Commercial Landlords and the Non-Residential Tenant Harassment Law

In September 2016, New York City enacted the “Non-Residential Tenant Harassment” law that increases protections for New York City commercial tenants. Under the law, a commercial landlord, or someone acting on his or her behalf, cannot harass a tenant into making them vacate the commercial property or surrender or waive their rights under an effective lease agreement. This includes the use of force, implied force, interruption of access to the property or services within the property, court proceedings, and the changing of locks in the property.

In September 2016, New York City enacted the “Non-Residential Tenant Harassment” law that increases protections for New York City commercial tenants. Under the law, a commercial landlord, or someone acting on his or her behalf, cannot harass a tenant into making them vacate the commercial property or surrender or waive their rights under an effective lease agreement. This includes the use of force, implied force, interruption of access to the property or services within the property, court proceedings, and the changing of locks in the property.

If a commercial tenant is harassed by their landlord, he or she may file a lawsuit for damages, punitive damages, and the cost of attorneys’ fees. If the court rules in favor of the commercial tenant, it may impose a mandatory civil penalty of between $1,000 and $10,000. The court may also issue a restraining order against the landlord to prevent further harassment.

As a commercial landlord it is important to protect yourself from liability, by taking the following measures:

1. Expressly include a legal waiver within a lease agreement. A waiver is enforceable as long as it is not in violation of public policy. Additionally, it may be in the best interest to incorporate a confirmation of the landlord’s duties or obligations to the tenant. This may help alleviate any concerns a tenant may have.

2. Under the law, implementing “unnecessary” repairs, repeated, or extended interruptions of services within the property is prohibited. For this reason, it is important to maintain adequate records for repair services, including the reason for a repair within the property, in order to avoid any claims that the repairs were not necessary. Additionally, it is imperative to document, and if necessary photograph, any repair services on the property, as well as any additional steps that were taken to address the issues. The statute also indicates that reports may be provided to tenants regarding the efforts to fix any interruption to the tenants.

3. Obtain adequate legal advice prior to contacting a tenant regarding a tenant surrendering his or her lease prior to the date of termination. Additionally, discuss any tenant defaults with an experienced landlord-tenant attorney.

4. All tenants in a building shall be treated equally in order to avoid any conflicts. For instance, do not repair a leaky window for one tenant while ignoring a leaky window of another tenant, especially if that tenant is paying less for his or her dwelling. This may be construed as harassment.

5. Inform all employees of the new law as well and provide guidance on appropriate conduct.

According to the New York City Bar Association, the law does not affect a commercial landlord’s ability to lawfully terminate a tenant’s commercial lease, renew or extend a lease agreement, or reenter or repossess his or her commercial property. Commercial tenants have an obligation to pay their rent. Any monetary damages that were recovered for harassment may be reduced by the amount of delinquent rent or other sums owed to the landlord.

If you are a landlord or tenant who is facing a complex landlord-tenant dispute, it is important to seek guidance from an experienced lawyer who can help you through the process and protect your legal rights. The New York landlord-tenant lawyers at McGuire & Peleáz P.C. Have experience representing hundreds of New York landlords and tenants in complex matters. For more information or to schedule a consultation, contact our New York landlord-tenant law firm at (631) 348-1702.