CoreLogic sees Rent Growth to Moderate in 2017

CoreLogic, one of the nation's leading financial and property analytics companies recently released their Market Pulse for December 2016.  In their report, there were projections on housing growth nationwide with several key components showing growth in the next year.  Of importance to property managers in New York City were two major components that were addressed in the report, which were vacancy rates and overall rent growth for 2017.

According to Frank Nothaft, CoreLogic senior vice president and chief economist stated "vacancy rates will likely remain low in the rental market and decline in the homeowner market.  The low level of single family building means that for-sale inventories will remain lean in many markets."  Mr. Nothaft also says to expect home price appreciation in most markets with rent growth also continuing to grow but at a slower pace.  He is predicting rent growth of 3% for 2017 with home price index increase of 4.7% in the same time period.

Other key components to the report are the following:

1.  The economy will see growth between 2-2.25% in 2017.

      2.  There will be an increase in mortgage rates- Interest rates will average just over 4% next year, about 0.5% higher than in 2016, according to the forecast. The consensus is that the Federal Reserve will raise the Federal interest rate several times in 2017 which will affect the cost of overall loans.

      3. Less advantages to refinance- Higher mortgage rates will make originations of loans drop.

      4. Credit risk will remain low- New loan originations will maintain low credit risk. The first half of 2016 saw lower risk attributes than those made 15 years ago. Next year we can potentially see heightened fraud risks, but altogether credit risks are looking positive.

http://www.blueharbourpropertymanagement.com/corelogic-sees-rent-growth-moderate-2017/

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Surprise! Metro NYC Comes In On The Lower End of Affordable Cities According to Report

In a report that shouldn't surprise many in the New York City region, New York City rents are on the low end of major cities for being affordable.  Apartment List has released a report where they surveyed the top 100 metropolitan regions.  The survey is intended to find out what is the state of the national rental market.  It showed that over 50.6% of renters are cost- burdened throughout the nation.  Cost-burdened is defined as when a renter pays over 30% of their pre-tax income in rent.  The survey indicates that nationwide, the amount of cost-burdened renters has decreased by 1.2%.  This was attributed by median incomes growing faster than market rents.

The good news nationwide is tempered by the statistics for the NYC metro area.   The NYC area includes surrounding regions such as  Jersey City and Newark.  The report indicates that 54.1% of renters are cost-burdened in the area.  In another amazing statistic the increase in rent during the period of 2005-2015 has increased 13.8% while income has only increased 1.9% during the same period.

NYC comes in as the 83rd least affordable city in the country.  Cities falling below NYC are Los Angeles (#96), San Diego (#91) and Miami coming in last in the report.

With overall income in New York City not increasing in the same proportion of rents, renters are looking for more amenities when deciding on a new rental unit.  Competition in New York City for qualified renters has also been on an uptick and professional property management will be a key in obtaining and retaining tenants at the rents desirable for landlords.   Landlords should be seeking out professional property management companies that have a plan to maximize revenues and have sound customer service to comfort renters.  Minimizing upheaval of tenants should be a main objective of NYC property management professionals.

Blue Harbour Property Management is a NYC property management company that can assist landlords reach their income goals while maintaining the highest levels of customer service and professionalism.  If you are looking for a new apartment building management company or for you are searching for someone to take over an existing property contact us at 718-843-1185 or e-mail us info@blueharbourpropertymanagment.com.

http://www.blueharbourpropertymanagement.com/surprise-metro-nyc-comes-lower-end-affordable-cities-according-report/

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Using NYC Property Management Companies to Stay in Control if you have to Relocate

If has become commonplace for us here at Blue Harbour Property Management to take on the operations of properties for owners who live out of either the state or the country.  Whether it is because you were required to move for personal family reasons or your job requires you to relocate, you are in need of a provider that you can have faith in.  You are in need of a company that can ensure your investment returns and handle your possession in a professional manner.  New York City is a tough market.  One mistake with a tenant or valuations can have you in a loss for months if not years.

Here at Blue Harbour Property Management we have had plenty of consultations with owners that believe they can manage their property while abroad.  They miscalculate the complexities of dealing with issues over the phone or via the internet when they have been accustomed to being present in the event that an emergency arises. Sometime it may take hours if not days to coordinate with the proper plumber or contractor to fix the problems arising at a certain property.  Having a professional close by to troubleshoot issues will benefit you not only with respect to repairs, but in rent collection, compliance with housing laws, tenant vacancies and day to day general maintenance.

