Small Landlords Feeling the Pinch

Introduction to the Crisis

Amid New York City’s housing crisis, many small landlords are feeling the pinch of rising maintenance costs, uncooperative tenants and what they view as a lack of support from city and state agencies. While the city’s rental market is often associated with high-rise towers and corporate landlords, small landlords still account for a significant share. Real estate experts told amNewYork that an estimated 30% to 50% of the market is owned by small landlords, defined as owners of buildings with 10 units or less. “Mom-and-pop” landlords who own just a few buildings are also common.

The Struggle is Real

New York City has long maintained a host of tenant-friendly laws, shaped by a history of notorious absentee landlords with large property portfolios often plagued by housing code violations—and, in some cases, linked to fatal fires, structural collapses, and other tragedies. But some argue the pendulum has swung too far in tenants’ favor, placing burdens on small property owners that discourage them from renting out their homes—ultimately reducing the supply of reasonably priced apartments.

The struggle for landlord housing aid

For instance, Marisol Owen’s story, in which she struggled to get rent from a delinquent Bronx tenant for years and said she received little help from city agencies, highlights systemic challenges that can deter property owners from renting out units. Owen and her husband Steffan rent out a three-family house in the Bronx. They grew increasingly frustrated with one of their tenants, Wesley Linares, who stopped paying rent in June 2021 after failing to renew his city-funded rental subsidies.

Nowhere to turn

Owen said she suffered emotionally and financially throughout the long legal process that ensued as she and her husband finally started a nonpayment eviction against Linares in October 2023. The rent ledger submitted to Bronx Housing Court shows that Linares did not pay rent for 27 months between July 2021 and October 2023 and owed a total of $49,950. Despite the obvious nonpayment issue, Owen said she was treated like the bad guy when calling city agencies and elected officials. She called the system “divisive,” pitting tenants against landlords even when the tenant is clearly at fault.

A ‘divisive’ system

Owen said she was empathetic to Linares’ need for extra help in following up on his responsibility. She herself has fairly severe ADHD and struggles to keep up with paperwork, she said. But as much as he was struggling, she was too — from the loss of income and from the daily stress of trying to manage the situation. “What about the small landlord who’s also marginalized?” Owen said. “They have to be fair to both parties.”

‘Housing court limbo’

Korchak, with the small landlord group SPONY, said the city put Owen “in an impossible situation.” As Owen discovered, New York City housing courts are strained with over 150,000 new cases each year, according to the Manhattan Institute for Policy Research. That means owners can wait years in “housing court limbo” without knowing when or whether they’ll recover any of the lost money — and by the time they even move to evict, they’re typically owed six months or more of back rent, said Korchak. “Once you’re in housing court, you’ve already lost,” she said.

Cash for keys

Today, Linares is still living at 886 Fairmount Place, as the courts gave him multiple chances to re-enroll for housing subsidies. He finally re-registered for CityFHEPS, and Owen said she now receives the correct rent each month. Although the Owens did receive a substantial portion of Linares’ back rent — some from the COVID-era ERAP program and some from CityFHEPS — Owen said she believes she is still missing about a year’s worth. More than anything, she said she wants Linares to move.

Conclusion

The struggles of small landlords like Owen highlight the need for a more balanced approach to housing policy in New York City. While tenant protections are important, they should not come at the expense of small landlords who are essential to the city’s affordable housing stock. By providing more support and resources to small landlords, the city can help ensure that they continue to provide affordable housing options to those who need them.

FAQs

• Q: What percentage of the New York City rental market is owned by small landlords?
  A: An estimated 30% to 50% of the market is owned by small landlords, defined as owners of buildings with 10 units or less.
• Q: What is the main challenge faced by small landlords in New York City?
  A: The main challenge faced by small landlords is the lack of support from city and state agencies, combined with rising maintenance costs and uncooperative tenants.
• Q: What is the "cash for keys" arrangement?
  A: The "cash for keys" arrangement is when a landlord pays a tenant to leave the property, often due to the difficulty and expense of evicting them through the courts.
• Q: How can the city support small landlords?
  A: The city can support small landlords by providing more resources and assistance, such as help with navigating housing regulations and access to legal aid.