New York City landlords are raising concerns that calls for rent freezes, championed by organizations such as the Democratic Socialists of America (DSA), are jeopardizing the financial stability of family-owned businesses and long-term housing affordability.
Landlords Jose Tur and Natalia Bonanno, who own rent-stabilized buildings, stated that proposals to freeze rents and limit landlord investment returns ignore the increasing expenses associated with property ownership. These costs include mortgages, insurance, property taxes, and the maintenance of aging buildings, many of which were constructed in the early 20th century.
"It shows how flawed the system is in its entirety and how inefficient everything is here," Tur told Fox News, reflecting on the challenges faced by small property owners. He shared a personal anecdote about his grandfather, an immigrant who built a real estate business in New York, who was reportedly mugged by a tenant owing five years of back rent, leading to a stroke and his eventual death.
Bonanno echoed these sentiments, describing how her family's dream of property ownership is becoming increasingly difficult to sustain. She disputed claims that landlords are routinely achieving double-digit returns, arguing that such figures do not account for significant operational expenditures. "I don't know where they're getting 12% from," Bonanno said, referring to remarks by NYC DSA Co-Chair Gustavo Gordillo. "I know a lot of people refer to the NOI figure that came out recently, and that doesn't take into account our mortgage and insurance."
Gordillo had previously argued that landlords should not expect high investment returns and dismissed concerns that rent freezes would harm businesses. However, Tur and Bonanno maintain that these arguments do not reflect the realities of managing rent-stabilized properties.
Bonanno indicated that her family is considering selling most of their rent-stabilized buildings due to the uncertain financial future. "We hope we could stay in New York City and maybe invest in non-rent-stabilized properties, but if not, we'll have to just sell and purchase properties in other states," she stated.
Tur expressed a desire to continue his grandfather's legacy, viewing it as a responsibility to his family and long-term tenants. "I think it's the right thing to do on behalf of my family and what my grandfather built and also on behalf of the tenants," he said. "These are people that we've known for several years. It's not like we're a huge company that's not present. We're boots on the ground."