In June of 2019, New York state put into place new rent legislation known as the “Housing Stability and Tenant Protection Act of 2019”, creating the most significant changes to Landlord-Tenant law in New York in almost a century. These new laws make difficult and expensive for landlords and property managers across the state to comply with its new regulations, further raising administrative costs and making it harder for low-income residents to obtain housing throughout the state. 

One new requirement. 

One specific clause in the new laws is that late rent notices must be sent by certified mail. The new law states, “If a lessor, or an agent of a lessor authorized to receive rent, fails to receive payment for rent within five days of the date specified in a lease agreement, such lessor or agent shall send the lessee, by certified mail, a written notice stating the failure to receive such rent payment.” (P46 L45) 

The breakdown. 

In layman’s terms, you must now send a certified letter to a resident notifying them that the rent is late after five days, emails or texts are not enough even if the resident has acknowledged them. 

What does this mean for property managers? 

Added logistical burden and expense. 

Another new requirement. 

Property managers are required to extend notice-to-quit time. The clause states that, “a special proceeding may be maintained under this article upon the following grounds: the tenant has defaulted in the payment of rent, pursuant to the agreement under which the premises are held, and a written demand of the rent has been made with at least fourteen days’ notice requiring, in the alternative, the payment of the rent, or the possession of the premises, has been served upon him.  (P47 L56) 

The breakdown. 

In the past, the first step in the eviction process was to officially give a notice to a resident in the form of a 3-day notice, notifying the resident in writing that they had three days to pay in full or vacate the premises, or the Landlord would continue with the eviction process.  This grace period has now been extended to 14 days. 

What does this mean for property managers? 

One of the best approaches that a property manager can take to minimize the risk of eviction is to have policies in place to ensure residents are strongly encouraged to never fall behind in rent.  If a resident can withdraw for several weeks before facing consequences, there is little hope that the resident will ever be able to catch up, and costly legal action must be taken. 

By comparison, when residents are immediately reminded of their rental responsibilities and penalties are enforced within a week, residents are far more likely to take action.   

We spoke to several property management companies in New York to see how they are adjusting to the new changes. 

One Property Management firm in New York reported that it took one individual eight full working days, to run reports, produce, print, and mail their certified letters.  

Another firm reported that they turned over three different individuals in the position of sending their notices because of how tedious the process was. The final person doing it was begging for a change. We reduced their three-day process into something much more efficient. 

Some companies are not serving the certified notices at all, so the cases against the delinquent residents are being dismissed because they weren’t delivered in the correct format. 

We also found that some property management companies are delivering certified notices for some, but not doing it for everyone, simply because they can’t keep up. 

How we can help. 

ClickNotices has developed a software to support landlords in their rent collections efforts. With a few simple steps, our platform can generate and mail late rent notices and provide transparency for your whole team. Through our cutting-edge software, we can easily deliver New York required certified mail notices and 14-day notices as well as friendly reminders via SMS message and email.   

We’re passionate about saving our customers time. That’s why we’ve created a platform to help reduce your burden. Together, we can give valuable time back to your property management team.