A recent law passed in New York, which came into effect on April 20, 2024, introduces obstacles for landlords seeking to remove troublesome tenants from rental properties. The legislation, known as the Good Cause Eviction Law, mandates that landlords must either show that they are exempt from the law or provide "good cause" reasons in order to evict tenants who are not regulated by rent stabilization or control.

Daniel Phillips, a real estate litigation expert, explained that landlords must navigate this law carefully while screening potential tenants to avoid potential legal issues. Even with thorough screening measures, such as background and credit checks, landlords may still end up with tenants who create problems. The law specifies that landlords cannot evacuate a tenant without a legitimate reason that falls under the stipulations of good cause or exemption, leading to potential long-term tenancy, even in cases of nuisance or non-payment of rent.

Certain properties are exempt from the Good Cause Eviction Law, particularly homes owned by landlords with 10 units or fewer, or properties provided based on employment that is no longer valid. Additionally, the law includes exemptions for newer homes, those already regulated under different laws, and various types of seasonal and mobile homes.

Phillips noted that the law aims to protect tenants who might be difficult without actually qualifying as problematic, making it challenging for landlords to address their issues effectively. The new law caps annual rent increases at 8.82%, further complicating landlords' abilities to manage their properties amid tenant disputes. He emphasized that this could lead to a situation where landlords find it increasingly difficult to enforce lease terms or remove tenants, paralleling how squatters are often protected under various legal frameworks.