How New York Tenant Laws Create Higher Costs and Risk for Long Island Landlords

Written by:

Rudi Davis

Date:

23 Feb 2026

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Long Island landlords face a significant financial risk: eviction timelines in New York can extend from 12 to 18 months. During that period, property owners may receive no rental income while continuing to pay mortgage obligations, legal fees, and repair costs.

Jeffrey Memisha, a licensed sales associate at Realty Advisors Inc., says New York’s tenant-favorable legal framework exposes landlords to risks not found in most other states. If a tenant stops paying rent, the legal process to remove them can take a year or more. During that time, landlords must continue to pay the mortgage, cover court costs, and address any property damage once the tenant leaves. “You’re stuck paying the mortgage for twelve to eighteen months, plus your court fees, plus whatever fees you have to pay to fix the house after,” Memisha says.

Investors on Long Island identify the extended eviction timeline as a major risk. However, rental listings and published cap rates often do not reflect this exposure. As a result, new investors may underestimate the potential financial impact.

Geographic Risk and Investment Calculations

The risk for landlords on Long Island stands in stark contrast to states with more landlord-friendly laws, where eviction can be completed in a matter of weeks. In those markets, landlords who present a lease to local authorities can often have non-paying tenants removed quickly, minimizing financial loss. In New York, by comparison, the process is slow and expensive.

This difference in legal frameworks creates a geographic risk premium in Long Island that investors must factor into their calculations. Memisha notes that experienced investors typically factor in the potential for a year or more of lost rental income, legal expenses, and property repairs when assessing deals. “The investors are aware of that, and they’re careful,” he notes.

However, Memisha warns that less-experienced investors may underestimate this risk, focusing on surface-level metrics such as rent rolls and cap rates without understanding the hidden costs embedded in the legal environment.

How Tenant Protection Laws Influence Rental Pricing

One direct outcome of New York’s tenant protection laws is upward pressure on rental rates. Landlords, anticipating the possibility of a lengthy eviction and the associated costs, build this risk into their pricing. Memisha argues that this is a key reason why Long Island rents remain high. “They have to compensate for that,” he says, referring to the potential for extended periods without rental income.

The logic is straightforward: if there’s a chance a landlord could go twelve to eighteen months without receiving rent, that potential loss must be spread across all leases. As a result, even tenants who pay reliably end up shouldering part of the cost through higher rents.

This dynamic means that policies designed to protect renters can, in practice, make housing less affordable overall. The risk premium becomes embedded in the market, raising baseline rents and making it more difficult for new entrants to compete unless they, too, price in the risk.

Increased Tenant Screening Practices

In response to these risks, landlords and property managers are tightening their screening processes. Memisha describes how his firm takes additional steps to vet both buyers and tenants, including verifying financial credentials, contacting mortgage professionals, and ensuring only qualified applicants are approved. “We’re very diligent when we’re working with people and the people who we decide to work with,” he says.

This approach aims to reduce the likelihood of costly, drawn-out evictions by filtering out tenants who may be unable to pay or who have a history of payment issues. However, this strategy can also make it harder for renters with imperfect credit or unstable employment to secure housing, even if they are otherwise responsible tenants.

The result is a market where landlords prioritize risk mitigation, sometimes at the expense of broader housing access.

Policy Considerations and Market Effects

The experience Memisha describes raises questions about the broader effects of tenant protection policies. While the intent is to shield vulnerable renters from rapid displacement, the practical outcome is often higher rents and reduced investor interest in the market.

Policymakers must consider whether the benefits of extended eviction timelines outweigh the costs borne by renters and the chilling effect on investment. Memisha’s perspective is clear: the costs are real, measurable, and ultimately borne by tenants through higher rents and stricter screening.

Risk Management Strategies in the Current Market

For those who remain active in the Long Island market, the solution has been to adopt more rigorous underwriting and tenant selection processes. Memisha’s firm, for example, has minimized failed deals by thoroughly vetting every participant. “It’s very, very rare on my end,” he says of deal failures.

Still, there is uncertainty about whether this level of diligence can be replicated across the broader rental market. Many smaller landlords lack the resources or expertise to implement such extensive screening, leaving them more exposed to the risks inherent in New York’s legal environment.

Long Island Rental Market Outlook

Long Island’s rental market is shaped by policies that, while well-intentioned, have introduced high hidden costs for landlords and, by extension, for tenants. The extended eviction process is now a defining feature of the local investment landscape, requiring landlords to raise rents and implement tougher screening, or risk substantial financial losses.

For investors, understanding and accurately pricing this risk is essential for survival in the market. For tenants and policymakers, the lesson is that legal protections come with tradeoffs — often in the form of higher housing costs and reduced access. As long as these laws remain in place, Long Island’s risk premium is likely to persist, shaping who can afford to invest, who can afford to rent, and how both groups navigate the realities of New York’s housing market.