Owning a rental property in New York City is a good way of expanding your investments considering it is one of the biggest real estate markets in the world. However, you probably realized that it takes more than you had anticipated if you are managing the property by yourself. It can be time consuming and expensive because it involves handling tenants, repairs, maintenance, compliance and legal issues among other responsibilities.
Choosing to work with an NYC property management firm is your best route to growing your investments in real estate. However, if you are still on the fence about it, read on to learn more about the benefits of having a leading property management firm handle your property.
Responsibilities of a property management company
Below are some of the services that a qualified and reliable NYC property management firm should offer to you:
Property listing and advertising – The firm should ensure that vacant apartments or properties are advertised in the New York real estate space to expose the property to a wider and high-quality tenant pool.
Acquire tenants – The number one responsibility is to ensure that your property has tenants for continuous incoming cash flow. After advertising the property, they should screen potential tenants, keeping in mind fair housing laws.
Manage tenants – The company should be responsive to tenants’ questions and handle complaints. They should also handle move-ins and move-outs to ensure smooth transitions.
Rent collection – It is the company’s duty to ensure prompt collection of rent and other fees. They should also send out rent payment reminders and follow up with tenants who are in arrears.
Property maintenance – Regular property inspections should be conducted to ensure that risk of damage to the building is minimized. They should also maintain good relationships with vendors such as cleaners, exterminators, and HVAC servicing companies.
Handle legal issues – The firm ensures that contracts and leases are compliant with the housing laws. They also handle legal issues that may arise from property damage or tenants’ evictions. In addition, they ensure that the property is compliant with environmental and building requirements.
Document maintenance – The company should maintain record of all documents regarding your property including:
Insurance policies documents
DOB registration for boilers and elevators
Licenses and permits
Payments made such as insurance premiums
Benefits of a property management company
If you find a property management firm in New York City that is able to execute the above services with expertise and professionalism, you are bound to benefit from the following:
High quality tenants
The screening process can be tedious in terms of knowing what to look out for in a tenant. High-quality tenants pay rent on time, live respectfully within their space and among neighbors, and you can expect a better landlord-tenant relationship.As a business that deals with tenants every day, property management companies have an eye for such applicants and can easily identify red flags that could potentially lead to bad tenants.
Decreased tenant turnover
A tenant may renew their lease if they are happy with their tenure and rent. A good property management firm knows how to set rent prices depending on the New York City real estate market. They are also available around the clock to handle tenants’ concerns on time to keep them satisfied. In addition, they keep the property well-maintained to prevent displeased tenants.
Shorter vacancy periods
The longer your property stays without a tenant, the more income you are losing. Property management companies ensure that vacancy periods are reduced by setting reasonable rent prices and making improvements to the property before advertising it on the New York real estate market. This ensures market attractiveness while still maximizing your revenue.
Saves you money
Working with a property management firm can save you money in the following ways:
They have established good working relationships with vendors. You are likely to benefit from quick service and discounts on the repair and maintenance of your property.
They identify issues early and work on repairing them immediately to avoid larger problems that can be expensive to repair.
By having the duty of managing your property taken off your plate, you have more freedom and time to channel to other areas that can generate you money.
Less legal and financial problems
A reliable property management firm in NYC is experienced in preventing potential lawsuits. They handle every aspect of your property in compliance with the set laws in regards to screening, evictions, leases, inspections, property conditions and safety.
In addition, the company helps you collect the rent on time and deal with tenants who pay late. Since they are more experienced, they know how to enforce lease policies to ensure that defaulters pay, as well as how to handle the situation if they don’t pay, including giving out eviction notices.
Property management takes more than meets the eye, so leaving it up to the professionals to handle everything property related will take a lot off your plate. Although hiring one will cost you, you are saving more in terms of preventing additional maintenance, legal, and financial costs, as well as high quality tenants, and shortened vacancy periods and tenant turnover.