What is Good Cause Eviction? NY lawyer on protection of 'bad tenants', possible squatters

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A law passed in New York in April 2024 makes it more difficult for problem tenants to be removed from rental properties.

As a homeowner screening potential tenants, it is vital to keep local, state and federal housing laws in mind to avoid legal trouble, especially as new legislation across the country often supports tenants instead of homeowners, which includes the Good Cause Eviction Law.

"Good Cause Eviction is a new law in New York. It came into effect on April 20 of 2024, although certain provisions came into effect later on, on Aug. 18, 2024," Daniel Phillips, a real estate litigation partner at Belkin, Burden and Goldman who specializes in landlord-tenant disputes, told Fox News Digital by phone.

The Good Cause Eviction Law was passed in New York in April 2024.  (iStock)

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Even when proper screening is conducted, including background checks, credit checks and recommendations on a potential tenant's behalf, sometimes landlords end up with a tenant who causes problems.

"Essentially, what the law states is that fair market tenants who are not regulated, such as rent-stabilized and rent-control tenants, but free market tenants cannot be removed from possession of an apartment unless the landlord can establish either that they are exempt from the law or that they have what's called good cause, which is defined in the law to remove the tenant from possession."

There are several types of homes that are exempt from the Good Cause Eviction Law.

A New York lawyer told Fox News Digital the Good Cause Eviction Law makes it more difficult for landlords to get rid of bad tenants.  (iStock)

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Homes owned by a landlord who owns 10 units or fewer do not fall under this law, according to NewYork.gov.

A tenant who sublets and then decides to return to a property is also exempt from this law, as are homes provided to a tenant because of a job but who then leaves the job or is fired.

Other examples include homes built on or after Jan. 1, 2009; homes where rents and evictions are already regulated by federal, state or local law; homes in condo and co-op buildings and homes that the federal, state or local government regulates that include income or rent restrictions, such as project-based Section 8 vouchers, according to NewYork.gov. Seasonal homes, mobile homes, hotel rooms and homes where rent is more than 245% of fair market rent are also excluded from the law. 

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There are several different grounds that would be considered "good cause" for eviction based on this new law. 

"Some grounds for removal that would be defined as good cause is that the tenant is a nuisance, that the tenant failed to pay rent that's due and owing and, again, there's a list of other grounds for removing the tenant," Phillips explained. "If the landlord doesn't fall into either one of those categories, whether being exempt or having a grounds for removal, then the tenant is permitted to remain in possession of an apartment essentially in perpetuity."

Landlords should be aware of all laws at a federal, state and local level, like Good Cause Eviction, to avoid trouble with the law.  (iStock)

Phillips said this law protects potentially bad tenants, making it harder for landlords to remove them. 

"This law will help protect tenants that kind of fall in the gray area where they might not rise to the level of being a nuisance or a bad tenant, where you could remove them. But the landlord still has to deal with a problematic tenant and can't just get rid of them simply when the lease expires," Phillips said. 

"So, this is going to help protect tenants who are difficult and sometimes not good at paying the rent and giving problems to the landlord, but maybe not rising to the level where they can bring a court case against them and evict them."

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Additionally, the law puts a cap on yearly rent increases, which is currently 8.82%, according to Phillips.  

Several housing problems deal with squatters coming into possession of a home unlawfully. In many states, lengthy disputes with squatters play out in court. 

While the Good Cause Eviction Law is unlikely to factor into a squatter situation, Phillips said the law potentially protecting "bad tenants" is consistent with the way squatters are protected against landlords in many housing disputes.  

"I think what you're going to just see is a lot of potentially bad tenants being protected, similar to the way squatters are sort of being protected with rights that maybe they shouldn't have," Phillips said. "These tenants are going to be protected, and landlords are going to have a more difficult time removing problematic tenants from their buildings."