Property Management In New York
Congratulations on your property investment purchase. Now it's time to maintain and run your property. You might think you will be able to maintain the property yourself, but there are other issues that need to be addressed. Firstly, are you sure, you can keep up a high quality of living for your tenants at the lowest possible price? Secondly, will you be able to get the rent collections and not be taken advantage of by the tenants? Lastly, are you going to be in over your head time-wise?
Many people think real estate management is easy, but end up becoming overwhelmed by the day-to-day tasks, and end up with apartments that have neglected repairs and unhappy tenants. It's time to hire a property management company. This is especially true if you don't live in the area of your investment property. If you need property management in NY, and you're in NJ, It would be an effort to check on your property or to fix things from a distance.
So what type of Property Management Company do you need? It depends on the size of your property (how many apartment rentals you have). If you have less than 10 units, and you're not expanding your real estate holdings, you're probably better off hiring a handyman/manager. However, once you have more than that, you should be looking into a reputable full-service property management company.
Real estate management involves checking out the prospective tenants before they move in. It also means making sure the apartments are kept in top shape before new renters move in, and maintained on a constant basis. Having paperwork such as tenant agreements in order and filled out correctly is imperative.
The key to finding a company that can run your property efficiently, and let you make a great profit without any headaches is REFERENCES. I put that in capitals because it's the key to hiring any service. Imagine hiring a company that guaranteed a certain percentage of rent-roll, only to find out later that they use strong-arm tactics on tenants. The reputation of your apartments could take years to repair. Conversely, a company can have a great rapport with the renters but fail in collections. All that can be avoided by asking for references from the prospective property management company. Ask these questions:
What type of percentage do they average on rent roll?
Are they friendly and responsive to tenants’ needs?
Do they ever spend too much?
There are many other factors that one should consider before handing their building over to a real estate management company. They should be well versed in the legalities, and have an attorney who they work with on a constant basis. Although the management company officers do not have to be lawyers, they will be handling legal proceedings for you. Instances of evictions and public nuisance issues are very common and must be handled with care. They also have to be current with local and state laws regulating your buildings.
Some states require property management companies that collect rent or list properties for rent to be licensed real estate brokers. If you are managing your own property, you would not need a real estate license, but you would need a business license.