The only stream of income normally for apartment building owners is the rental revenue.  There is a plethora of roles you must fill in order to receive the rent.  Your duties would include being the chief marketer, maintaining and repairing the property, purchaser of supplies and appliances, landlord/tenant specialist for legal proceedings and collections manager just to name a few of the roles you play.  With all these roles having to be filled and you being away, wouldn't you be better off using a professional NYC property management company to work on your behalf?   An experienced property management company can fulfill all of the roles and also serve as a troubleshooter to assist in unforeseen circumstances.  Also, having someone available 24/7 365 days a week can alleviate a huge burden taken off of your shoulders.

Knowing someone is available at all times to speak to you about your real estate investment is a huge benefit.  You will be able to discern the present status of your holdings but also project with some certainty the income potential in future years.  With detailed financial reporting and complete transparency you will be in a much better position in attempting to manage your portfolio being away.  Blue Harbour Property Management offers specialized property management services to maximize your revenue potential through experience and excellence in the field of property management.  No matter where you are in the world, we will be able to get the results that are expected with New York City properties.

http://www.blueharbourpropertymanagement.com/using-nyc-property-management-companies-stay-control-property-town/

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Home Builder Confidence Soars to an 11 Year High

Home builders saw a boost in confidence in home building, not seen since 2005 according to the National Association of Home Builders/Wells Fargo Housing Market Index.  The increase brought the index level to a 70 which is a 7 point increase from the 63 measured for November.  A number over 50 indicates more builders view conditions as good than poor.  Regionally in the Northeast the Index indicates a 12 point increase from November showing a rate higher than the national average.  This is a good indication that sales and development of homes will increase as well as there be a growing need for property management services here in NYC.

The index is used by economists to track the inclination among home builders on whether they will start new home constructions.  The economic outlook would be bright as new projects would lead to new hires and more spending in the construction industry.  NAHB Chairman, who himself is a developer from Illinois says that there is a direct correlation between the election and the index.  He states  “This notable rise in builder sentiment is largely attributable to a post-election bounce, as builders are hopeful that President-elect Trump will follow through on his pledge to cut burdensome regulations that are harming small businesses and housing affordability.  This is particularly important, given that a recent NAHB study shows that regulatory costs for home building have increased 29% in the past five years.”

Sales of new, single-family homes are on pace to reach the highest level this year since the recession began in 2007. Chief Economist for NAHB Robert Dietz believes that the overall picture is looking positive.  “Though this significant increase in builder confidence could be considered an outlier, the fact remains that the economic fundamentals continue to look good for housing” he says.

There is one recent event that may limit homeowner's  ability to afford homes and that is the Federal Reserve's announcement to raise interest rates.  The assumption is by raising the central bank's  rate it would put pressure on the banks to increase mortgage rates.  There is also a  presumption that the Fed may increase rates a few more times in 2017.

http://www.blueharbourpropertymanagement.com/home-builder-confidence-soars-11-year-high/

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Home Sales expected to Expand Moderately in 2017 According to NAR. Buyer Enthusiasm Restrained

Home sales will expand moderately in 2017 amid consumer confidence abated by increased mortgage rates and affordability concerns.  According to the National Association of Realtors Housing Opportunity and Marketing Experience (H.O.M.E) survey, 57% of renters said that now is a good time to purchase a house.  Among present homeowner, 78% said presently it is a good time to purchase.  Both figures are below the last survey performed last year.  In 2015, tenant's confidence to purchase was at 68% while existing homeowners were at 82%.

The 2017 Housing Forecast Update which you can review here, is predicting that existing home sales will close out 2016 with an annual increase of 3.3% and reach about 5.42 million.  This will be the best year recorded since 2006.   NAR is also predicting that in 2017 existing home sales will increase slightly less at 2% to around 5.52 million. Home prices will continue to rise, increasing 5% this year and 4% in 2017, according to their predictions.  The forecast also predicts that interest rates will increase to 4.6% and the Federal reserve will raise rates to 1.25%.

