Handling a lease agreement on your own is a great way for property managers to save a little extra and gain valuable experience. Property management isn’t easy, and lease agreements can get particularly tricky for do-it-yourselfers, with numerous pitfalls that promise to trip you up along the way. As a New York property management company here in New York, Peridot Management Group has been through it all. That’s why we’ve put together this list of the top 5 mistakes DIY property managers make when they choose to take on lease agreements themselves.
Most property managers post available listings on Craigslist and other websites or realty groups. Creating a new post for every hosting platform available can be a daunting task, and owners often end up posting in only one or two specific places. This can reduce your chances of finding the best possible tenant or prolong the vacancy of a unit. Take the time to research beyond the most popular listing sites. And, be sure to update and repost regularly, as places like Craigslist prioritize the most recent listings.
Poor Background Checks
Finding the right tenant should always be the priority. It can be tiresome maintaining the listings of a vacant home or apartment. A tenant that doesn’t pay rent can cost you much more money down the road than waiting weeks or months for a tenant that pays on time for years. A property management company will have the proper screening process for finding an honest and reliable tenant.
Below Market Lease Rents
It may seem like a good idea to keep rent rates lower to attract more applicants. Don’t be fooled. Keeping the rent competitively priced will guarantee that you find higher quality tenants and you’ll be better able to maintain the building. As property units age, the maintenance becomes more frequent and more expensive. Keeping your rent rates up to par will set you up for success when it comes to maintaining your property value. Tenants will stay longer in a building that is well taken care of, too. Pricing your rental rates can properly be handled by an experienced and knowledgeable property management company, as they are in the know with current property trends and rates.
Inconsistent Lease Enforcements
Rules are rules. Whatever the lease agreement states, as far as when rent is due, how the tenant may contact you, etc., enforcing these rules consistently can be a giant hurdle. Allowing tenants to fall behind on rent, or making exceptions because of personal circumstances or on a case by case basis is never a good idea. By having a property management company enforce these lease agreements, you can save yourself the hassle and stress of having to enforce these rules alone.
Complete the Rental Agreement and Move-In Condition Report
Owners will sometimes forget to complete the move-in condition report. Updating the rental agreement forms so they reflect the current legislature, rent rate, and policies is another task that you will have to handle on your own if you choose to go without a property management company. These forms will protect your investment and give you the right to withhold the security deposit if the apartment is left in poor condition. Mishandling this process can result in lost revenue and damage to your properties.
Peridot Management Group
Property management isn’t easy. Most property owners prefer to let a company manage their lease agreements for them because a property management company will have the resources, time and expertise to take the best care of a rental unit. Peridot Management Group is one of the best New York Property management companies in business today. For more information on how we can help with your residential lease agreement, don’t hesitate to contact us.
Are you trying to determine which of the New York property management companies is right for your needs? We can help you make this decision. At Peridot Management Group, we manage commercial, industrial, and residential buildings in New York and surrounding areas. Our goal is to make life easier for a property owner with our comprehensive package of services. Whether it be renovation oversight and furnishing procurement, rental management, accounting, expense tracking, and more, we have you covered.
Owning real estate in New York can be stressful, and the competition is fierce. But, our team will take care of all the details and ensure that your enterprise is profitable. Here are a few of the services we provide that will maximize your profits, while keeping your costs down.
Renovation Oversight: Our Commitment to High Standards
Getting the job done correctly, on time, and within budget is imperative. You need a team that can oversee the project from beginning to end to ensure timely completion. It is essential that your renovation project meets market expectations. At Peridot Management Group, we work with the most highly skilled contractors and vendors. Throughout the project, we maintain direct contact and supervision to make sure no unexpected problems or costs arise. From concept to completion, your renovation project will be handled with utmost proficiency to provide a truly positive outcome.
Furniture Procurement and Inventory Services
Furniture procurement services are an excellent resource for property owners. Furnishing your commercial property can be time-consuming and expensive, especially if you aren’t familiar with the market. Using a professional procurement company can take the guesswork out of this aspect of your business, and save you time and money. How do they do it? At Peridot Management Group, we utilize an extensive network of decorators who are experienced with commercial accounts. These highly skilled individuals know what to buy and where to buy it in order to minimize costs.
