Real estate ownership is never a walk in the park, even for seasoned property owners. While owning property in New York represents financial stability and security, it also comes with huge responsibilities. Among these responsibilities is the maintenance of the property, which encompasses everything from repairs and upgrades to regular cleaning and upkeep.
However, not all New York real estate owners have time, extensive knowledge or experience managing market properties, making maintenance even more daunting. That’s why Harlem Property Management offers these services.
What Are the Responsibilities of a Real Estate Management Company?
1. Property Maintenance and Repairs
The first responsibility of a property management firm is ensuring that the market properties they manage are well-maintained and in good condition. This usually includes regular maintenance tasks like cleaning, landscaping, repairs and other maintenance requests by the residents. Experienced property managers are familiar with all property types, such as homes, apartments, vacation rentals and commercial properties like office buildings, retail spaces or warehouses.
These preserve your property’s value and ensure both current and potential residents have a comfortable living and functioning environment.
2. Resident Relations
A real estate property manager also handles resident relations. These include finding potential residents, handling lease negotiations and collecting rent payments. They also act as a liaison between the owner and the residents, addressing any concerns or issues. Good resident relations help maintain a positive reputation for the property and ensure consistent rental income.
3. Financial Management
Managing the financial aspects of an investment property is another important responsibility of a real estate management company. This includes budgeting, tracking income and expenses and providing regular financial reports to the owner. They also handle tasks including setting fair pricing rates, rent collection and paying property taxes and other bills on behalf of the owner.
Most property managers have flexible rental payment methods like online payments, which make it easy for residents to pay their rent on time and help streamline the collection process. They also keep detailed records of all financial transactions related to the property, making it easier to track income and expenses for tax purposes.
4. Marketing and Advertising
To keep properties occupied by suitable and potential residents, real estate and property management services market and advertise the property. This involves creating listings, taking photos or videos of the property, and promoting it through social media and online rental websites. They also handle the screening process of potential residents to find the most qualified candidates.
5. Legal Matters and Compliance
Real estate property management companies must ensure that all their managed properties comply with local and state laws and regulations. These include staying up-to-date on any changes or updates to these NYC housing & compliance laws, ensuring that all necessary permits and licenses are obtained and handling any legal issues that may happen. Failure to abide by these laws can result in penalties or even legal action against the owner.
Reasons That Can Lead to Property Distress Resulting in Investment Failure
Without experience, knowledge and proper guidance, real estate investment can be a risky endeavor. While many investors manage their properties on their own to avoid additional expenses on professional property management fees, they often overlook the potential risks and issues that can lead to property distress.
Here are some reasons that can result in investment failure when not addressed properly:
- Economic Recession. One major reason for real estate properties to go into distress is economic recession. During an economic downturn, people tend to lose jobs or experience reduced income, making it difficult to pay their mortgages. This leads to their investment property foreclosing, causing financial distress for both the homeowner and the lender.
- Poor Property Management. Another common reason for real estate properties to become distressed is poor property management. Lack of property maintenance leads to low occupancy rates, high vacancy costs and deferred maintenance issues. These can significantly reduce the property’s cash flow and value, making it difficult for the owner to cover expenses and make mortgage payments.
- Natural Disasters. Hurricanes, floods, earthquakes and wildfires can also cause distress to real estate properties. These natural calamities can damage properties and make them unlivable or uninhabitable. In some instances, insurance may not fully cover the repair and rebuilding costs, forcing property owners to abandon or sell their properties at a loss.
- Excessive Debt. When property owners take on too much debt through mortgages or loans, they may struggle to make payments, especially if there’s a decrease in property value or an increase in interest rates. In such cases, property owners will need to default on their loans, risking their property of foreclosure.
- Legal Issues. Lawsuits, zoning disputes and code violations can also lead to real estate properties going into distress. These issues can tie up the property’s title, making it difficult to sell or refinance. Moreover, legal fees and fines can add up in a snap, putting a strain on the property owner’s finances and causing them to fall behind on mortgage payments.
Signs of a Bad Real Estate Property Management Company in New York
- High Vacancy Rates. High vacancy rates are among the first signs of a bad full-service property management company. A reliable property management company should have strategies in place to keep vacancy rates low, such as effective marketing, market analysis or resident retention techniques.
- Lack of Communication. Every business relationship should always have clear communication, which also applies to property management companies. A bad full-service property management company may not communicate effectively with property owners, leading to frustration and confusion.
- Neglecting Maintenance and Repairs. A good full-service property management company should have a good track record in maintaining properties and taking care of necessary repairs. However, a bad property management company may neglect these responsibilities, leading to deteriorating properties and unhappy residents. This can lead to a decrease in property value and potential legal issues.
- Poor Financial Management. Property owners rely on their management companies to handle financial matters related to their properties, such as collecting monthly rent, paying expenses and providing detailed reports. A bad full-service property management company may not have proper systems in place for financial management, which ultimately leads to delayed payments or even mishandling of funds.
- Lack of Transparency. Bad real estate management companies may not be transparent about their processes, fees or reporting the current market conditions. This makes it difficult for property owners to track their investments, potentially leading to hidden fees or expenses.
- Negative Resident Feedback. If residents consistently give negative feedback about a property management company, it’s a clear sign of a red flag. This could include complaints about poor maintenance, unresponsive staff or lack of communication. You need potential residents who are happy and satisfied to create a successful rental property.
- Legal Issues. A bad property management company may also bring about legal problems for property owners. This can happen due to mishandling of funds, maintenance and repair negligence or failure to comply with property laws and regulations. These legal issues can lead to costly lawsuits and damage the reputation of the property owner.
Need Professional Real Estate Management Companies New York City? Look for Harlem Property Management!
Are you a property owner in New York tired of dealing with the endless tasks and responsibilities of property management? You can always leave those responsibilities to Harlem Property Management. We have been providing exceptional management of real estate services to commercial and residential units for many years. Our goal is to make your life as a building owner easier and more profitable. With our extensive experience and knowledge in this field, we can handle every aspect of real estate management for you.
Working with us enables you to rest easy knowing that we will handle everything, including tenant screening, rent collection and studying the current market conditions. Our online portal provides instant access to all the information you need regarding your property, including financial reports and maintenance requests. We also provide regular and detailed property inspections to ensure your property is in top condition.
Our team of professional property managers has an extensive track record in providing quality and honest services to clients.
Call us now to learn more about our services and how we can help you achieve your financial goals and success as a property owner in New York!