NAR Chief Economist Lawrence Yun said “Although the economy is expected to continue to expand with around 2 million net new job creations, existing home sales are expected to see little expansion next year because of affordability tensions from rising mortgage rates and prices continuing to outpace income growth.  Yun also states that new affordable construction will be key in 2017.  “Some would-be sellers may be reluctant to move up or trade down – especially if they’ve refinanced in recent years.  That’s why it’s extremely necessary for homebuilders to step-up their production of homes catered to buyers in the affordable price range. Otherwise the nation’s low homeownership rate will struggle to shift higher in 2017.”

The report is in direct contravention to a Redfin report which projected that 2017 will be break 2016's record for sales.  Redfin also predicts that existing homes sales are will increase 2.8% in 2017 and inventory will recover to 1.7% year over year, after falling an estimated 3.4% in 2016.

With home sales to increase in 2017 we expect property management services in New York City to expand as well.  Blue Harbour Property Management manages properties in Bronx, Brooklyn, Queens and Manhattan and surrounding regions.  We tailor our services to maximize revenue potential for homeowners.  If you are in need of property management you can contact us at 718-845-1185 for a free consultation.

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Brooklyn Remains Top Sellers' Market in NYC According to New Study

Investors in the market are always looking for the most advantageous deals.  Sellers are  looking for the optimal time to cash out on their property. A new study by StreetEasy indicates that the deals are spread out more throughout the City while the sellers'  have more power in Brooklyn.  The Buyer/Seller survey looked into several factors in determining what is the best to both categories.  The factors included on what they call the Buyer/Seller index included factors as:

• Time on market
• Price cuts
• Sold price in relation to asking price

Based on the criteria it was found that Brooklyn maintained its lead for sellers looking to cash out.  The best neighborhoods for sellers along with the median sales prices according to the index were:

Kensington- Brooklyn $515,000

Prospect Heights- Brooklyn $735,000

Fort Greene-Brooklyn $ 682,720

Cobble Hill-Brooklyn $1,330,000

Lower East Side in Manhattan  $775,000

The neighborhoods that are tougher to sell are spread throughout the boroughs. These are areas that units are harder to sell and prices are reduced in order to close transactions:

Kew Gardens Hills - $248,000

Canarsie - $380,000

Sheepshead Bay - $390,250

Midtown - $1.45 million

SoHo - $3.29 million

This information should assist he investor make informative decisions in determining where to purchase their next property.  There is much more wiggle room when it comes to negotiating prices in the Buyer’s index.  The index can assist you prepare your finances accordingly in order to get into these markets.  Determining what the market and future rents can be are will also help in determining whether this will potentially be an overall profitable investment for your real estate portfolio.

If you are in need of management of your property or properties in NYC then Blue Harbour Property Management is the company for you.  We can help you determine what is the value of your investment and cater to it so you can maximize the revenue potential.

http://www.blueharbourpropertymanagement.com/brooklyn-remains-top-sellers-market-according-new-study/

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Eliminating Potential Losses by Using a Professional NYC Property Management Company

There are plenty of risks associated with owning property in New York City.  You can make bad decisions in the contractor you pick in doing renovations.  That can cost you not just the labor and material costs but also the pain and suffering of shoddy workmanship that can make your unit sit there without tenants for many months.  Also, the risk of finding tenants is a serious concern for many landlords.  Sometime you can find someone who may look on its face like a decent prospect but without doing the slightest level of research into the person's financial background can cost you months of lost revenue if they tenants does not pay at all or never pays on time.  One of the most important features of using a property management company is having a third party find the best tenants and preserving your property.  That is why you need to use an inexperienced, professional property management company in New York City.

The staff here at Blue Harbour Property Management has a wealth of experience in all aspects of managing real estate.  Our diverse knowledge in landlord and tenants relations, renovations and the communities that we service gives us an advantage over other property management companies in our area.  With respect to prospective tenants, we can not only help you determine the right monthly rental rates for your property thus maximizing your return on investment, we’ll also ensure that the tenants are a good fit for your property. We diligent perform thorough background screenings.  They include credit, employment and rental.  We also review the Housing Court records to see if there are any outstanding cases that the prospective tenants are involved in. With the right tenants you should be more confident about your property and if there is a need for an eviction for non-payment we have all the necessary systems in place to being the process and proceed efficiently.  The protocols that we put in place at Blue Harbour Property Management as set forth to mitigate any potential losses for the landlord.

