Rent Disputes and Lease Defaults in New York

Missed rent payments can quickly lead to major problems. Whether you're a landlord trying to recover lost income or a tenant trying to stay in your apartment, the pressure is real. 

In New York, where lease terms are dense and housing is high stakes, rent disputes don’t just disappear. They build. And when they do, both sides need to know their rights and next steps. That’s where experienced our commercial litigation attorneys at Horn Wright, LLP, can make a serious difference, especially when non-payment leads to more complex legal issues.

We’ve worked with landlords and tenants across the city to address lease violations, late rent, and everything in between. Our goal is to cut through the confusion and help you take action with clarity and confidence.

Falling Behind on Rent? Here’s the Truth About the Legal Process

You miss a rent payment. Maybe just one. 

Suddenly, you’re worried about eviction, court papers, and a possible black mark on your rental history. In New York, the law has structure, but that doesn’t mean it’s simple. And if you’re not following the rules step by step? Things can fall apart fast.

It starts with a rent demand. Landlords can’t skip straight to eviction. They’re required to give you a written notice, typically 14 days, to pay or move out. Miss that window, and the landlord has the green light to take it to Housing Court.

Here’s how that process usually plays out:

• The landlord files a petition for non-payment in Housing Court. This kicks things off. They’ll need to show proof of unpaid rent.
• You get served with a Notice of Petition. You’ve got 5 days to respond. That’s not much time. Miss it, and the judge can rule against you by default.
• Court gets scheduled. Both sides tell their story. Judges want proof - payment history, lease terms, receipts.
• If the judge sides with the landlord, they issue a judgment of possession. This includes a warrant of eviction.

Before anything happens, a marshal gives you a final 14-day Notice of Eviction. Pay what’s owed during that window, and you might be able to stay.

Still, things can get complicated fast:

• Disagreements over how much rent is actually owed. Maybe you paid in cash and there’s no receipt. Or maybe late fees were never clearly explained.
• Poor living conditions. If your place has serious issues like no heat or water damage, you might have a valid reason for withholding rent. 
• Procedural mistakes – If the landlord didn’t serve paperwork correctly or followed the wrong timeline, the case might get tossed.

Landlords: Tired of Chasing Rent? Here’s How to Take Control

Watching rent go unpaid month after month is exhausting. And when tenants break the lease entirely? It’s not just frustrating, it’s financially draining.

But before you rush to evict, you’ve got to do things by the book. New York law doesn’t mess around when it comes to tenant protections. One wrong move, and your whole case can fall apart.

Here’s what you can do:

• Issue a Notice to Cure. If your tenant broke a rule, like having unauthorized roommates or running a business from home, this gives them about 10 days to fix it. It.
• Send a Notice of Termination. If they ignore the cure notice, this tells them the lease is ending.
• File a Holdover Proceeding. This covers issues beyond just unpaid rent. Think illegal sublets, property damage, or staying past the lease.

Got a commercial tenant? You might have more options. Some leases let you demand all future rent immediately if the tenant defaults. But be careful. Locking someone out or cutting off services can get you sued.

If you're still chasing money, try this:

• Claim the security deposit. You’ve got 14 days after move-out to send an itemized list of damages or unpaid rent. Otherwise, you lose the right to keep it. 
• File a civil suit. If the tenant left without paying, you can sue for breach of contract and recover unpaid rent. Cases like this can overlap with broader breach of contract claims handled by a business dispute resolution lawyer.
• Negotiate an early exit. Some landlords let tenants walk away in exchange for dropping claims.

Tenants: Struggling with Rent? Here’s How You Can Fight Back

You’re doing your best, but the numbers just aren’t working. Rent is due, the bills are stacking up, and every time your phone rings, your stomach drops.

Here’s where you start:

• Talk to your landlord early. If you’re going to be late, say so.
• Work out a payment plan. Propose a schedule: maybe split what you owe over a few months. Keep it in writing.
• Look into rental assistance. Programs like New York’s Emergency Rental Assistance Program can cover months of back rent.
• Use your legal defenses. If your apartment has major problems - no heat, leaks, unsafe conditions - you may have a case under the Housing Stability and Tenant Protection Act of 2019.

Bring your documents - proof of income loss, payment attempts, repair requests. Judges want to see that you’re making a good-faith effort.

Want to Avoid All This? Nail the Lease from the Start

A strong lease prevents drama, avoids misunderstandings, and gives both sides clear expectations. So what needs to be in there?

• Exact rent due dates and fees. Spell out the date. List the late fee clearly.
• Grace periods. Make it clear if there’s one and how long it lasts.
• What happens if rent is missed. Outline the timeline and notices.
• Who’s paying for what. Be specific about utilities, pest control, and repairs.
• Rules on guests, subletting, and pets. Define everything up front.

And to keep things running smoothly:

• Make late fees reasonable. NYC courts generally won’t enforce excessive charges.
• Agree on how to communicate. Email? Text? Decide early.
• Use auto-pay if you can. Data data shows it's effective.
• Include an escape hatch. Like a job loss clause or early termination option.

Sometimes, these disputes evolve into bigger conflicts, requiring commercial lawsuit representation or help from a corporate litigation firm. If multiple people are involved, consult our partnership dispute attorneys.

Get Dedicated Legal Support from Horn Wright, LLP

Lease defaults and rent issues in New York aren’t just legal problems - they’re personal. Our commercial litigation lawyers at Horn Wright, LLP, help people across the city protect what matters. 

Whether you're chasing unpaid rent or trying to stay in your home, we’ve got your back. As trusted experts on commercial lease dispute, we understand how complex these situations can become and we’re ready to fight for your peace of mind. 

When you’re ready to hire one of the best law firms in America, we’ll be right here. Contact us online and we’ll schedule your FREE, no-obligation consultation to get started.