5 Challenges For Landlords In 2024

Blog December 27, 2023 By Tim

2024 is shaping up to be another exciting year in real estate. Long Island landlords may find many opportunities, as well as a significant dose of challenges.


Plenty of NY real estate investors are already grappling with higher interest rates, rent rate caps, and high property tax bills. The following shifts may make it even tougher this year. 




Many property owners appear to be reporting more challenges with squatters. There are several factors fueling this trend. Which may only become more common through 2024. 


Squatters can be incredibly hard to get rid of. Instead of bringing in income, it means spending money on evictions, and often tens of thousands of dollars in repairs. 


With some states like Florida trying to pass more laws in favor of landlords, professional squatters may turn to other destinations where they feel they have more rights and protections. 


As a landlord it can be far better to rent a property faster, even to a tenant that falls outside of your typical criteria, than to risk having squatters move into a vacant unit. 


Changing Renter Demographics


Diverging wealth means that a smaller pool of well qualified luxury renters is emerging, with higher expectations of properties. 


On the other hand the majority appear to be in a financial crisis. This means landlords have to adjust to an environment with lower average credit scores, less consistent work history and income, and evictions and foreclosures being more common on tenants’ applications.  


Rising Unemployment


The Fed’s reversal of its stance on interest rates suggests that more negative data on the economy, jobs, and wages is likely lurking in the shadows. 


Between big layoffs, and the rise of AI, having tenants get laid off in the middle of their leases will be more common this year. 


More landlords may choose to switch to subsidized tenants who have their rent paid for them by taxpayers and donors in some fashion.


Bank And Lender Tightening


Even though interest rates could come down in 2024, new regulations and other constraints on banks and mortgage lenders could mean it is harder to find financial lifelines this year. 


Property Tax Increases


One thing that Long Island real estate owners should have grown accustomed to by now is property taxes continuously going up. This year should be no exception to that. 


Fortunately, you do have the power to get ahead of future property tax hikes by challenging your tax bill with the help of Property Tax Adjusters, Ltd.