Decide to choose a company that is thinking ahead of preserving your income with Blue Harbour Property Management.  You can learn about our quality of service and breadth of knowledge in NYC property management by connecting with us at 718-843-1185 or e-mailing us at info@blueharbourpropertymanagement.com.

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Sales Prices Increase in Upper East Side of Manhattan as Second Avenue Subway Line Opening Looms

The first three stations on the Second Avenue subway line should be opened by December 31, 2016.  The lines opening in the Upper East Side of Manhattan will be at East 72nd Street, East 86th Street and East 96th Street.  The long awaited subway lines which have been in discussion for over a century but finally began construction in 2007 will be a huge financial windfall for both property owners and businesses running along that line.  The project which is in the first phase has already cost $4.45 and is considered the first major expansion of the subway lines in more than a half century.

Recent reports have indicated that sales prices along the route has increased roughly 27% per year for the last 5 years.  The report also indicates that rental prices will soar a few hundred dollars per unit along the lines.  Many international clients seek to live in the area due to a reduced level of street activity and the quaintness of community.  It is uncertain to know what the renewed interest in the neighborhood will do the aesthetic.  Many believe that more restaurants will open and younger people will move into the area due to the ease of transportation.  Also developers will be looking into constructing new buildings in the area as well.  A recent report indicates that Mink Development is building a luxury condo building on East 96th Street and Second Avenue as one example.  The firm purchased the site, previously a parking garage, in 2014, for $24 million. They are knocking down the parking garage to construct a 75,000 s/f property that will have 48 units.

There clearly will will be new opportunities for NYC property management on the Upper East Side of Manhattan.  With the influx of new tenants as well as new developments there is a need for experienced property managers to serve the community and maintain its vitality.  Blue Harbour Property Management is a prominent NYC building management company that can fulfill the needs of both landlords and tenants.  If you are in need of property management feel free to contact us at 718-843-1185 or info@blueharbourpropertymanagement.com

http://www.blueharbourpropertymanagement.com/sales-prices-increase-along-second-avenue-subway-line-opened-end-year/

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Consumer Bill of Rights revealed in New York for Homeowners in Foreclosure

The State of New York has unveiled a consumer bill of rights for homeowner that are in any stage of the foreclosure process.  The statement which can be read in full here, informs the homeowners as a consumer that they have rights during the process and advises them that they have a right to seek legal counsel if they are facing a foreclosure in New York.  The bill of rights also tells borrowers that they have the right to stay in their home during the foreclosure process.  Many people have been under the impression that they must leave their houses once they are not able to pay their mortgage.  The language of the bill states..“If you abandon your home, the plaintiff (bank or mortgage servicer) may be able to foreclose on your property through an expedited process in court.  To prevent this outcome, stay in your home and carefully review and respond to documents you receive from the plaintiff or the court in your foreclosure case. A failure to respond or appear in court when required to do so could make it easier for the plaintiff to show that your property is vacant and abandoned, which could put you at risk of an expedited foreclosure.”  The Bill of Rights thereafter goes through the steps and legal process that must take place before the home is foreclosed upon.

The consumer bill of rights is part of legislation originally introduced by New York Attorney General Eric Schneiderman in 2014 and 2015.  The purpose of the laws were to reduce the number of zombie homes by informing homeowners of their right to stay in their home until a court orders them to leave.   Furthermore, the legislation is intended to combat the blight of vacant and abandoned properties by expediting the rehabilitation, repair and improvement of these properties.

Additionally, the new laws will also impose a duty on banks and servicers to maintain zombie homes in the pre-foreclosure timeframe and they would be required to create an electronic registry of abandoned properties  The banks and servicers would also have to expedite foreclosure for vacant and abandoned properties to get them back on the market.  The legislature would require the foreclosing party takes action to ensure new parties enter the property within 180 days.

The foreclosure time from the first missed payment to the exiting of the property in New York State is 1,070 days.  New York has the second highest amount of abandoned foreclosures with 3,352 according to RealtyTrac.  The new legislation hopes to address these issues head on.

