NY State just passed some really intense new rent control laws. They will primarily apply to NYC but other cities are allowed to adopt them. They basically got rid of every single exception to the old laws.
One old rule was if the tenant made 200k+ two years in a row you could raise the rent. Not anymore.
Another rule said if you initially charged less than allowed you could later go up to the controlled amount. Not anymore, your initial discount is fixed forever.
Also no more owner-move-in evictions without proving “exceptional hardship.”
No converting apartments to condos unless the majority of tenants buy units, so basically never.
SF’s rent control looks quite restrained by comparison. I think SF voters would pass similar rules if the state allowed them, and that could happen soon, either now or in 2 years when the legislature probably gets even more liberal. It is a big risk to buy a rental property in SF for this reason. Santa Monica as well.
With laws like this, it can make sense to either AirBNB, only rent to wealthy foreign students who are unlikely to stay long term, or just keep a unit empty while it appreciates.
