New York is about to kill quite a lot of landlords
Don Peebles, CEO of Peebles Corporation, argues that it will be at least 10 years for New York City to return to normal after a coronavirus pandemic lockdown.
Governor Andrew Cuomo and President Trump ensured tenants were protected by banning evictions during the pandemic, but officials did almost nothing for the owners. This is a welcoming disaster.
Many of these landlords, especially smallholders, have been struggling to make ends meet for months as the COVID crisis drags on.
Thousands of tenants have not paid the full rent. Others looking to escape the virus, violent crime and declining quality of life have fled, increasing vacancy rates and forcing owners to make concessions.
In the meantime, landlords’ bills – including property taxes and water and sewage charges – have risen without any let up. Cleaning and other costs have actually increased thanks to the pandemic.
ULTRA-RICH PREPARATION FOR POTENTIAL BIDEN TAX HIT
The latest nightmare: an imminent tax lien sale where the city sells the owners’ unpaid tax bills to a third party who then collects them along with an 18 percent interest charge. Waves of foreclosures could soon follow.
Cuomo had imposed a moratorium on deposit sales, which expires on Tuesday. That could mean on Judgment Day for owners. And not just small landlords, but also owners of private houses.
BIDEN TAX HIKE WOULD ACCELERATE EXODUS FROM HIGH-TAX STATES, EXPERTS PREDICT
Anyone who remembers the horrors of the real estate market in the 1980s knows where this is going: landlords unable to provide basic services, some land in total. Dilapidated and abandoned buildings spread the urban plague. The city takes possession of empty buildings – which takes it off the tax rolls and deprives it of important income.
The prospect has pushed some property owners and real estate attorneys to stop selling landlord debt altogether.
“Unless the city council ends tax breaks,” warns Joe Strasburg, president of the Rent Stabilization Association, “the real estate crisis of the 1980s will pale in comparison.” Nobody “will be spared.” And New York’s “property tax base, the largest producer of income in the world.” City will collapse “.
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Yes, the city needs a way to collect the taxes it owes. But these taxes can consume up to 50 percent of a landlord’s income. That is not sustainable even in good times.
Landlords need relief. If you don’t get it soon, you won’t be the only ones suffering.
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