Blue Harbour Property Management has managed many New York City properties where the homeowners has purchased directly from the bank.  If you are looking for property management in NYC of your previous bank owned property contact Blue Harbour Property Management.  We can give you a comprehensive service package that will assist you to maximize your rental revenues.

http://www.blueharbourpropertymanagement.com/consumer-bill-rights-revealed-new-york-homeowners-foreclosure/

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Bronx Remains Hot and a Great Opportunity for Real Estate Investors

The Bronx, once considered a symbol of urban blight and an example of fiscal irresponsibility has now become a hot real estate market with tremendous opportunities for the future.  With prices remaining high in Brooklyn and Manhattan many investors are deciding on planting their feet in the Bronx because of lower prices and the flux of businesses that have been moving to areas such as Mott Haven, Melrose and Port Morris.   

Many developers are buying up vacant land and/or renovating existing properties.

Bronx-wide real estate sales has increased tremendously within the last few years.  For instance, in 2014 borough-wise investments for the year were $1.1 billion.  That amount skyrocketed held by two development projects to $2.4 billion in 2015.  The two projects were one by The Chetrit Group and Somerset Partners to build two 25 story towers at 2401 Third Avenue and 101 Lincoln Avenue and The Hudson Companies La Central where they are planning to build 992 affordable units in Melrose.

Major real estate investors are also entering the market at Related Companies purchasing 737 units throughout that borough as well as Harbour Group International along with York Equities purchasing 38 buildings encompassing 1000 units.  Overall multi-family sales increased 67% in the borough.

With all this flurry of activity it is no surprise that residential real estate has been on an uptick.  According to REBNY Third quarter report,  overall sales in the Bronx has increased 13% year over year with home prices increasing to an affordable (in comparison to Brooklyn, Manhattan, Queens) $400,000. City Island, Pelham Bay, Pelham Strip, Country Club, Throgs Neck, Schuylerville remains hot with average sales price of a home up to $525,000 an increase of 14%.  All of these indicators show that the borough will be ripe for investment for the future.

If you are in need of a professional property management company servicing the Bronx, contact Blue Harbour Property Management.  We will consult with you and come up with a strategy of maximizing your real estate investment.

http://www.blueharbourpropertymanagement.com/bronx-remains-hot-great-opportunity-real-estate-investors/

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The Department of Housing and Urban Development (HUD) has announced a rule prohibiting smoking in public housing residences to be put in place in 18 months.  The rule covering public housing forbids cigarettes, cigars, pipes and hookahs (or water pipes) — but not electronic cigarettes — from being smoked in all living units, indoor common areas, administrative offices and all outdoor areas within 25 feet of housing and office buildings.  The ruling is expanding the current ban on smoking which covers roughly 228,000 units on the state level.  The ruling will extend beyond the state level and be enforceable under the federal guise.

Presently housing agencies have enforced the rulings by placing warning and fining to residents.  They have also have had counseling and given smoking patches  as a deterrent.  Julian Castro, the HUD secretary doesn't see the rulings as a means for evictions.  He says "We don’t see this as a policy that is meant to end in a whole lot of evictions. We’re confident that public-housing authority staff can work with residents so that that can be avoided".

The impact of the ruling will greatly affect New York in particular.  The New York City Housing Authority presently has 178,000 apartments under management and more than 400,000 residents occupying public housing.  Nationwide 1.2 million people live in public housing encompassing 940,000 housing units.  The ruling in particular addresses second hand smoke affecting children nationwide.  Presently 760,000 children living in public housing.

The ruling as stated will go into effect in 18 months but still be overturned by President-elect Donald Trump’s administration.  Ben Carson has been picked as the new Secretary of Housing and Urban Development.  Carson is a world renowned neurosurgeon and will now steer the agency with an annual budget of $50 billion and manages a $1.6 trillion mortgage portfolio.

http://www.blueharbourpropertymanagement.com/u-s-ban-smoking-public-housing-will-affect-new-york-city/

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Airbnb has decided to drop their lawsuit against the City of New York, the largest market for its operations with revenues exceeding 1 billion dollars in the city for its hosts.  Airbnb has had a huge impact on business specifically in Manhattan and Brooklyn.  The lawsuit was based on a law signed in October that called for fines of as much as $7,500 for illegally listing a property on rental platforms such as Airbnb.  The law would have imposed fines that would have hampered Airbnb's operations throughout the country and required additional supervision of listings being put on their website.  The lawsuit was dismissed on the agreement that New York City enforce the law only against hosts and Airbnb not be fined.  The settlement of the lawsuit goes into effect today December 5, 2016.   For more about the settlement you can read here.

