Do you own property in NYC? Are you looking for a property manager? A property manager can be an individual, a company, or an agency. Property Management is all about operation or control, and caretaking of real estate in a broad sense. The management companies can handle properties ranging from single homes & apartments to big complexes consisting of hundreds of apartments and commercial properties.
- Commercial Property Management
This is related to commercial properties where tenants don’t live, but it is a place to do business. These include:
- Industrial buildings
- Factories
- Shops
- Shopping centers
- Storage facilities, warehouses, etc.
- Residential Property Management
This refers to the management of properties that are used for residential uses. These include:
- Houses
- Apartments
- Terraces
- Duplexes
- Townhouses. Etc.
Do You Need Property Management In NYC?
For many real estate investors, it is a difficult question to answer. Some feel that ‘do-it-yourself’ is the best way to go. If you are also struggling to answer this question, then here are a few factors that can help you make the right decision. You need property management if:
- You already have or plan to acquire multiple rental properties; then, property management can be useful. The more properties that you have, the more is the need for property management.
- The property is in some other area or state far from your place; a property manager can keep a close watch. This proximity from the property can be defined in different ways by different people.
- You are busy with your life and don’t want to manage the property actively. The daily operations and routine maintenance can be handed over to a property management firm.
- You don’t want to hire staff to look after the property directly. Hiring employees can require a lot of paperwork and individual payments. A property management company will not be your employee and work independently.
- You can afford the fees charged by the property management company. You have the money to pay someone to look after the property but not the time.
What Does A Property Manager Do?
Property manager oversees an owner’s real estate properties’ daily operations and dealing with the tenants’ concerns. So, a third party is responsible for maintaining the property and looking after the people using the property. They charge a fixed rate or % based commission for looking after the property. Depending on the contract between the owner and the property management company, a property manager can do some of the following things or may even do more than these.
- Collect rentals from the tenants
- Take care of the maintenance requests of the tenants and solve them
- Deal with the tenants who are defaulters
- Maintain a detailed record of all the happenings in the property
- They can look for tenants if asked by the owner
- Make small payments for small repairs and upkeep
- Give regular reports to the owner
- Take care of the following
- Lawn maintenance
- Preventive maintenance
- Plumbing issues
- Lifts and lobby area
- Public area maintenance
Property Management in NYC
The property management industry has its own set of standard operating procedures and laws wherever it is located. NYC property management companies also have their unique features. As a client, you need to be aware of these to choose the right company and hold them against these standards.
In NYC, the property management companies need a real estate broker’s license if their activities are a part of ‘real estate activities.’ Some of these activities are given here, but there could be many more.
- Renting out a residential property
- Negotiating the rental fees
- Collecting rent
- Listing a residence for rent, etc.
If the property management company is strictly limited to maintenance-related duties, then a broker’s license is unnecessary. What a property management company may charge in NYC will depend on what they offer and what the client desires. Depending on their services, they may charge a percentage of rent ranging from 8 % to 12% or even more. Usually, a lower percentage rate is charged for properties with more units or for commercial properties, but for smaller properties or single residential homes, a higher percentage is charged.
What Are The Benefits Of Hiring A Property Management Company?
Probably the most important benefit for you is ‘time.’ However, there are several benefits of hiring a property management company, and some of these are:
- Having a third party for property management offers a buffer from liability arising from unscrupulous tenants. False accusations can be better handled when you have a property manager.
- Property management companies are specialists in their field. They know what to look for in a good tenant, and the quality of tenants will be better.
- With a property management company, you will be able to fill vacancies faster. You will have shorter vacancies and increase profits by keeping the property in service.
- Property management companies will have a network of professionals and contractors. This will save you maintenance costs.
- Tenants prefer to work with property management companies because they are more professional and smoother.
Conclusion
The property management industry, like all the other businesses, is constantly evolving. In NYC too, companies offer something new or different to attract clients. Technology plays a big role in this and makes it possible for clients to get better service at a lower price.