Are you a property owner or Board Member looking for a reliable property management company in New York City?
Maybe you own a residential apartment building, a condo or even a co-op. Or, perhaps you own commercial real estate. Regardless of the type of property, selecting the right property manager may be one of the most important business decisions you ever make.
The right property manager will have the financial, operations and customer service capabilities you need to operate profitably, ensure smooth operations, and manage tenant relationships properly.
Here are some things you should know before choosing a property management team:
Look At Years In Service & Credentials
A reputable, professional property management company will be comprised of trained, knowledgeable staff with hands-on experience working with properties in New York City. Find out how many years that firm has been in operation. Look for a company with at least 20 years of experience. Ask for local success stories and obtain their credentials.
Financial Analysis & Budgeting Abilities
Top building management companies in NYC (Manhattan, Brooklyn, Bronx, Queens) provide more than just daily management of your property. Look for a company that uses in-house CPAs. This is a tell-tale sign that the company is serious about achieving financial success and streamlining your cost structures. A firm that prioritizes cost analysis, budgeting, operations expenses, and revenue growth is a good sign that they are aligned to your goals as a property owner.
Ask if they look at your utility bills, for example, and how they go about securing better long term operations procedures for you. Find out if they can maximize your rental rates if you are a rental property. Skilled property management companies may look at your lease and uncover new revenue sources for you.
Do They Thoroughly Screen Tenants?
This should be on the top of every property manager’s priority list. The company you choose should utilize background checks to find out if a potential tenant has a negative history. This could save you from a potential loss and mitigate risk.
They Should Have a Punch List or ‘Take-Over’ Manual
In a recent interview with The Cooperator, our very own Metropolitan Pacific Properties managing director, Steve Osman, was interviewed. He expressed how important it is for a prospective property manager to have a punch list. “The punch list shows that the company has a sense of order. It’s your first sign that the company would know what it’s doing if hired by you”, CEO Steve Osman explains.
Ask for the Punch List and if the company does not provide it to you quickly, that’s a sign you will have potential problems in the near future. Find out how the NYC property management company goes about transitioning into the building, communicating with key parties and taking over financial responsibilities. The bottom line: Make sure they have a plan and can articulate it clearly to you. Go here to view more details of Mr. Osman’s interview: http://cooperator.com/articles/213/1/Your-New-Management-Company/Page1.html.
Can They Outline All Of Their Responsibilities Clearly?
In tandem with the Punch List, a good management company will be able to outline to you all of the responsibilities that they will take over in the long run so that there are no misunderstandings. Understanding how they manage vendor contracts, utility costs, payment processes, invoice reviews etc. as well as what they do for preventative maintenance and how they stay accessible to you are all important to understand upfront. The company should be able to provide you with some examples and case studies.
Will The Property Management Company Advertise Your Vacancies?
A good New York property management company will be assertive when it comes to advertising vacancies. Ask where the property manager advertises vacancies (real estate/rental websites, newspapers, etc.). You will also want to find out the average amount of time it takes to find a new tenant.
Find the Right Fit
Not all property management companies are cut from the same cloth, so-to-speak. Obviously, there are different property managers for different types of properties. It’s highly recommended to hire a management company that has a proven track record with your type of property.
For example, let’s say you are a commercial property owner and an unexpected situation arises, your property manager may not have the proper system in order to handle commercial properties. We recommend hiring a manager that has a breadth of experience in managing both residential properties and commercial properties. This will make managing your property a lot easier in the long-run.
Negotiate Terms of the Contract
Make sure you thoroughly read the Owner/Property Manager agreement. Some of the main items you will want to look for include the following:
• How the management company will procure all of the previous management company’s records to make for a smooth transition and what they will do if records are held hostage.
• Whether you or the property management company is responsible for keeping your tenant’s security deposit.
• How they communicate with the tenants in the building upon transition to limit any miscommunications and ensure that all parties understand the transition process and any subsequent changes.
• How they deal with delinquent tenants. You should also know how they handle eviction proceedings.
• What are the amount of days’ notice they require to end the business relationship? For instance, let’s say you are not pleased with their services, you should know upfront how many days’ notice the property manager requires to discontinue services. Most New York property management companies require a 30-60 day notice.
There are plenty more important things to look out for when choosing a property management company. These tips will enable you get started in the right direction.
Find a property management company in New York by contacting Metropolitan Pacific Properties at: (718) 626-4400 today.