Do you happen to own multiple properties in and around NYC? Or you have a fantastic condominium in Brooklyn? Looking to make it a profitable investment opportunity? NYC property management companies can get you all that you are looking for in the property management arena.
NYC is definitely a city that everyone dreams of living in. Owning properties in the city that never sleeps means you have an excellent real estate investment option on hand. However, if you do not have adequate knowledge of managing your properties, it can mean that you might not get the best in terms of tenants, rent, maintenance, etc.
Places in and around NYC, such as Brooklyn, Queens, have thriving real estate markets where residential and commercial spaces are in high demand. All that is required of you to do is find some good and dependable Property Management NYC companies that can help you transform your real estate properties into lucrative investment options.
Let’s learn more about this whole property management process to help you make a wise decision on why, how, and when to choose the ideal property management company.
What Exactly is Property Management?
Property Management is an arrangement under which another company or agent manages and oversees the real estate properties on behalf of the owners. It can be your residential, commercial spaces or shopping complexes, apartments, condominiums, individual houses, etc. These companies can take care of all the maintenance works while also working towards advertising your property, finding tenants, screening, finishing the legal formalities, finalizing the lease agreements, etc. on behalf of the property’s real owners.
But, wait here is the deal! What does property management gain from this? The companies will receive a percentage of the rent you earn on these properties. Their property managers are responsible for maintaining the property in the best health while generating income for themselves and the company they represent.
What are all the activities that come under the purview of Property Management?
While entrusting your property in the hands of the property management companies, it is essential to understand their services’ scope and at the same time the benefits as an investor you can reap. This also gives you a clear idea of what is expected of you as the property owner.
- Setting up the rent prices – The property managers are better positioned to decide the rent prices for a specific locality or region. For instance, in the region of Queens property management companies have a better hold of the local real estate market conditions, the current rates prevalent in the neighborhood, the demand for rentals, etc. You can entrust the job of fixing the rent for your rental properties in the hands of property managers.
BJD property management seems to be one such property management company in NYC with a prominent presence in the Queen’s property management and NYC property management. They are pioneers in managing the rental properties and will fetch a good deal for your property.
- Rent Collection – You do not have to worry about going for a door to door collection of the rent. The property managers will set a definite date on which rent will be collected from all the tenants. They also make sure there is no delay in collecting rent by having stringent late fee penalties in place. Timely collection of rent is also crucial for the companies to meet the expenses of the rental property maintenance as well as to build the property management company portfolio.
- Marketing your property – As a property owner, you do not have to spend time and money separately for advertising your property in the real estate markets to get tenants for your property. The property management companies will enlist your property in multiple forums giving the property the maximum visibility. Hence you do not have to worry about letting people know of your rental property.
- Handling Maintenance and Repairs – These property management companies will attend regular upkeep activities such as painting, cleaning, refurbishing, etc. to ensure that they are habitable and attractive to the potential tenants.
Every time your tenant has a complaint or any repair request, the property managers will promptly attend it. You do not have to go in search of a plumber or electrician or listen to the endless complaints of your tenants as NYC property management companies will have 24/7 tenant support for the timely resolution of the issues. If you have BJD property management as your property manager, you can sit, relax, and collect rent without having to deal with the hassles of Tenant – Landlord relationship.
- Tenant Placement – Finding tenants for your rental properties is no longer the headache of the owners. The property management companies will identify those units that are getting vacant so that they can place the tenants as soon as there is a vacancy. Most Property management Brooklyn agents will have specialized software to take care of the tenants’ screening, so you get to rent out your property to the right people.
- Site Inspections – Leading property management companies have site inspection as one of the mandatory activities to ensure the properties are up to the standard. Regular inspection is required to ensure the properties they handle are in good condition and comply with the local safety regulations and standards. This will also let them know if the property requires any upkeep or repairs.
- Move-In Formalities – They will also participate in all the move-in formalities such as drafting and finalizing legally compliant rental agreements, move-in inspection, delivering the tenant welcome package, and giving them all the required contact information in case of issues. The tenants will be briefed about some important information about the local area, the maintenance responsibilities with a small welcoming gift for the tenants.
- Maintain the Books of the rental properties – Property management companies are also required to maintain proper financial documentation of all the rent receipts and expenses pertaining to the properties being managed by them. They will have all the necessary expertise required to finalize your financial statements and file any declarations or forms necessary under the rental property business. Property managers will also help clients manage their annual tax filings as they deal with all the business’s financial information.
Who Should Hire a Property Management Company?
There is no hard and fast rule to appoint a property management company to handle their properties. Anybody who happens to own rental properties can have a property manager if they can afford their fees. Here are a few scenarios where having a property management company can work well.
- Owners of multiple properties – Busy Landlords who own many properties, can avail of a property management company’s service. This will help them manage the properties efficiently and save them from finding tenants, collecting rent, and the other legal formalities involved in it.
- Homeowners who stay away from the property – If you happen to own properties in NYC and have to stay far away, it is always convenient to hire a property manager to conduct the business on your behalf.
- Property owners who do not want to be employers – If you do not want to deal with paying salaries and complying with other legal formalities of hiring a manager, property management companies are sure the best option as they are independent contractors who work for a fixed commission.
These are some of the everyday situations where one would want to have the services of professionals. While you have moved the burden of managing the property to the third party, you still enjoy the revenue from it at an affordable cost.
