New York landlords are firing back at rent freezes and double-digit profit claims

Democratic Socialists’ calls to freeze rents and deny double-digit investment returns to landlords are fueling fears among New York City landlords, who say years of rising costs and restrictive housing policies are putting family-owned businesses on the brink.

“It shows how flawed the system is as a whole and how dysfunctional everything is,” New York landlord Jose Tur told Fox News on Tuesday.

Tur, whose late grandfather spent decades building the family’s real estate business in New York after immigrating from Cuba, said the debate about landlord benefit ignores the difficulties faced by many small property owners.

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He recalled that his grandfather, who bought his first building in 1979, spent decades growing the family business before he was reportedly held at gunpoint by a tenant who hadn’t paid rent in five years. Tur said his grandfather suffered a stroke and died two weeks later at the age of 99.

New York landlord Natalia Bonanno also shared her family’s struggle amid what she described as a growing attack from the far left: rising operating costs that have made it increasingly difficult to keep stable properties financially viable.

He told “America’s Newsroom” that his father came to the US as an immigrant with a dream. He was the first in his family to earn a college degree and later became an engineer before deciding he wanted to own property.

“He started investing in the ’70s and bought properties in Brooklyn and then passed them on to me and my sister,” Bonanno recalled.

Today, Bonanno said that dream will be difficult to maintain. He disputed claims that homeowners often get double-digit returns, saying the figures ignore rising housing costs, insurance, taxes and maintenance costs for aging rental properties, many of which were built in the early 20th century.

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Brownstone apartments in Manhattan, New York City, on July 6, 2024. (Beata Zawrzel/NurPhoto/Getty Images)

“I don’t know where they got the 12%,” Bonanno said, responding to remarks made Friday by Democratic Socialists of America Chairman Gustavo Gordillo.

“I know a lot of people are referring to the NOI figure that came out recently, and that doesn’t take into account the mortgage and our insurance,” he added.

Gordillo, speaking to “The Story” host Martha MacCallum last week, argued that landlords shouldn’t expect double-digit investment returns and dismissed claims that the rent freeze will drive landlords out of business.

Tur also disputed Gordillo’s comments, saying it wasn’t made about the rental properties, which he and Bonanno don’t own.

Asked if they plan to continue with this business, Tur said he hopes to continue the work that his grandfather spent decades building, describing it as a responsibility to his family and employers who have known him for years.

“I think it’s the right thing to do on behalf of my family and what my grandfather and the employers’ lawyers have built,” said Tur.

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“These are people we’ve known for several years. It’s not like we’re a big company that doesn’t exist. We’re boots on the ground.”

Bonanno, however, said his family’s future in New York is less certain.

“We are selling most of the buildings we have rented because we don’t see the future of making a profit here,” he said.

“We hope we can stay in New York City and maybe invest in vacant properties, but if not, we’ll just have to sell and buy properties in other states.”