How to Survive as an NYC Landlord
It's anyone's dream to own a property in the Big Apple. But reality tells us that it's far from glamorous.
Sure, it does generate a steady income flow considering how (despite current market conditions) New York City remains at the top of anyone's list of places to live in. But when you get to be a landlord, the amount of responsibilities and issues you will need to address could overwhelm you.
Making one mistake as an NYC landlord could leave your wallet dry or, worse, result in a costly lawsuit. But don't use this as a reason to back away from the massive income potential that only an NYC property can bring in.
Follow these tips and make the most of your assets as a Big City landlord!
Know all about local real estate laws
It's normal for any rookie to break certain ordinances or laws. But in the Big Apple, you won't get a slap on the wrist for committing an infraction.
The fines are more than enough to leave your bank account bleeding to death. So, before you venture into the real estate sector, make sure to review the laws you can't afford to break.
In particular, you will need to pay attention to the amount of application fees you are allowed to collect per tenant.
Learn how co-ops work
Aside from townhouses and condos, NYC is also home to probably thousands of co-ops. These are properties in which residents serve as shareholders who maintain the property they live collectively live in.
Because of this nature, co-ops are usually complex to rent out because each unit is subject to the decisions and management of a co-op board.
With that said, you only be subletting the unit, so make sure to learn as much as you can about how your co-op board approves or rejects tenants.
Recommended by LinkedIn
Learn that location is everything
With hundreds of neighborhoods sprawled across all five boroughs, you might find it difficult to look for an area with healthy rent growth and high demand among renters.
It pays to know if the property you're offering up for rent is located in a place where there's always a steady stream of new renters.
For this, get a real estate professional from the get-go to help you find a property located in places where it's bound to thrive.
Take tenant screenings seriously
As much as you want your NYC property to help you make money, that thought shouldn't cause you to skip the most essential process: screenings.
If you allow bad apples into your property, you are likely to end up with damages or deal with a tenant who is simply too difficult to please.
Before you start attracting renters to your NYC property, do background checks on candidates and ask for referral letters from their previous landlords.
Want to take your slice of the Big Apple Pie? Reach out to a professional realtor to help you make the most out of your investment.
Let's connect so I can help you learn the ropes of being an NYC landlord. Call me at 917-627-5677 or send an email to ehaliva@elliman.com so we can put your plans into motion.
Talk soon,
Eli
Real Estate Law Attorney Partner at Azoulay Weiss, LLP
1yAs a landlord tenant litigator, I agree that the key is a obtaining tenants with good credit and good financials so they have something to lose for bad behavior. Additionally a favorable landlord lease that includes legal fees as well as a holdover rate are good deterrents against bad tenants.