New York City landlords say a proposed rent freeze and rising operating costs are squeezing returns on small, family-run portfolios and pushing some owners toward sales. In reporting for Fox News, owners including Jose Tur and Natalia Bonanno described the combination of a rent freeze push and mounting expenses as a turning point for family real estate businesses.
What landlords are saying about the rent freeze
Landlords interviewed by Fox News framed the debate around the rent freeze demand and the everyday costs of running older New York properties. Jose Tur, who described his family’s decades-long New York real estate business, said the proposals expose longstanding structural problems.
“It shows how flawed the system is in its entirety and how inefficient everything is here,” Tur told Fox News, naming the rent freeze push as part of the concern. He stressed the role of family management and long-term tenant relationships in small portfolios.
Gustavo Gordillo, co-chair of the Democratic Socialists of America in New York, told Fox News landlords should not expect double-digit returns and disputed the idea that a rent freeze would automatically force owners out of business. That contrast — owners warning margins are thin while DSA figures call reported high returns exaggerated — is central to the dispute.
How rising costs are eroding returns
Owners repeatedly pointed to rising property taxes, insurance and mortgage payments as the primary pressures that a rent freeze would aggravate. Natalia Bonanno, quoted in the reporting, disputed claims that landlords routinely reap “double-digit returns,” saying headline numbers often omit mortgage and insurance costs.
“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,” Bonanno told Fox News. She and other owners said aging buildings require ongoing capital investment that reduces cash available to owners even when published NOI looks healthy.
Costs breakdown: numbers and quotes
The reporting includes contested numerical claims and owner-provided examples. Some figures are disputed among participants; the following are presented as owner-reported examples and illustrative ranges cited in interviews rather than independently verified sector-wide facts.
- Property taxes: Owners described property tax bills that can vary widely by borough, building size and assessed value. In interviews they provided ballpark examples ranging from several thousand dollars annually for small, low-assessed buildings to mid-five-figure or higher bills for larger, re-assessed properties.
- Insurance: Landlords said commercial and casualty insurance premiums have risen, with smaller portfolios often facing annual insurance costs from low thousands up into five figures depending on coverages and loss history.
- Mortgage payments: Owners carrying loans noted monthly mortgage obligations that can run from the low thousands to multiple thousands of dollars per building depending on loan size and interest rates, a major monthly cash outflow for family operators.
- Net operating income (NOI) and returns: Publicized NOI or yield figures cited by some advocates were described by owners as incomplete. For example, Natalia Bonanno disputed a cited double-digit figure, asking, “I don’t know where they’re getting 12% from.” Landlords said, after mortgage, tax and insurance costs, cash-on-cash returns for small, rent-stabilized portfolios can be materially lower than headline NOI suggests.
Those owner-provided examples were offered to show how taxes, insurance and debt service can erode what look like attractive headline returns. The interviews emphasize that precise impacts depend on each building’s mortgage terms, insurance costs, tax assessment and capital needs.
Why some owners are selling rent-stabilized units
Several owners described decisions to sell as a direct response to the policy climate and financial realities. Bonanno said her family is selling most of their rent-stabilized buildings because “we just don’t see a future here for having profit.” She said the family is weighing reinvesting in non-rent-stabilized properties in New York or buying in other states.
Tur framed his decision differently: he said he feels a responsibility to continue the family real estate business his grandfather started in 1979, cited long-term tenant relationships and emphasized “boots on the ground” family management. Yet he acknowledged the sector’s strain and the hard choices owners face.
The selling decision ties to the family real estate model many small owners operate: properties passed across generations, managed locally, and dependent on slim margins. For some, policy shifts plus rising carrying costs tip the balance toward liquidating and purchasing elsewhere.
The policy debate: proposals and contested claims
The Democratic Socialists of America have pushed measures including freezing rents, arguing excessive landlord returns are part of the affordability problem. Gordillo told Fox News that expecting double-digit investment returns is unrealistic for many properties.
Owners counter that public figures about returns may use broad averages or exclude mortgage, insurance and maintenance expenses. The resulting disagreement is often about accounting scope and sample selection: which buildings are included, and which costs are deducted.
Some numerical claims in the coverage are explicitly contested. Bonanno’s remark — “I don’t know where they’re getting 12% from” — illustrates how advocates’ headline figures and owners’ ground-level cost counts can point to different conclusions.
Source attribution and what comes next
This account is based on reporting by Fox News and includes direct quotes and descriptions offered by owners including Jose Tur and Natalia Bonanno, and statements by Gustavo Gordillo. Where the original coverage relays personal recollections or disputed numerical claims, those items are presented here as allegations or competing claims rather than established facts.
Policy discussions about a potential rent freeze are likely to continue in New York City forums and policymaking venues. Stakeholders will emphasize different metrics: owners focusing on mortgage, insurance and tax burdens; advocates citing broader return measures or market-level outcomes. Observers should treat contested numerical claims — including references to “double-digit returns” — as disputed among participants and dependent on accounting choices.
Source: Fox News reporting on the debate. Original article: Fox News.
