New York based property management firm, All Area Realty Services blog. Find tips for Co-Op Boards & Residential Building Management.

What You Need To Ask When Hiring A Property Management Company

Posted by All Area Realty Services Team on Jun 12, 2019 4:54:17 PM

Do you own property and are looking for the right property management company? Here are some things to ask before hiring a property management company.

In New York, a property manager needs to be a New York State licensed real estate agent. Beware of property managers who do not have any sort of state license to practice real estate. Ask how many properties that the property manager is managing and what type of properties (duplex, small building, condos etc.) because the management of the property varies depending on what type.

Most management companies are paid based on the amount of rental income the property generates. However, there could be extra charges like tenant finder’s fees, maintenance markups, emergency on all services, maintenance reserves, evictions, court costs and other charges. Ask your potential property manager to clearly outline the fee structure in writing.

With income property, your financial data is really important to see what areas you can improve and how to make more money. A property manager needs to be able to explain everything on your reports in a clear and concise manner. Clarify when and how each report will be delivered to you.

A professional property manager will have a system for screening potential tenants. Make sure you understand what is done in the screening and who makes the final determination about the potential tenant renting the apartment.

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Every property will need maintenance at some point. Find out who does the required maintenance at your property. Your property manager needs to understand what needs to be done in regards to the type of work, the correct licenses and certified contractors for the work and if there needs to be permits. Keep accurate records of what has been done and by whom.

Ask about how the rent is collected. Most property management companies have a policy on rent collection. Each lease should outline exactly when rent is due, the amount and late fees. The lease should state when the tenant is in default and when the eviction process can begin for nonpayment. Property managers need to have sample documents like leases, property management agreements, move in/move out condition reports, property owner financial reports, rental applications and common correspondence. In regards to the property management agreement, understand the terms of the agreement, including length of the term, renewal of the agreement, and how to end the agreement if either party is not happy with the partnership. Have an attorney review the agreement before signing it.

Finally, ask about references. Speak to people who have worked with the property manager and ask them to tell you both good things and bad things (if there are any). Be careful of property managers who cannot provide references.

These factors will help you in finding the right property manager for your investment property to grow and thrive.

All Area Realty Services knows what it takes to run buildings smoothly and efficiently while keeping both tenants and owners happy.  With over 30 years of experience, and many clients with All Area Realty Services for decades, All Area can be trusted with taking care of your building and tenants. 

Topics: Co-Op Board, Property Management, Condo Board Association, property manager

The Difference Between A Landlord & A Property Manager

Posted by All Area Realty Services Team on Jun 5, 2019 1:19:42 PM

iStock-855667636Welcome to NYC real estate where the options are endless! Should you pay a broker’s fee? Should you live in a new building? Should you live in a landlord operated building or a building operated by management? There are many things to look for when deciding on moving into a building operated by a management company as opposed to one run by the landlord.

A landlord owned and run building is where the landlord does the day to day management of the building. A building operated by a property management company is one where the landlord hires the property management company to run the day to day operations and to maintain the building. Landlord operated buildings tend to be smaller. If you want to be able to bargain, consider renting directly from landlord only managed building.

Landlords and property managers are similar because both are responsible for maintaining and running a building. Other duties include vetting tenants, resolving maintenance requests, collecting rent, upkeep of the property, and tracking property expenses.

Some differences between landlords and property management companies are when dealing with a landlord, it is a more personal relationship. While this can be beneficial if the landlord is trustworthy and cares about his tenants and building. It is detrimental when the landlord is delinquent and does not maintain the building. When you have a property management company, you are one of many and therefore, there is not a personal relationship, but property management companies are more diligent in resolving any maintenance issues you might have.

Whatever you decide, be aware that both landlords and property management companies must obey the local laws. In NYC, there are laws on heating, hot and cold water and overall safety and habitability of buildings. For more information on the basic living conditions that must be provided, look at NYC’s warranty of habitability guidelines

All Area Realty Services knows what it takes to run buildings smoothly and efficiently while keeping both tenants and owners happy.  With over 30 years of experience, and many clients with us for decades, you can trust All Area Realty Services with taking care of your building and tenants. 

Topics: Co-Op Board, Property Management, Rentals, Co-Op Building, property manager

Are You Thinking of Hiring a Property Manager?

Posted by All Area Realty Services Team on Mar 5, 2019 4:34:07 PM

 

Do you need to hire a property manager? Many property owners, condo boards, and co-op boards may be hesitant to hire one because a bad property manager can have long lasting effects, including financial, on your building.  However, hiring a great property management company is a great asset. Here’s some important characteristics to look for when considering a property management company.

Experience is extremely important. Ask how many properties they have under management and for how long.  Also ask if they have turned around troubled properties. An experienced property management firm will have thorough knowledge of local laws, regulations and standard operating procedures.

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A property manager should care for your property as if it was his or her own. Property managers should have a good understanding of the difference between internal rate of return and net present value and be able to calculate cap rates and cash on cash returns. This helps to see the big picture and to make informed and expertly guided decisions - together.

Persistence is an important trait because there will be delays with contractors, unruly tenants to deal with, and buyers who may have unrealistic expectations. When interviewing, look for a property management company that listens and has great customer service skills.

Having a successful property, is truly a balancing act. At times, the property manager will need to aggressively track down late payments and hold a contractor to task. Your property manager should always take on challenges on your behalf. 

A property manager will need to be extremely professional because he or she needs to get along with board members, residents, contractors and others. Look for someone who speaks professionally, treats others with respect, and does not shy away from responsibility AND accountability.

Communication skills, written and oral, are important because the property manager needs to convey what’s occurring at the property. Clear communication helps reduce disputes and ensures that the property runs like a well-oiled machine. Since there are so many moving parts, a property manager needs to be extremely organized.  Property managers need to be well versed in technology because new technologies are being introduced all the time.

How a property management company deals with problems is important because there are things that can go wrong. The more flexible the property manager is, the more he or she will react properly to any unforeseen situation.  They should be willing to think outside the box and be committed to ongoing improvement in how they service your property.

All Area Realty Services knows what it takes to run buildings smoothly and efficiently while keeping both tenants and owners happy.  With over 30 years of experience, and many clients with All Area Realty Services for decades, All Area can be trusted with taking care of your building and tenants. 

Topics: Co-Op Board, Property Management, Condo Board Association, property manager