Once your furnishings are in place, the services extend to helping you keep inventory. This is a vital service you’ll need if you have tenants. Part of the inventory process involves having tenants sign an inventory statement. This document will be used when the tenant vacates the premises to ensure that any damaged or missing items are replaced.
Other Property Management Services Available
Hiring a property management service can be perplexing. You want a company that is ethical in all aspects of the business. After all, this is your livelihood, and your investment must be protected. In your search for the best property management companies in New York, you’ll find that they differ in the range of services offered. For instance, do they provide services such as expense tracking, rent collection, transparent accounting and tax information, or respond promptly to maintenance issues? Peridot Management Group provides those services and many more.
It’s also important that you look for a management company that will respect your tenants to ensure long-term occupancy. Another valuable service you should expect is a communication strategy that works for everyone. You need to know what’s going on with your property at all times. The “no news is good news” approach isn’t acceptable. Agree on times, frequency, and methods of contact that accommodate your needs.
These are just a few highlights of the things you should expect from a property management company. For more information about how Peridot Management Group can help you create wealth and success, contact us today. We will be pleased to answer any questions you may have about our services. Our professional property management team is committed to making sure your role as a property owner is stress-free and profitable. We look forward to hearing from you.
Managing your own property may seem like an ideal situation when first starting out. You will save money on real-estate fees from a property management company and be able to directly manage your units and interact with your tenants. This may seem like a win-win scenario. But, it is important to know that DIY property management can hold considerable risks. Whether you are considering residential or commercial property management, investors should first consider these pitfalls common to DIY property management before deciding whether or not to hire a real property management company.
Inadequate Tenant Screening
Failing to screen tenants properly can lead to costly problems down the road. Often, private landlords are not equipped with the tools or expertise to screen applicants thoroughly. They instead rely on limited information and intuition. Landlords may not have access to an applicant’s past rental history (available to property management companies through an industry database). Due to this they may not be able to conduct adequate background checks. Failing to check all of these screening criteria can mean renting to a tenant who can end up costing valuable time and money. A property management company can carry out all of these checks on tenants. They can look into their financial, personal and work histories to find the best tenant for your vacancy.
Not Understanding Legal Rights and Responsibilities
A landlord should be up to date on both their legal rights and responsibilities, as well as those of their tenants. These rights cover a broad spectrum of obligations, from security and repairs to eviction and rent increases. As a landlord, you will need to be sure all leasing documents are current and compliant with the law, as well as ensure that both parties are following the rental agreement. There is a complicated and fluid system of laws surrounding landlord/tenant relationships. And, not understanding these laws may lead to a breach of law (from either party) with costly mistakes.
Failing to Collect Security Bonds
A bond is a security deposit which the landlord holds in the event a tenant defaults on their rental obligations or causes property damage. Many private landlords fail to collect this bond, which is an essential part of the landlord/tenant agreement. This leaves them no recourse at the end of a bad tenancy. This bond ensures some degree of compensation and coverage of your financial losses, should it be required.
Failing to Conduct Regular Inspections
Inspections are essential to ensure tenants are both compliant with leasing agreements and happy as well. Inspections are also set out by law in each state. And, failing to implement regular checks may lead to legal action and/or penalties. Many private landlords fail to conduct regular inspections, either from lack of time and organization or because they want to avoid confrontations with tenants or maintenance costs. There are many reasons landlords fail at regular inspection. But, the risks can be costly. Regular inspections give you both the peace of mind that your property is in good condition and that tenants are following the rules.
Professional Property Management
Engaging the services of a professional and reputable property management company can reduce your risks substantially as a property investor. They will ensure the tenants in your units are properly screened. They will also take care of issues like tenant disputes, delinquent rent payments and maintenance problems. All these things can save you time, stress and money. For those thinking about cutting out the middleman to save money, take into consideration these common risks to determine whether DIY property management really will save you money in the end.
New York is the city that never sleeps, and neither does its real estate market. With its population constantly changing, the rental landscape changes as a result. Compared to the rest of the country, real estate prices remain high. But, the days of continuously increasing rents seem to be over. Increases in rental property development have caused New York City rents to stagnate over the past year or two. Life moves quickly in New York City. And, property management companies have had to move quickly to keep pace with these changes. New York property management companies, which oversee large numbers New York rental properties, have come up with some creative strategies to meet the needs of their clients.
