New York State recently passed the Housing Stability and Tenant Protection Act of 2019, which includes a variety of rent regulation changes. These changes have broad implications for landlords, such as imposing new limits on how much landlords can charge for security deposits, background checks, and late payment fees.
While City landlords were infuriated by these provisions of the recently enacted Housing Stability and Tenant Protection Act which predominantly apply to long term urban rentals, North Fork and Hampton landlords should be aware that important aspects of the legislation apply statewide and effect them directly.
Buried away in the final bill signed by Governor Cuomo are two provisions that will significantly affect real estate rentals on the East End of Long Island. The first item pertains to the amount of security deposit a landlord could hold. “No deposit or advance shall exceed the amount of one month’s rent under such contract.” Historically landlords have collected rent in advance for a seasonal rental and now it is not possible with the new legislation. One article I read suggested that landlords could use Letters of Credit to work around this.
The other troubling item effecting the East End is a provision requiring deposits to be returned to tenant within 14 days. “Within fourteen days after the tenant has vacated the premises, the landlord shall provide the tenant with an itemized statement indicating the basis for the amount of the deposit retained, if any, and shall return any remaining portion of the deposit to the tenant. If a landlord fails to provide the tenant with the statement and deposit within fourteen days, the landlord shall forfeit any right to retain any portion of the deposit.
Landlords must be aware of these new regulations so as not to violate the law or their pockets. Click here to read a summary about the NYC Rental law of 2019
