Real estate is a sound and practical investment, with so many New Yorkers now opting to rent instead of buying their homes. The current state of the U.S. housing market indicates that there is an insufficient supply of affordable housing for potential buyers. This is the perfect opportunity to rent out your property, especially since a lot of younger renters are stuck with debts and loans or simply want the flexibility of not being tied to property ownership.
Meanwhile, being a landlord can be daunting and a difficult endeavor, especially if you are only starting out and don’t know what you’re doing. From preparing your property to listing it on the market to finding and screening tenants to rent collection, among others, it can be all pretty overwhelming. So, to help you get started, here are some valuable tips you must be aware of:
Know the Laws
As a new landlord, it is a must that you become familiar with the fair housing laws. Some landlords do not educate themselves with this information, and some play it fast and loose with legalities.
Every state, including New York, has its own Tenant and Landlord Act, which covers everything from screening procedures to security deposits to the obligations of both parties involved in the legal agreement to evictions. Make sure you get a copy of the necessary legislation in New York from the Department of Housing.
Check and verify that all your contract documents, screening processes, and interactions with the tenants all comply with the guidelines. Knowing this will eventually help you stay out of any civil court, and you will also have happier tenants. Make sure you also obtain the right kind of insurance coverage to keep yourself protected from any unfortunate circumstances that may arise.
Screen Tenants Properly
To ensure that your property will be in good hands and that you will have a hassle-free business, make sure that you choose the right tenants. Screening potential ones is a necessary step. Require credit and background checks on all applicants. It is your way of knowing if they are responsible—financially and in general—or not.
When reviewing potential tenants, look out for any red flags you see from the reports, such as bankruptcy filing, notable debt, poor credit score, prior eviction record, or undue payments. A robust background and financial history is an indication that your tenant will be able to pay rent on time, has no criminal records, and highly likely to treat your property with respect and care.
Consider Hiring a Reputable Property Manager
For new landlords, hiring a property management company in Brooklyn to help you with the process is worth the overall investment. If you want to save time, money, and effort involved in the whole renting process, a skilled property manager is your answer.
From marketing your property, rent collection, overseeing the maintenance of your property, and dealing with tenant issues, let your property manager handle all that. They can also help you manage multiple properties (if you have more), in the event that you find yourself too overwhelmed with the responsibilities that come along with being a landlord.
For your New York properties, let True Management NYC manage them for you. We will take any burden of property management off your shoulders. We will handle everything you need from automatic rent collection to financial accounting, NYS filing, and repair.
We have a 24/7 emergency service that you or your tenant can call in case something happens during odd hours of the day. Contact us today to know more about our services.