Understanding Good Cause Eviction in New York

Good Cause Eviction is a proposed law in New York designed to protect tenants by preventing landlords from evicting them without specific reasons. Under this law, landlords can only evict tenants for “good cause,” such as not paying rent, damaging the property, or violating the lease. However, landlords cannot evict tenants simply to raise rent significantly or use the property for other purposes.

While this law aims to protect tenants, it introduces several challenges for landlords and homeowners, particularly those dealing with non-paying tenants or tenants paying low rents. Here’s how it could impact property owners:

How Good Cause Eviction Affects Homeowners

1. Loss of Control Over Property:

   Homeowners lose the flexibility to manage their properties as they see fit. They cannot remove tenants who are paying below-market rents or simply ask them to leave if they want to sell or repurpose the property.

2. Limits on Rent Increases:

   Even if property costs like taxes, insurance, and maintenance rise, landlords may not be allowed to raise rents significantly. This could lead to financial strain, especially for small landlords who depend on rental income.

3. Legal Risks and Costs:

   The process of proving “good cause” in court to evict a tenant can be time-consuming, costly, and stressful. This adds additional hurdles for homeowners trying to manage their properties effectively.

The Financial Impact of Non-Paying or Low-Paying Tenants

For homeowners with non-paying tenants or tenants locked into very low rents, Good Cause Eviction presents even greater challenges:

1. Decreased Property Value:

   When rental income is too low or nonexistent, the property becomes less attractive to potential buyers. Investors may see it as a poor investment, reducing its market value and making it harder to sell.

2. Limited Buyer Interest:

   Buyers looking for investment properties often prefer vacant homes or properties with market-rate tenants. Tenants with low rents or eviction protections can make the property less appealing and significantly narrow the pool of interested buyers.

3. Financial Strain on Owners:

   Landlords with non-paying or low-paying tenants may find it difficult to cover the mortgage, property taxes, and upkeep costs. This can lead to property deterioration, further reducing its value.

4. Challenges Selling the Property:

   Selling a property with tenants in place under Good Cause Eviction laws can complicate the process. Buyers may be hesitant to take on the legal and financial challenges of managing such tenants, leading to lower offers or prolonged time on the market.

Final Thoughts and Next Steps

If you’re a homeowner affected by Good Cause Eviction laws, non-paying tenants, or low rental income, selling your property off-market to a cash buyer may be a practical solution. Here’s why:

Sell As-Is, With Tenants in Place

Cash buyers specialize in purchasing properties as-is, even if they have tenants or other complications. This means you won’t need to worry about evictions or expensive repairs. However, it’s important to note that if a buyer takes on these challenges, it will come at the cost of a steep discount on the sale price.

To maximize the value of your home, you have two options:

1. Evict Non-Paying or Problematic Tenants:

   Hiring an attorney to navigate the eviction process can help you regain full control of the property, but it comes with legal costs and potential delays.

2. Secure Market-Rate Rents:

   If the tenant agrees to sign a new lease at market rates and can demonstrate they are a reliable, paying tenant, this will increase the property’s appeal to buyers and significantly improve the sale price.

While selling as-is is the fastest and most convenient option, addressing tenant issues beforehand allows you to command a higher price. The decision depends on your priorities, timeline, and financial needs.

Next Steps

If you’re considering selling your home off-market:

1. Evaluate Your Situation:

   Determine whether you’re willing to invest time and money to address tenant challenges or prefer a quick, hassle-free sale.

2. Research Cash Buyers:

   Look for reputable local buyers with experience handling tenant-occupied properties and the nuances of Good Cause Eviction laws.

3. Get a Free Consultation:

   Most cash buyers offer no-obligation property assessments and can provide insights into your options.

4. Weigh Your Options:

   Compare the potential benefits of selling as-is versus addressing tenant issues to maximize your property’s value.

Selling to a trusted cash buyer can be an excellent solution if you’re ready to move on without the stress of managing a difficult property. Be informed, weigh your choices carefully, and take the next step that aligns with your goals.

This information applies to New York and its cities, including Brighton, Rochester, and Syracuse. For assistance or questions, please call us at 585-299-9709 or visit the Brett Buys Roc Houses LLC website for more details