[ad_1]
Q: A yr in the past, once I utilized for a market-rate house within the Bronx, the owner required that I get a lease rental bond from a bond firm. I’ve a superb credit score rating, however the agent mentioned my liquid property have been beneath the required threshold. Along with the bond, I needed to give them first month’s lease and a one-month safety deposit earlier than transferring in. The bond value me $1,000. I’ve been paying my lease on time via the corporate’s app, however now they’re telling me that I must renew the bond for a brand new two-year lease. I’ve signed the lease; the owner has not. If I say no to the bond and may’t work one thing else out, can I be evicted?
A: A lease rental bond ensures a tenant’s lease cost obligation. The bond covers losses for the owner if a tenant fails to pay the lease; the guarantor then recoups the cash from the tenant. It might appear pointless, however your landlord can require one.
“The owner is inside its rights to impose the requirement, and the author is with out recourse to reject it,” mentioned Nancy L. Kourland, an actual property lawyer with Lasser Legislation Group. “Furthermore, it’s fairly seemingly that the owner won’t countersign the renewal lease with out proof that the author bought a lease rental bond.”
Many landlords depend on third-party guarantors fairly than having tenants ask household or pals to behave as guarantor. Tenants whose earnings fluctuates or who’ve little New York Metropolis rental historical past, a low credit score rating, a brand new job, or inadequate earnings and property usually tend to want a lease rental bond.
Requiring a assure from an establishment turned extra in style when a state landlord-tenant legislation, the Housing Stability and Tenant Safety Act of 2019, took impact, Ms. Kourland mentioned. The legislation permits landlords to gather solely the primary month’s lease and a safety deposit equal to 1 month’s lease at the beginning of the lease.
For those who don’t get a bond, the owner might start eviction proceedings after your present lease expires. “Nonetheless, if the price of acquiring the bond is extreme, a courtroom might discover it to be ‘unconscionable,’ and due to this fact unenforceable,” mentioned James B. Fishman, a lawyer in Manhattan who represents tenants.
You may attempt to negotiate a compromise along with your landlord. For instance, supply to pay for the rental bond for the primary yr of the lease, and if all of your funds are well timed, the owner would waive the requirement for the second yr.
For weekly e mail updates on residential actual property information, enroll right here.
[ad_2]
Source link