Some Key Stats About the Property Management Industry
Property management is, no doubt, a thriving industry in New York. With real estate prices soaring high, the industry contributes about 16% of the US’s total GDP. More than 200K property management companies in the US, and the revenue from this sector roughly sums up to $88 Billion. This definitely shows that most homeowners are picking up the easy way of managing their rental property by paying a fixed amount to these companies.
Advantages of hiring a property management company
- Reduce the chances of having a bad tenant – If you have been a landlord for a few years, you will know that a bad tenant can cause many financial and legal problems. Property Managers will have all the necessary expertise to screen the tenants, get a background check done, and deal with the legality of evictions. The screening process itself will eliminate the possibility of having a troublesome tenant to a great extent.
- Vacant for a longer period- Homeowners need not worry about their properties remaining vacant for a longer period. The property managers will have a better idea of the demand for living spaces in the market and streamline their marketing efforts accordingly. It will ensure the properties they are handling do not remain vacant for a longer period.
- Effective collection of rent – Most companies have automated software that takes care of rent collection on a fixed date. Hence you do not have to go around collecting or checking if your tenants have made their payments on time.
- Easy Maintenance of the buildings – The companies are also responsible for maintaining the property in a habitable manner and catering to the repairs on time. You will not get any grievance calls to fix a leaking pipe in the middle of the night from your tenants.
- Compliance with Real Estate Laws and Regulations – Property management companies keep themselves updated with the latest rules governing real estate properties. They will have a better idea of the local housing stability and tenant protection rules in each state. As a landlord, you may not necessarily have all the knowledge required to ensure your business complies with these legislations. Having a property management company will make sure your rental properties are compliant with the local rules.
- Less stress on the homeowner – If you happen to own multiple properties having a dedicated property management company can save you a lot of time and effort in managing rentals. Of course, there is a cost involved. However, you will be leading a less stressful life if you have a property managing company. Companies involved in Property management Queens use the latest technology to make the whole process more seamless.
Apart from these benefits, you will also get to concentrate on your other businesses, go about your life in a way without your real estate business becoming a burden for you. Irrespective of whether you own an independent house or apartments or multiple houses in and around NYC, you can rest assured of a steady source of income if you have property management NYC companies engaged in your real estate business.
What Are the Latest Developments in the Property Management Industry?
The real estate management and investment industry is a competitive space, with every company carving a niche for themselves in the market. The Internet is increasingly becoming a predominant part of our lives, and the use of advanced technology is inevitable for survival and success in any industry. Property management is no different. Let us take a look at some of the recent trends in the industry.
- Adopting new technology to improve serviceability – Smart technology is used in rental homes to enhance the amenities and security arrangements. It gives more confidence to the tenants to pick a specific place. Cloud sharing technology is used to make interactions with the tenants seamless and instant. It also makes grievance redressal easier and less time-consuming.
- Automation – This is yet another ground-breaking development in the industry. Maintaining physical invoices for rent and collecting rent manually have become the ways of the old school. Most of the Brooklyn property management companies use the latest software to enable collecting and remitting rent electronically.
Monthly or weekly payments are deposited to the landlord’s account, utilizing a wire drawn in favor of the account holder. It facilitates the rent’s easy transfer to the landlord’s account without having him go to the bank to get his check cashed.
- Focus on the Millennials – As per the market research, the millennial population will explode to over 55 million in the next ten years. They will be a major chunk of the population who will be moving to cities searching for better job prospects, and hence their housing needs will increase. Property management companies are equipping themselves with facilities such as free Wi-Fi, online payments, Keyless entry into homes, etc., as they may not be interested in settling for old-fashioned homes.
- Virtual Marketing – Marketing efforts are also put in going virtual these days as most businesses have an online presence. Property management companies are resorting to online marketing tactics to advertise their spaces. It helps companies get a wider reach without having to spend too much on advertising. Informative content, videos, and HD pictures are used to circulate the availability of rental spaces.
- Property Management Software – this is taking center stage in helping property managers and landlords for better lead generation. Studying the data using this software allows firms to cater to the needs of both tenants and landlords. It also helps firms tap the potential in the market based on the study of the potential tenant population and create add-on services and facilities to woo the potential tenant population.
What are the costs involved in engaging a Property Management Company?
Property management companies usually charge a fee for managing the properties of their clients. It can either be a flat fee charged every month or a fee charged as a percentage of the rent collected on the homeowners’ rental properties.
There is no fixed percentage of fee collected from each unit and depends on many factors such as
- Size of the property – the fee collected for managing a larger unit will definitely be more than one collected for a smaller rental unit.
- The type of rental units – fee will vary based on the type of unit you own commercial rental units. Shopping complexes with good earning potential will have a higher fee than smaller individual residential units.
- New vs Old – Old houses or apartments will have more maintenance work and may require a higher fee to cover the maintenance costs against new ones that require very little maintenance.
- Services Avail – The fee for managing properties depends on the type of services you intend to avail from the company. Are you engaging the company only to collect and remit rent, or you want them to manage the whole property on your behalf? The fee will increase based on the number of services you avail from the managing company.
Final Thoughts
Overall, most homeowners would like to engage a professional property management company to take care of the assets and improve the revenue earning prospects from the real estate investments.
Landlords can be exempted from the legal and managerial work while also enjoying income and ownership of their rental properties. Engage the best NYC property management to ensure you get good returns and have your property in the best of health.