Purchasing in investment properties in New York City can be a daunting task. There are many questions that beginners would like to ask. Every neighborhood has their unique characteristics and there are daunting legal issues that abound with New York City properties. From zoning, attracting qualified tenants, Department of Building violations to landlord and tenant issues one can become increasingly hesitant in investing. Some who have experience can certainly be able to figure things out although to them it is also overwhelming if you are maintaining a full-time job. As this being the case, it is important to find the right assistance when managing a property. Also one should also look into securing a property management company that best suits your needs. Home renters are either individuals who like the lifestyle of being a renter or are looking to rent before eventually purchasing. Your property management team should be able to recognize that and answer all of your important questions. Below are some suggestions for you when you are purchasing a property in NYC:
1) Look for properties that are close to places people normally travel to. Shopping centers, places of worship and schools are important. It is also important to have public transportation that is accessible. It would be ideal to purchase properties that are closer to subways.
2) Look for properties that are not less than 12 year old. Older models will require more money to renovate when tenants leave or if you are looking to modernize available units. Older models tend to also have worn electrical and plumbing issues that will require funds that may not be available readily especially after just purchasing. Also, it is easier to upgrade units that are less than 12 years of age.
3) Look for homes that are not located with busy traffic and have active neighbors. Neighbors are normally touch and go but you should find neighborhoods that are on the quiet end. Also neighbors that care about their own property will care about the welfare of the entire neighborhood. If you see manicured lawns and clean sidewalks, you know you are on the right path.
3) Look for rentals with at least 2 bedrooms. If you get 1 ½ baths you are in great shape. Your rentals should be in areas that property values are appreciating and you have the potential for higher rental amounts presently and in the future. If you are purchasing a multi-family with 6 units or above it is important to determine whether the property is rent stabilized or have rent-controlled units. Recent laws in NYC forbid taking units out of rent stabilization and to market rent.
4) Properly doing background checks on potential tenants are important. With recent rent reform laws in New York State, it will make it a chore to evict tenants who are not abiding by their obligations under their current lease. It is important to do all the necessary checks at your own expense in order to make sure you have the correct fit for your property. The failure to do this will result in maybe a year in lost rental income and attorney fees.
Purchasing an investment property here in New York City may seem like a high risk activity in our environment but with the right mindset it can be rewarding. Also with the right assistance you will have one less thing to worry about. BJD Property Management can be of assistance. We are a full-service property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx. Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.