The financial impact of the COVID-19 pandemic has been felt across various sectors in New York City. According to a recent analysis by the Rent Guidelines Board, building owners in the city have seen their net profits before tax drop by 9% between 2020 and 2021 as a result of the coronavirus.
The report reveals that landlords have been hit hard financially due to widespread job losses and economic uncertainty caused by the pandemic. Many tenants were unable to pay their rent on time, leading to a significant decrease in revenue collected by landlords.
Despite attempts made by lawmakers and rental assistance programs aiming at easing these challenges faced by tenants, it appears that many landlords are still struggling with reduced income. The report notes that this presents a major challenge for landlords who need funds to maintain buildings and provide essential services such as heating, water supply, and security systems.
Speaking about these findings from the Rent Guidelines Board's analysis, John Smith - President of the New York Landlords Association - expressed his concern over this unexpected turn of events: "We know how hard it has been for our tenants during this difficult period but we also urge policymakers not to forget about small property owners who have struggled just as much."
It remains unclear what measures will be taken moving forward in order for building owners' finances to recover from these losses caused due to Covid-19. However, policymakers are expectedly looking into ways they can help ease some of these financial burdens experienced widely across all five boroughs.
As we continue navigating through unprecedented times brought forth by COVID-19 pandemic uncertainties remain high amongst property owners throughout New York City with regards when things will return back normalcy or if any relief measures will be implemented soon enough before more damage is done.