If you are new to investing in real estate in New York City, you may be anxious about making your first purchase of a home you intend to rent out. Most first timers will do plenty of research and speak to their family members and friends to decide what they should purchase. It is a hit or miss in the New York City housing market. Prices are fluctuating and recent research has indicated that rental prices are either flat-lining or decreasing in certain areas of Manhattan and Brooklyn. Renters have also been given incentives to rent such as obtain a free month of rent or extending leases over a year.
The homeowner today must know that attracts renters to the apartment building, townhouse or condo that they just purchased. If you have ever rented a home or an apartment in the past, then you should be familiar with what renters are looking for. Most homes are renting to families who are either saving for their own home, or new to the area and checking it out before the buy. As this is something that we have understanding of, our property management team can help answer any questions you may have during the purchasing phase. We understand the New York City market whether it be a single family neighborhood in Queens or where there are more multi-family buildings such as the Bronx.
Here are few suggestions from the pros:
1) Try to look for homes that were built within the last 10 years. This will help keep down maintenance costs, and save you money long term.
2) Research homes or buildings that are not in busy streets. If it is a house you are purchasing, check to see if it has a fenced fenced yard. This is more attractive to a family of younger children.
3) Rental properties should have at least 2 bedrooms and 1 bathrooms. This is normally ideal and anything bigger than that is fantastic for renters. It is also important for the property be located in neighborhoods where home values are appreciating. This allows you as the owner to charge a higher rent.
4) Look into whether the property is located to establishments that are necessary or desirable. Good schools, easy access to subways and buses are examples of necessities. Being close to a great shopping district or great nightlife and dining would be considered desirable.
5) If you are intending on purchasing a property with tenants already in place, it would be absolutely necessary to interview them in order to gauge whether you can have a working relationship with them. It is advisable to meet them at their apartment to see the condition of it as well. This will save you headaches for the future. Some tenants are displeased when the previous owner leaves and can decide to do things such as withhold rent or destroy property. An interview can save the day and will help you with your decision on whether to purchase.
All the decisions that you make will affect you and the property long term. The better decision you make will in turn affect the types of tenants and rents you will be able to receive. By making informed researched decisions today, you and your New York City property management company will be excited with your future results.