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What does New York’s Commercial Tenant Protection Act Mean for Property Owners?
Living and working in New York is many people’s dream. For decades, aspiring entrepreneurs, artists, and others have traveled to the Big Apple to test the axiom that “if you can make it there, you can make it anywhere.” The City that Never Sleeps is an eternal draw to those aspiring for new and better lives for themselves. The storefronts and shops of New York provide the space and opportunity for people seeking their fortune. The landlords and real estate owners of New York are no exception.
By providing those same entrepreneurs and artists the opportunity to pursue their dreams, New York landlords are fulfilling their own. In some situations, renters may not be fulfilling their end of the bargain. They may be behind on rent, damaging the space, or engaging in other behavior that makes them unsuitable tenants.
However, New York laws have made it difficult for landlords to protect themselves against abusive tenants. This is especially true under the Commercial Tenant Protection Act. This is why if you or a loved one are a New York landlord struggling with a problematic tenant, you must contact an experienced real estate attorney.
What is the New York Commercial Tenant Protection Act?
The New York Commercial Tenant Protection Act is a law meant to protect tenants against retaliatory landlords. It limits what landlords can do regarding their tenants and their leases. Among other things, the New York Commercial Tenant Protection Act includes limits on, but is not necessarily restricted to:
- Rent Increases
- Evictions
- Foreclosures
The Commercial Tenant Protection Act was passed to ensure renters weren’t taken advantage of by predatory or abusive landlords. This was a significant consideration in the wake of the COVID-19 pandemic. It was essential to ensure renters impacted by the pandemic had the same opportunities and protections as landlords.
However, the law also potentially allows unscrupulous tenants to take advantage of their landlords. Because the law makes it challenging to deal with difficult tenants, landlords may find themselves in a challenging position.
What Does the New York Commercial Tenant Protection Act Mean for Landlords?
Under the Commercial Tenant Protection Act, a landlord must meet specific criteria to take action against a tenant. If a landlord wishes to evict a tenant, particularly a small business, they must be able to demonstrate that they have cause for the eviction. This includes being able to provide significant lease violations or failure to pay rent over some time.
The Act also makes it more challenging to raise rent on tenants. This could impact a landlord’s operating costs and ability to profit from their real estate. In some instances, it may even mean landlords are forced to begin operating at a loss.
The Act also places a burden on landlords in cases in which tenants allege harassment. The Act recognizes that some landlords may attempt to make circumstances difficult for their tenants to get them to vacate the premises rather than attempt to evict them. If a tenant alleges a landlord is attempting to harass or pressure them into leaving, the tenant can take legal action against the landlord. It then becomes the landlord’s legal burden to defend themselves in court. If the landlord loses the case, they may face severe penalties for violating the Act.
What Happens if Someone Violates the Commercial Tenant Protection Act?
The State of New York has imposed stiff penalties for landlords who violate the Act. A landlord found to have harassed a tenant faces a mandatory fine of up to $10,000. The court may also order the landlord to pay any attorney fees or court costs incurred by the tenant.
In addition to a fine, the court may place a restraining order on the landlord. This can seriously impede a landlord’s ability to conduct further business with their own tenants, including collecting rent. This can lead to a potentially challenging situation in which a landlord is forced to continue renting to a tenant who has taken them to court. This may lead the tenant to believe they have an “upper hand” in their dealings with a landlord. This could lead to them engaging in obstructive behavior, including being late with rent or not properly caring for the property.
After winning a court case, a tenant may believe they are “untouchable” and have the protection of the courts. This is why, if you are a landlord in New York and having difficulty with a tenant, you must contact an experienced real estate attorney.
What Should I Do if I’m a New York Landlord Having Problems With a Commercial Tenant?
The New York Commercial Tenant Protection Act is meant to protect business owners from unscrupulous landlords. It is not intended to protect irresponsible or exploitative tenants from abusing their landlords. It is also not meant to penalize individuals just for being landlords in New York. Because the law was passed in favor of tenants, landlords may be placed in a difficult position if a tenant decides to take advantage of the law. This is why if you or a loved one are a commercial landlord in New York having difficulty with a tenant, contact an experienced Real Estate attorney at Rolo Law.
The attorneys of Rolo Law are well-versed in the Commercial Tenant Protection Act. We know all the ins and outs of the law and know how to protect landlords against exploitative tenants. We know most landlords do their best and that sometimes tenants can be intentionally difficult, and we don’t believe a landlord should be forced to deal with unruly tenants. Landlords should not have their hands tied by a law that personally and professionally harms them.
Being a landlord is a serious responsibility. It shouldn’t mean being punished for providing space to a small business. If you or a loved one are a commercial landlord in New York facing difficulties with a tenant, call Rolo Law immediately at 845-668-4774.