Traditional Role of a Property Management Company
New Yorkers are masters of outsourcing, and New York property owners have long outsourced their needs to property management companies. Property management groups allow property owners to enjoy the benefits of owning property without the headache of day-to-day management. At the Peridot Management Group, we offer a broad array of services to make your life as a property owner easier. We take care of all the financial details, including rent collection, expense tracking, and detailed accounting and tax information. On a day-to-day level, we handle all tenant requests, repair requests, and maintenance issues as they arise. Should your property require extensive repairs or renovations, we have a team of trusted vendors and contractors ready for your review.
On a legal level, we track changes that may affect you as a landlord and can represent you in any board meetings or court appearances if necessary. In a nutshell, we handle anything and everything pertaining to your property. We want things to run smoothly for you and your tenant, without you having to lift a finger. We pride ourselves on our attention to detail and our commitment to service.
The Changing Role of Property Management Companies
There have been recent changes in the New York real estate market. And, property management companies have had to change the way they do things. An influx of available rentals has increased the city’s rental inventory, giving prospective tenants and renters with a lease up for renewal the upper hand for a change. New York property management companies have had to employ new strategies to attract new tenants or to keep the ones they have. Companies may offer current tenants concessions such as no increase in the rent if they extend the lease. The concessions offered to new tenants are more varied and creative.
Some property management companies are offering to wave the broker’s fee, offer one or more months rent-free, or even throw in a gift card with a signed lease. Others, especially those trying to stand out in a crowded real estate market, throw in more unusual gimmicks, such as puppet shows for kids or cooking classes for adults. No matter what the concessions are used, the goal is to find tenants for the properties and keep them occupied for the long term.
Our goal at Peridot Management Group is to keep your property rented and running smoothly, no matter what it takes. From tried-and-true methods to creative concessions, we are here to meet your needs as a property owner. We want to keep your properties occupied at all times, minimizing expenses while maximizing income. We can think outside and inside the box in order to find you the best tenants, keep them satisfied, and keep your property in prime condition at all times.
If you’re a property owner that has been handling all aspects of property management, rentals, repairs, rent collection and vacancies, you may ask yourself from time to time whether it’s all worth it and whether it is time to hire one of the many property management companies out there to take over the day-to-day tasks. You may be unsure about whether your ready to invest in a property management company. That is why we’ve put together a list of the 5 signs that mean you’re ready to take the next step and relieve yourself of the burden.
Number of Units Owned
If you own one or two properties, especially small ones, collecting rent and dealing with maintenance issues may be totally manageable. However, if you own a large apartment building or several rental properties across multiple locations, dealing with the many diverse sets of tenants can be a challenge. When it comes to hiring contractors and supers or dealing with vacancies, it can be a challenge juggling multiple properties at once. If you live in New York City, the needs of a unit in Brooklyn is dramatically different than another in Queens. Managing a property on your own can be a detriment to your earning power. In this case, it is probably best to hire a New York property management company to take over.
Property Owned is Far Away
Just as a rental unit in Brooklyn differs dramatically from one in Queens, if you live outside the state in which the property you own is located, keeping track of everything can be downright impossible. Handling vacancies and finding the right tenants is the primary challenge. But, finding a contractor that will do good work at a decent rate is another. If you own multiple properties that you live far from, hiring a professional service will streamline your revenue. A good property management company can handle many different properties with ease. They can understand the local legislation, as well as have a system in place to locate – and attract – good tenants.
You’re Just Getting Started
If you’re a property investor that is just getting started, it may be in your best interest to hire a property management company that can help you start off on the right foot. Maybe you own a single property, and the price can be expensive, but so can learning as you go. If you’ve got a full-time job on the side and you’re just getting into the property investment game, allowing a team of professionals to handle your investment is worthwhile down the road. Taking it on yourself is a time consuming endeavor.
Vacancy Rates are High
One of the primary functions of any property rental company is to limit the vacancy of your property. If the vacancies are high, it is probably time to hire someone else to take over. You’ll be glad you did, even after you pay the fees for the services.
There Just Isn’t Enough Time
Managing a single property can be a full-time job. Overseeing multiple rental units, dealing with repairs, maintenance, superintendents, tenant complaints and contracts is time consuming. Whether you want to sit back and enjoy your time, allowing your property investment to grow on its own, or you already have a full time job, property management companies will take the burden off your hands and give your time back to you. Take that vacation you’ve always dreamed of, focus more on the things – or people – you love.
