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Q: A 12 months in the past, once I utilized for a market-rate condo within the Bronx, the owner required that I get a lease rental bond from a bond firm. I’ve a great credit score rating, however the agent stated my liquid belongings have been beneath the required threshold. Along with the bond, I needed to give them first month’s hire and a one-month safety deposit earlier than transferring in. The bond price me $1,000. I’ve been paying my hire on time by the corporate’s app, however now they’re telling me that I have to 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 might’t work one thing else out, can I be evicted?
A: A lease rental bond ensures a tenant’s lease fee obligation. The bond covers losses for the owner if a tenant fails to pay the hire; the guarantor then recoups the cash from the tenant. It could 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,” stated Nancy L. Kourland, an actual property lawyer with Lasser Regulation Group. “Furthermore, it’s fairly seemingly that the owner is not going to countersign the renewal lease with out proof that the author bought a lease rental bond.”
Many landlords depend on third-party guarantors slightly than having tenants ask household or associates to behave as guarantor. Tenants whose revenue fluctuates or who’ve little New York Metropolis rental historical past, a low credit score rating, a brand new job, or inadequate revenue and belongings usually tend to want a lease rental bond.
Requiring a assure from an establishment grew to become extra fashionable when a state landlord-tenant legislation, the Housing Stability and Tenant Safety Act of 2019, took impact, Ms. Kourland stated. The legislation permits landlords to gather solely the primary month’s hire and a safety deposit equal to 1 month’s hire initially of the lease.
If you happen to don’t get a bond, the owner might start eviction proceedings after your present lease expires. “Nevertheless, if the price of acquiring the bond is extreme, a court docket might discover it to be ‘unconscionable,’ and due to this fact unenforceable,” stated James B. Fishman, a lawyer in Manhattan who represents tenants.
You could possibly attempt to negotiate a compromise along with your landlord. For instance, supply to pay for the rental bond for the primary 12 months of the lease, and if all of your funds are well timed, the owner would waive the requirement for the second 12 months.
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