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I've spoken with a large number of real estate professionals, including a group of around 30 real estate agents and lawyers today, and it seems that the consensus is that Albany didn't really bother consulting the real estate community at all with the new rent laws enacted earlier in 2019.
Perhaps the laws were well-intentioned, but it seems to be hurting the very people it was supposed to help. For example, because landlords can't now charge more than one month in security deposit, they essentially have become even more, overly careful when it comes to tenant selection and screening.
Some landlords are trying to protect themselves by requiring a guarantor, or perhaps a letter of credit from a bank as a way around this. Same thing with co-op boards who can no longer demand months or even years of maintenance payments to be put in escrow by prospective buyers.
Renter's insurance may help some, but unclear on how much. Perhaps one of the only real beneficiaries of this new law are the title companies like Assured who have now conveniently rolled out services to "guarantee" leases on behalf of tenants.
In any case, we've heard anectodally from lots of real estate investors who've just given up and throw up their hands, as in this is the last straw.
Perhaps the laws were well-intentioned, but it seems to be hurting the very people it was supposed to help. For example, because landlords can't now charge more than one month in security deposit, they essentially have become even more, overly careful when it comes to tenant selection and screening.
Some landlords are trying to protect themselves by requiring a guarantor, or perhaps a letter of credit from a bank as a way around this. Same thing with co-op boards who can no longer demand months or even years of maintenance payments to be put in escrow by prospective buyers.
Renter's insurance may help some, but unclear on how much. Perhaps one of the only real beneficiaries of this new law are the title companies like Assured who have now conveniently rolled out services to "guarantee" leases on behalf of tenants.
In any case, we've heard anectodally from lots of real estate investors who've just given up and throw up their hands, as in this is the last straw.