Peridot Management Group is located in New York and has a wealth of knowledge and experience dealing with all kinds of property units. If you’re ready to take the next step and increase the earning power of your rental with a property management company, contact us today.
At first blush, it may seem like hiring a commercial property management company isn’t worth the cost. After all, it’s expensive. However, as a property owner, priority number one is always maximizing the earning power of your investment. A top-notch property manager will not only pay for itself, but will increase your building’s overall earnings, putting more money in your pocket and giving you more time to enjoy your life.
Possibly the most costly situation for any property owner is a lasting vacancy. Time is money, after all, and the longer a room, apartment or property is vacant, the more costly it becomes. That’s why vacancy prevention is one of the chief concerns for any real property management company. With a dedicated team of individuals and a wealth of knowledge, a property management company will be able to set rates faster – and more competitively – than an individual. They’ll also be able to put employ effective marketing strategies. All this adds up to a property that will be filled in a timely manner.
A commercial property management company will increase your cash flow by maintaining an efficient rent collection system, adhering to all the legal requirements of the state, so you won’t have to worry about a thing. Collecting rent from tenants can be a more complicated process than you’d like. And, if you own multiple commercial properties, keeping track of everything can be difficult. This is where the experience and the organization of a commercial property management company comes in. Their experience will ensure your tenants pay rent on time, month in and month out.
Property Maintenance Savings
Because of the high volume of properties that are often managed, a commercial property management company can acquire lower bids from contractors. Oftentimes the repairs happen faster and are done by vetted professionals that provide quality craftsmanship. A property management company will also be able to spot potential property problems early on, often fixing them before they become a more costly situation. Using contractors that are professional ensures that the quality of the work is high and that it maintains the value of your property over time. This will ultimately increase the income a single property can bring in.
One of the best ways that a property management company can cut expenses is by making sure that the quality & reliability of your tenants is very high. Working with realtors to vet the tenants decreases that chance of nonpayment, which in turn decreases the amount of evictions. Quality businesses tend to stay longer, pay on time, and treat the property with more respect. Decreasing those vacancies and non-payments increases the consistent cash flow for your properties.
Commercial property management can be a stressful, round the clock job. Having a dedicated commercial property management company handle business for you means you’ll be able to put your feet up or take a vacation from time to time. Time is money, and you’ll have so much more time on your hands with a dedicated team of professionals managing your property.
A property management company will oftentimes have lawyers on retainer that ensure adherence to all the local laws and are there to advise you if any situations arise. Some of the most costly expenses for any property manager can be the failure to comply with the changing legislature surrounding property rental. This won’t be a concern for you, as you can rest easy that an experienced lawyer has your back.
Contact Peridot Management Group today to start saving money and time in your commercial business!
How often should rental property management companies raise rent on their rental properties? Theoretically, no more than once per lease. However, the reality of rental management is far more complicated than a simple numerical answer. Landlords are free to set rates for rental properties, and tenants are free to pay or reject them. Landlords who rent below market rates will quickly find tenants and thus have few vacancies, but do so at the expense of taking in less revenue. Landlords that set high rates end up with unprofitable vacancies and soon have to reset their rates closer to market value.
Rental vacancies are low, which tends to favor an increase in rent values. Before raising rent, it is important to keep in mind a few factors. Let’s look at how property rental companies can stay profitable in a highly competitive market without losing tenants. The business of regulating and raising rents doesn’t have to be stressful and can be a balanced negotiation between tenants and rental property management companies.
Evaluate the Market
Evaluate lease agreements every six months. You don’t have to change rents this often, but it’s important to keep abreast of rental market developments. By checking out competitive listings in your area regularly, you ensure your property is priced according to current market conditions.
When vacancy rates are tight, like today, landlords often increase rent. If vacancy rates are low, finding tenants is harder, and management companies may find themselves discounting their rents to entice renters. Keeping your finger on the market as well as current inflation rates allows you to be prepared. Charging your tenants a little more on an annual basis may be a more comfortable increase for both of you, rather than springing a huge adjustment on them in a few years in an effort to catch up with inflation.
