isn’t complete. The sweeping legislation is focused on keeping New York City affordable and providing stability for current residents.
Oxford agents are ready to help you find your new home in New York City and can help you navigate and understand the intricacies of the new laws. When you’re ready to make your move, we’re ready to help. Let’s talk today and find your new home in New York City!