Owning rental properties is an excellent way of earning passive income, but it comes with added responsibilities and expenses of property management, like marketing and maintenance. According to All Property Management, residential property management costs between 8-12% of your property’s monthly rental value. There are many reasons to opt-in for professional property managers, such as reduced legal problems, attracting high-end tenants, and short vacancy time.
While hiring a property manager saves you time spent juggling between maintenance and signing lease papers, you can choose to manage your property alone if you’re dealing with financial issues or if it’s just your personal preference. Whatever your reasons are, strive to become a good property manager to ensure your rentals earn a high return on investment. Keep reading to learn a few property management tips for NYC apartment complexes.
Set Competitive Rental Prices
Whether you own apartments in Manhattan or Queens, the most important role you must undertake as a landlord in NYC is setting competitive rental prices. To achieve this goal, compare rental rates in your area to get a clear picture of what to charge. As a general rule of thumb, avoid setting high rates because you’ll have to lower them later on to attract the right tenants. Your rent should be reasonable and reflect the unique features of your apartment units, like the number of bedrooms, bathrooms, walk-in pantry, built-in closets, and communal spaces like swimming-pool, garden, fitness center and other social amenities. By setting affordable rental rates for apartments, you can lower the vacancy period and have a steady source of income all year round.
Prioritize Property Maintenance
Besides pricing your rentals right, you have a legal obligation to ensure your properties are safe and up to date with New York’s building codes. With that said, list down replacements and repairs you’re responsible for. For example, if something breaks down because of regular usage or normal wear and tear, it’s your duty to fix it. But if damages occur in a rental unit because of improper usage, you can charge the tenant for repairs. So be clear about your expectations for property maintenance to keep your rental in appealing conditions.
Note that you’re also responsible for cleaning your rental apartments to enhance functionality. For this reason, consider hiring apartment block cleaning services. Professional apartment cleaners will use their knowledge and tools to deep clean floor surfaces, maintain upholstery, and clean parking lots to ensure your apartment complex stays tidy. When you maintain clean apartment complexes, you avoid wear and tear, and legal problems with local authorities.
Know the Regulations of NYC Rental Properties
Understanding the rules of managing apartment blocks in New York City is crucial to prevent legal problems. The first regulation you should implement is to create a payment agreement plan and ensure there are no rent payment delays. For example, you can write an agreement that outlines the late fee amount that you’ll charge your tenants.
Alternatively, you can offer a grace period, meaning you’ll not consider eviction for several days after rent is due. When writing your rental agreement, ensure it’s in accordance with New York City federal and local laws. A well written rental contract communicates your expectations as a landlord and protects you from legal issues.
Being a landlord comes with a lot of responsibilities, including property management. While you can hire a property manager to oversee the day-to-day operations of your apartment complex, there’s always a to-do list for landlords. To ensure you manage your apartment block well, set competitive rental rates, understand NYC rental laws, and prioritize maintenance.