Managing Investment Property In New York
Posted by Wei Min Tan on June 14, 2019
Once our foreign investor client purchases an investment apartment through us, we also oversee the property for the client. This includes marketing the property to potential tenants and handling any issues that may arise.
How We Manage The Property
Our main objective when overseeing the property is to have the apartment rented out as soon as possible to a highly qualified tenant. And from there, manage the tenant relationship so that both landlord and tenant are happy.
On operational matters such as coordinating repairs (if fridge/microwave needs to be changed, if we need to call a plumber…) we can be the point for owner. Alternatively, we can refer owner to a property management company to oversee the day-to-day issues.
Investor client’s condo with double height ceiling located one block from World Trade Center. High floor and water views makes this very attractive to tenants.
The Activities We Perform
The two main activities we do associated with overseeing the property are:
(1) Marketing the property for rent:
This is the rental part of our business where we help clients market the investment property for rent, show to potential tenants, coordinate the necessary paperwork, perform tenant screening and arrange for tenant move in.
In Manhattan, the broker fee for rentals is paid by the tenant. Hence, there is no cost to the property owner. A tenant renting a condo apartment in Manhattan typically pays about 15 percent for broker fees which gets split 50/50 between the landlord’s agent and tenant’s agent. Note that the agents are representing their respective clients despite fees actually coming from the tenant.
Activities we perform to rent out the apartment to tenants include:
– having the property professionally photographed
– distributing property details to the broker system, real estate websites, social media
– present the property during tenant showings
– coordinate the application process
– review tenant credit history and financials
– coordinate submission of the board package
– coordinate tenant move-in
Investor client’s condo in Midtown East. Close to United Nations, Citigroup Center, Blackstone, Blackrock. Rented to highly qualified tenant almost immediately.
(2) Handling issues:
Since the property is a condominium apartment, issues that arise are less than if one owns a building. With a building, the roof may leak, the boiler may break, etc. With a condo, the biggest concern for the landlord is a non-paying tenant, in which case the owner would need to file eviction proceedings. This is rare because a tenant able to rent a Manhattan condominium apartment usually has high income and high credit scores. Screening the tenant is very important to mitigate risks of non payment. If eviction is required, we would arrange for a landlord-tenant attorney to handle the process.
Most of the issues that may arise are manageable – broken toilet, items need tightening, microwave not working, needing to call a plumber, needing to repair the fridge or microwave etc. Some of these items can be handled by the building staff while others will require our (or the property management company’s) involvement. In either case, we have a system in place to handle issues with the objective of maintaining good landlord-tenant relationship and maximizing owner’s rental income.
What We Do
We focus on global investors buying Manhattan condos for portfolio diversification and long term return-on-investment.
1) Identify the right buy based on objectives
2) Manage the buy process
3) Rent out the property
4) Manage tenants
5) Market the property at the eventual sale
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