NY Small Landlords (poagny.com) Press Release: Landlords Are Pushed Into Taking Risks
NY Small Landlords conduct the July’s rent delinquency survey between 8/1 and 8/3.
July rent delinquency decreased compared to May and April. However, it suffers a small increase of 2% from June’s 39% to 41%. Members of NY Small Landlords now report they have a similar level of tenants without legal immigration status (42%) as April (47%). Roy Ho of NYSmallLandlords.com says July’s data now may reflect more workers are now returning to NYC from the pandemic exodus now that more businesses are open on site. Some landlords continue to plan to leave their vacant units vacant, albeit fewer. However, these landlords who plan not to leave their vacant unit vacant are the ones who have larger mortgage burden. Therefore, landlords with lower financial liability recognize the credit risk and decide not to take the credit risk, rather than a reflection of improvement in the risk environment of the rental market. The landlords with larger financial liability plan not to leave their vacant unit vacant simply because they cannot afford to leave them vacant and are forced to take a more aggressive risk appetite.
Although the percentage of landlords who have mortgages remain almost the same in these two months, logistics regression shows that is one of two critical factors for a landlord to decide not to keep a vacant unit vacant, contrary to the conventional wisdom that a landlord should avoid or reduce risk to maintain a business profitable.
With landlords taking more financial risk in the current legal risk environment imposed by the governor via moratorium which makes contracts unenforceable, a higher insurance premium due to the recent looting, a higher unemployment rate and a population reduction in NY, Roy Ho of NY Small Landlords expects an increase in foreclosure. In light of the expecting challenges facing landlords, NY Small Landlords will have a seminar on 8/9/2020 Sunday at 11am on line titled “How to Read Credit Report”.
NY Small Landlords (poagny.com) is an organization formed by small landlords where most are part time landlords and owners of a few investment properties.