Property management questions cover lease types, the landlord-tenant relationship, security deposits, and NY-specific rules like rent stabilization.
A gross lease means the tenant pays a flat rent and the landlord pays operating expenses. A net lease means the tenant pays rent plus some or all operating expenses (taxes, insurance, maintenance). A percentage lease adds a percentage of the tenant's gross sales to the base rent, common in retail.
In New York, landlords must hold security deposits in a separate interest-bearing account at a NY banking institution. The landlord must return the deposit within 14 days of lease termination, with an itemized statement of any deductions.
In NY, eviction requires a court proceeding. A landlord cannot use self-help eviction (changing locks, removing belongings). The process starts with a notice (pay or quit, cure or quit, or unconditional quit), followed by a court petition if the tenant does not comply.
Rent-stabilized apartments are subject to limits on how much rent can increase each year, set by the Rent Guidelines Board. Tenants have the right to lease renewal. Stabilization generally applies to buildings with six or more units built before 1974 in NYC.
1. In a triple net (NNN) commercial lease, the tenant pays:
NNN (triple net) leases require the tenant to pay all three 'nets', property taxes, insurance, and maintenance costs in addition to base rent. The landlord's net income is very predictable.
2. Under the NY Housing Stability and Tenant Protection Act (HSTPA) of 2019, the maximum security deposit for most residential rentals is:
The HSTPA of 2019 capped security deposits at one month's rent for most non-rent-stabilized residential apartments in New York State.
3. A landlord changes the locks on a tenant's apartment after the tenant falls two months behind on rent, without going to court. This is:
Self-help evictions, changing locks, removing belongings, shutting off utilities, are illegal in New York regardless of circumstances. The landlord must pursue formal eviction proceedings in Housing Court.
Gross Lease
A lease in which the landlord pays all property expenses (taxes, insurance, maintenance) and the tenant pays a flat rental amount.
Lease
A contract that grants the right to possess and use property for a specified period in exchange for rent.
Net Lease
A lease in which the tenant pays base rent plus some or all property operating expenses.
Property Management
The operation, oversight, and administration of real estate on behalf of the property owner.
Rent Stabilization
A New York State law that limits annual rent increases and provides tenants with lease renewal rights in qualifying buildings.
Security Deposit
Money collected by a landlord from a tenant at the start of a lease to cover potential damages or unpaid rent.
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