Z
ohran Mamdani's proposal to freeze rent on New York City's rent-stabilized apartments has small landlords on edge. The city's Democratic mayoral candidate's affordability-focused agenda earned him significant support in the primary, but it's now causing concern among mom-and-pop landlords who fear it will cut into their profits and force them to sell.

    These smaller owners, who make up nearly 28% of the city's rental stock, are already struggling with increasing borrowing and maintenance costs. The pandemic has added to their woes, with high inflation and steep interest rates making it harder for them to break even. Some have reported barely scraping by, while others are walking away from their properties altogether.

    The market for rent-stabilized buildings has been slowing down for years, and the current sales climate is not promising. Sales of these buildings have decreased significantly since 2018, with owners cutting prices by an average of 10% to attract buyers. The CEO of a commercial real estate lender called Mamdani's policy "the kiss of death" for small landlords.

    Landlords are particularly concerned about the impact of a total rent freeze on their ability to recover costs and maintain their properties. They point out that previous rent laws have already limited their ability to raise rents, even for major capital repairs. One Brooklyn landlord, who is struggling to pay her mortgage and facing multiple evictions, plans to sell if Mamdani wins.

    The Mamdani campaign has suggested supporting an exemption for landlords whose finances justify rent hikes, but some critics argue that this won't be enough to mitigate the impact of a rent freeze on small owners. A director of a pro-tenant lobby aligned with Mamdani's campaign downplayed the potential consequences, saying a rent freeze is not "make-or-break" for landlords.