NYC property management companies have vehemently objected to Airbnb taken hold in New York City. Specifically some landlords have been fined and violations imposed as a result of tenants illegally renting out their apartments to Airbnb'ers.  A recent case brought by Related exemplifies this.  In the particular instance, Related attempted to evict a rent-stabilized tenant who they discovered was renting the unit out on Airbnb for $649.00 per night.  The tenant was paying $6,670 for the unit on the market rent of $9,000.  Related sought and received an eviction.  The state appeals court held that tenants have no right to benefit from apartments that have rent restrictions.

Although there are no guarantees that this would stop illegal units cropping up throughout the city, it is certainly a positive step into deterring possible violators.  It will be interesting how the City will go about enforcing the law going forward but Assemblywoman Linda Rosenthal is optimistic that there will be a crackdown.   She states “I expect the city will now get down to the important business of enforcing the law against the serial lawbreakers on the site” who turn affordable housing intol illegal hotes. This is a win for everyone."

http://www.blueharbourpropertymanagement.com/airbnb-drops-suit-city-hosts-will-fined-instead/

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NYC cracking down on Landlords failing to fix Violations by Withholding Rent

The City of New York has finally had enough of landlords not fixing violations attributable to their buildings.  They have decided to take a legal measure not used since the Koch administration and withhold rents it pays for public assistance at the buildings in question.  The two landlords had a combined 239 violations of which 78 of those violations deemed "hazardous".

The landlords were among eight warned by City Hall and Public Advocate Letitia James in May to clean up their buildings or have their rent withheld.  The buildings are located in the Bronx and upper Manhattan.  The rest of the landlords decided to make the necessary repairs and were not penalized.  For more information on this click here.

The failure to cure violations on your property can become a major obstacle in profiting on your investment.  Although the above result appears to be an extreme case, you can see what the failure to upkeep your property can lead to.  In most cases, the choice of a reputable NYC property management company can assist you in fixing violations on your property.  The majority of property managers have software that can detect when violations have been assessed and can take actions to cure them.  In the alternative, choosing a property mangement company in New York City that has the expertise in preventing the violations can save you money and hassle in the long run.

Troubleshooting potential issues and having a long term strategy in place for preventative measures are some of the services that Blue Harbour Property Management provides.  If you are in need of a property management company that can assist with your troubled property, call us and we will meet with you and determine what is the best plan for the health of your property.

http://www.blueharbourpropertymanagement.com/nyc-cracking-landlords-failing-fix-violations-withholding-rent/

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Prices Rise and Sales are a Mixed Bag in Brooklyn According to Third Quarter Report

A new report suggests that the Brooklyn Real Estate sales market has now come down to the 5 year average this quarter.  The main reason for the conditions has been rising prices of all properties throughout Brooklyn.  According to the Corcoran Report for the 3rd quarter of 2016 "buyers have greater options with more listings on the market, however the additional inventory has been largely at the high end. Transactions are also taking longer to complete, verified by a higher days on market figure."

Overall real estate closings on properties were down 19% from 3rd quarter of last year and the average days of the market has increased from 58 days to 67 days totaling a 16% increase.  The average price has increased 27% from $728,000 to $926.000.  This increase may be one of the indicators on why properties have stayed on the market longer than the same quarter in 2015.  With respect to supply  Corcoran states

"After nearly three years of declining inventory since the peak in Second Quarter 2011, available inventory has increased year over-year for eight of the nine past quarters. There were 2,236 listings available during Third Quarter 2016, 7% more than last year. The year-over-year increase was driven by resale condo and new development listings, as resale co-op inventory was 3% lower. This is the fifth consecutive quarter of annual co-op inventory decline. New development inventory rose by a significant 40% compared to last year. 2016 new development introductions have already surpassed 2015 just three quarters into the year. This influx of new development units helped total condo inventory to claim a 58% market share, the highest seen since First Quarter 2011".

