New York City landlords warn American dream is slipping away under socialist rent policies
Democratic Socialists' calls to freeze rents and reject double-digit investment returns for landlords are fueling fears among some New York City property owners, who say years of rising costs and restrictive housing policies are pushing family-run businesses to the brink.
"It shows how flawed the system is in its entirety and how inefficient everything is here," New York landlord Jose Tur told Fox News Tuesday.
Tur, whose late grandfather spent decades building the family's New York real estate business after emigrating from Cuba, said the debate over landlord profits overlooks the hardships facing many small property owners.
He recalled how his grandfather, who purchased his first apartment building in 1979, spent decades growing the family business before he was reportedly mugged at gunpoint by a tenant who had not paid rent in five years. Tur said his grandfather suffered a stroke and died two weeks later at age 99.
Fellow New York landlord Natalia Bonanno also relayed her family's struggle amid what she characterized as growing attacks from the far left: mounting operating costs that have made it increasingly difficult to keep rent-stabilized buildings financially viable.
She told "America's Newsroom" that her father came to the U.S. as an immigrant with a dream. He became the first in his family to earn a college degree and later became an engineer before deciding he wanted to own property.
"He started to invest also in the '70s and buying properties in Brooklyn and then passed them down to my sister and I," Bonanno recalled.
Today, Bonanno said that dream is becoming increasingly difficult to sustain. She disputed claims that landlords are routinely earning double-digit returns, arguing such figures ignore the rising costs of mortgages, insurance, taxes and the expense of maintaining aging rent-stabilized buildings, many of which were constructed in the early 20th century.
STEVE FORBES: MAMDANI’S SOCIALIST RENT-CONTROL PUTS NEW YORK ON THE ROAD TO HOUSING RUIN
"I don't know where they're getting 12% from," Bonanno said, responding to remarks made Friday by New York City Democratic Socialists of America co-Chair Gustavo Gordillo.
"I know a lot of people refer to the NOI figure that came out recently, and that doesn't take into account our mortgage and insurance," she added.
Gordillo, speaking to "The Story" host Martha MacCallum last week, argued that landlords should not expect double-digit investment returns and dismissed claims that rent freezes would drive property owners out of business.
Tur also disputed Gordillo's comments, arguing they were not made in reference to rent-stabilized properties, which he and Bonanno both own.
When asked whether they planned to remain in the business, Tur said he hopes to continue the work his grandfather spent decades building, describing it as a responsibility to both his family and the tenants he has known for years.
"I think it's the right thing to do on behalf of my family and what my grandfather built and also on behalf of the tenants," Tur said.
"These are people that we've known for several years. It's not like we're a huge company that's not present. We're boots on the ground."
Bonanno, however, said her family's future in New York is far less certain.
"We're selling most of our rent-stabilized buildings because we just don't see a future here for having profit," she said.
"We hope we could stay in New York City and maybe invest in non-rent-stabilized properties, but if not, we'll have to just sell and purchase properties in other states."