CORONAVIRUS - ARE WE PREPARED?

With all the news about the coronavirus, it’s important to be informed, take preventive measures and be prepared. The CDC (Center for Disease Control and Prevention) has urged everyone to take precautions and prepare for an inevitable outbreak in the United States. CDC has taken a containment strategy that has been successful to date, so far there have been 53 cases diagnosed in the US on the west coast, but the spread will require organized interventions in local communities.

Here is important information about the coronavirus from the CDC:

Symptoms include: fever, cough, shortness of breath. If you have traveled to China or been in close contact with someone with the virus and have these symptoms, call ahead and let your healthcare professional know you may have been exposed to the virus before you go to see them, wear a facemask to prevent others from getting ill.

Preventive Measures include: Avoid close contact with people who are sick; avoid touching your eyes, nose, and mouth; stay home when you are sick; cover your cough or sneeze with a tissue, then throw the tissue in the trash; clean and disinfect frequently touched objects and surfaces using a regular household cleaning spray or wipe; wear a facemask if you show symptoms of the virus to prevent the spread of the disease; wash your hands often with soap and water for at least 20 seconds (or use hand sanitizer with at least 60% alcohol) especially after going to the bathroom, before eating, after blowing your nose, coughing, or sneezing.

The CDC recommended that we all should be prepared – including our community.  We should start thinking about measures needed to prevent the spread of the virus in our homes, workplaces and places where people gather.

At Beninati Associates, we will be implementing preventive measures to protect our clients and customers, we will provide hand sanitizers, protective gloves, tissues, cleaning spray to clean surfaces, and facemasks where appropriate.  We’re not alarmed, nor are we alarmists, but we believe in being informed and prepared. And we believe that communicating and planning as a community is the best way to keep us all safer from the virus. We hope you will start thinking about what measures you should take for yourselves, families and co-workers and put your concerns to work by preparing!

Sources: CDC, Coronavirus  Update, Transcript February 25, 2020, cdc.gov; Wall Street Journal, Virus Fears Bruise World Stock, February 25, 2020, p.1; Newsday, February 26, 2020, p. A4.

Landlords Be Aware of NYS Tenant Protection Act

It’s possible, that with all good intentions, the Governor and NYS Legislature enacted into law a Housing Tenant Protection Act (June 2019), so broad based that is has had unintended consequences affecting landlords, tenants and realtors.  “The Act is a sweeping and comprehensive collection of new provisions that strengthen tenant protections,” says the New York Department of State. They have recently issued guidance for realtors. 

Many restrictions have been placed on what landlords can and cannot do. There was a need to review and revise some of the rental practices, but the broad based application of the provisions of the Act  may have the unintended consequence of impeding and possibly decreasing the number of  rentals available, and discourage realtors from acting as agents for landlords and tenants.

The law applies to our summer rental landlords and tenants as well, and we thought it would be a helpful to summarize some of the most notable provisions below:

1.    Security deposits are limited to 1 month’s rent. The security deposit must be returned within 14 days after the tenant vacates with an itemized statement indicating the basis for amounts retained. If a landlord fails to return the remaining portion and itemized statement within 14 days, the landlord forfeits any right to retain any portion of the deposit.

2.    Processing, review or acceptance application fees are prohibited (with some exceptions for COOP’s and Condos.

3.    Background check fees are limited to lesser of actual cost or $20.

4.    Late payment fees are capped to lesser of $50 or 5% of monthly rent.

5.    If a tenant breaks a lease, the landlord must attempt to re-lease the property.  

6.    Damages in eviction proceeding are no longer recoverable. There are a number of additional provisions that address timing, of eviction proceedings, warrants, etc., that landlords should be aware of.

If you are a landlord, talk with your attorney and find out how the new law applies to you, and make sure your lease is updated for the new provisions of the 2019 Act.

Sources:

New York Department of State, Guidance for Real Estate Professionals Concerning the Statewide Housing Security & Tenant Protection Act of 2019.

NYSAR (New York State Association of REALTORS, Inc.), 13 Things to Know: Expansion of Rent Regulation and Tenant Protection, prepared for NYSAR by Harris Beach, PLLC, Attorneys at Law.

SECOND HOMES FIRST – A MOVEMENT

With median home prices in cities like New York and San Francisco hovering around $1 million, some first-time buyers are choosing to remain renters in their home city and they're buying a vacation property in a more desirable/affordable area instead.

               Over the past few years, we have been seeing more and more Millennials buy on the North Fork, where they can get a beautiful home on waterfront property and not use all their assets and plus some to get a fraction of the space in the city.  They then have the best of both worlds - a city apartment rental offering more than they could afford to buy, and a second home in a resort area offering all they wish to enjoy with children and family.  “A place to live, and a place for living.”

Does it make financial sense to buy a second home and rent a primary residence in the city? Starting with a second home can be a reasonable choice for many urban professionals, especially couples with small children.  Space in New York City is far more expensive on a per-square-foot basis. Instead of taking on a big mortgage in the city, a smaller mortgage for a vacation home may not only be easier on your budget, but could also have some relative tax advantages, including mortgage interest deductions on loans up to $750,000 and some local tax deductions.

Why buy a second home, first?  There are several important factors to consider.  The emotional well-being that comes from getting out of the city, especially when couples are in stressful jobs, is “priceless”! You get to enjoy the North Fork, to relax, go fishing, swim, hike, kayak, garden, visit local wineries, and breweries, enjoy diverse dining experiences, in a much more laid-back environment.  If you have children, you also spend quality time together and the children can run around in farm fields or even just the lawn in your back yard!  Sound idyllic?  It is!!! 

Why the North Fork makes for an even wiser choice for a second home is the steady appreciation in value.  “Win-Win,” don’t you think?  But the challenge today is getting the best value in a market where inventory is in short supply.  Make your move sooner rather than later. Don’t let the parade pass you by!  Call us, we’ll tell you all about the opportunities and possibilities of our beloved North Fork, and you can be part of it before the summer season starts!  Maybe even a Valentine’s gift for yourself and the whole family!

Source: Why people are buying vacation homes -- before they've even bought a first home, Anna Bahney, CNN Business, January 7, 2020.