It may also be useful to evaluate your tenants. Do you value any of your tenants for their reliability? Are you willing to risk losing them? Sometimes, having reliable tenants who care for the property and make rent regularly are worth keeping.
Raising the Rent
If you’ve decided to raise rents, you’ll need to give tenants appropriate legal notice. This is different between states, but typically sits between 30 and 60 days. If your tenant is on a fixed-term lease, rent increases will be stipulated by the existing rental agreement. Few tenants will be happy about a rental increase, so it’s important to communicate openly with renters.
If possible, plan ahead for your next increase by building it into your lease. This will give tenants significant notice and allow them to prepare for increases well in advance. Raising rents can be stressful for both sides, but operating within a structured process will bring success.
Right of Tenants and Landlords
For some communities—mostly in large cities like New York and San Francisco— there are rent control laws in place, restricting landlords from setting rents at or above market price. Different communities have different laws, and it’s important for both tenants and landlords to know their rights and terms of rental agreements in order to ensure lease changes are legal. Also, be aware that each state has different laws regarding the notice tenants must be given of increases, which is often dependent on how much the increase is. Here is a convenient resource for rent control laws in cities and states nationwide.
Raising the rent for rental properties does not have a “one size fits all” approach. We have covered some of the most important considerations to factor in if you’re thinking of increasing rent. For expert advice regarding rental property management for both tenants and landlords, contact Peridot Management today.
Evictions are stressful for everyone involved. Property management companies in New York can often avoid the eviction process altogether with a strong screening process. Unfortunately, not every eviction is avoidable. Landlords sometimes face an obligation to maintain the value of their property or the safety of other tenants. It’s important to know what your rights are as a landlord in an eviction process. For tenants, it’s equally important to know your rights if you have been served an eviction notice by property management. Let’s take a closer look at the legal requirements of the eviction process.
Legal Reasons for Eviction
Typically, a lease is signed between both parties when the tenant moves in, which should state the payment terms and effective lease dates. Most likely, it contains a list of prohibited actions, which could leave to eviction. If these rules are broken, the landlord has the right to evict the tenant. These prohibited acts could include but are not limited to:
- Failure to pay rent on time
- Criminal activities or use of illegal drugs
- Subletting without written permission
- Damage to the unit or other tenants’ units
- Having a pet (when prohibited)
- Smoking in the unit (when prohibited)
- Exceeding the number of agreed upon tenants
Illegal Reasons for Eviction
A landlord cannot evict a tenant because they “feel like it.” A lease is a legally binding document, which means tenants can only be evicted by failing to uphold the lease terms. Discrimination is forbidden in the housing industry—The Fair Housing Act forbids any housing decisions based on race, color, national origin, religion, sex, disability, or presence of children. If tenants suspect they’re being evicted for these reasons, they should report the landlord/property management company to the housing department.
The Eviction Process
- Property management must give tenants proper notice, between 30 and 60 days, before the eviction date. This protocol must be observed for eviction to be legal. Some states do allow for a shorter 3-day eviction if the tenant has committed a serious act, such as assault, domestic violence or chronic failure to pay rent. It’s important to learn legal protocols for serving a notice within your state.
- The reason for an eviction does not always have to be stated on the notice, although some exceptions exist. The notice must identify the tenant, which unit they are renting and the person responsible for the unit (typically the landlord). If the eviction concerns the non-payment of rent, notices must include a valid address where property management can receive payment.
- Tenants must be served an eviction notice in person, via mail or on the door of their unit. Federal law entitles the due process of law if fundamental rights are compromised, which includes public and private housing. Telling a tenant verbally, giving the message to a relative or friend or just assuming they know it’s time to leave will not be covered by the law.
Although the eviction process is stressful, all aspects must be properly observed to remain legal. Once an eviction has been finalized, it’s important both parties follow regular move-out protocols. Property management should still process a tenant’s security deposit claim and perform a final inspection of the property.
Property Management Companies in New York
Evictions can be a minefield for property management companies. That being said, tenants should know their rights when dealing with evictions. If you have any questions regarding an eviction, contact a lawyer or a property management company in New York. If you’ve wondered– “Is there a property management company near me?” — look no further than Peridot Management, located in New York City. We are here to answer your questions regarding evictions, both for tenants and property management companies.