For many the search for multiple streams of revenue is a way in order to retire early or living a more comfortable life for yourself and your family. Many local investors are earning this extra money by purchasing homes for rent in Brooklyn, New York. Brooklyn has become one of the biggest booming areas when in comes to investment properties. The average rentals now are close or exceeds their counterparts in Manhattan. May people have thought about investing in Brooklyn and in fact you might be one of them.
While owning a Brooklyn rental property, whether it be an apartment building, condo, co-op or 2 family home is a great idea and can bring in a substantial amount of money each month, it certainly can be a risky investment. Many beginning investors don’t realize all of the things that can go wrong with their homes for rent in Brooklyn, NY that can cost them quite a bit of money. As a matter of fact, here at Blue Harbour Property Management, we take on many clients that have purchased their first investment property. What we do notice is that they are not familiar with alot of expenses that come up with owning an investment property. That is of course one of the reasons they choose to retain a NYC property management company like us. We always discuss certain things that may protect your investment and reduce the risks you assume while owning an investment property. Below are a few ways to protect your investment.
- Good Insurance – If you have a mortgage on your investment property, you will be required to have homeowners insurance. Even if you are not required to carry homeowners insurance, you should definitely maintain a homeowners insurance policy. Also as you will have tenants you should definitely obtain a homeowners policy that is above the standard policy. There are several policies that you can maintain that would have a more comprehensive coverage. You should always advise the investor to seek guidance through their insurance agent but we generally see that a market policy which would cover for market value loss or a Tenants and Cooperative Policy which cover tenant’s losses would be a great idea to have. It’s pertinent that you have good insurance policies that cover your rental properties; otherwise you may find yourself losing money with these properties in the event of an accident.
- Require Renters Insurance – If you’re really serious about lowering your risks, then you should require that the tenants of your homes for rent in Brooklyn, New York purchase renter’s insurance. Renters insurance is very inexpensive and it provides more coverage for the tenant in the event of an incident. Since tenants can make claims on their renters insurance if something happens to their rental and/or possessions, then you won’t have to worry as much about being held liable for the damage.
- Have the property inspected and safeguard any areas where there could be a potential for liability. The majority of cases filed against rental property owners generally have to do with negligence either by the owner himself or his NYC property manager. To ensure this doesn’t happen to you, your NYC property management company should make regular inspections to make sure dangerous conditions are taken care of immediately.