Brooklyn Heights, Dumbo, Cobble Hill and Downtown remain a hot spot for activity as sales increased 17% while prices increased 11% to an average of $1,100,000.  Park Slope and Gowanus has seen an increase in inventory of 64% from the same period last year while median prices have increased year over year as well.

Most believe that the pace of submitting offers will pick up after the election season.  Many believe that offers were not being submitted in the quarter because the Presidential candidates have differing opinions of core tax principles which would affect homeowners.  Expect prices and sales increase in 2017.  Property management activity in Brooklyn should remain strong heading into 2017.

http://www.blueharbourpropertymanagement.com/brooklyn-remains-hot-spot-property-sales-according-third-quarter-report/

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New Conforming Loan Limits will Assist Investors Purchase Pricier Homes

The Federal Housing Finance Agency has announced that for 2017 it will raise the maximum size of the super conforming loan limit to $636,150.  This amount is adjusted from the super conforming limit which affects 238 counties nationwide of $625,500.  The super conforming limit affects the 5 boroughs of New York City as well as many other metropolitan areas with high real estate valued markets.  In the rest of the country the conforming limit will be increased from $417,000 to $424,100.

Conforming loans are what is considered best loans for borrowers. The reason why it is considered this is because the loans generally have the lowest possible interest rates and the requirements for qualifying for such loans are smaller than other loans.  Loans above the conforming limits generally have more requirements and conditions for a borrower to qualify for these "jumbo" loans.  Conforming loans are also easier to sell to Fannie Mae and 

Freddie Mac which gives the banks the ability to lend more easily.

The change to the conforming limit could expand access to additional buyers.  It is estimated that this increase could result in 40,000 additional sales nationwide.  This is the first time that the Federal Housing Finance Agency has increased the conforming loan limit since 2006.  For more information please see National Association of Realtor's article here.

We here at Blue Harbour Property Management have been predicting that loan limits would increase for some time.  With this news, we also believe that investors will have the ability to borrow and purchase properties that might have been out of their reach in the past.  It can only affect property management companies in New York City in a positive light.

http://www.blueharbourpropertymanagement.com/new-conforming-loan-limits-will-assist-investors-purchase-pricier-homes/

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421-a Tax Abatements are Being Revoked on Landlords in Non-Compliance

The crackdown on Landlords who are not registering their buildings with the city's rent regulation has swiftly come down on owners of buildings in New York City.  A new report by Crain's New York Business indicates that the city along with the Attorney General's office, Governor Cuomo and Mayor DeBlasio's office warned owners of 178 buildings that they must register the 1,400 affected apartments with the city's housing agency which will enforce rent limits each year.  The failure to register their buildings will result in the 421-a tax designation that the owners have on their buildings to be removed and the owners being responsible for the reinstated taxes for the period that they received the abatement by the city.

421-a  is a program gives developers a 10 year tax exemption for building a multi-unit residential project on vacant land.  The developer of a project on vacant or mostly vacant land is exempt from paying the taxes it would usually have to pay for a 3 year period of construction. Thereafter the developer is given a  10-year-long exemption period, during which the exemption becomes more of an abatement. Every two years during that period, the tax break is reduced by 20%, until fully used.

It is further reported that since 2014, the Attorney General's office under the Real Estate Tax Compliance Program  have caught more than 460 landlords in noncompliance, revoking the tax break at 35 buildings and sending notices of revocation to 178 more.  For more information on the report click here.

As a New York City property management company it is imperative to be in compliance and up to date with the city's reporting and enrolling of apartment units.  The failure to do so, as you can see for some landlords can result in potentially millions of dollars in losses that could have been prevented by having safeguards set up with respect to reporting.  At Blue Harbour Property Management we set deadlines on reporting and enrolling apartments with the City.  That way, we never have to worry about exorbitant that could be detrimental to the entire development and overall health of the building.  This is part of building management expertise that a landlord should look for in deciding on a apartment management company in New York City.

http://www.blueharbourpropertymanagement.com/421-tax-abatements-revoked-landlords-non-compliance/

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Reasons why NYC Property Managers should require Renters' Insurance

One of the main issues that landlords deal with is damage arising to tenants' possession due to an unforeseen problem with the property. What NYC property managers should do is put a provision in the lease agreement that advises the tenant to carry renter's insurance to protect tenants from any such loss or damage. But this suggestion does not often get follow-up on and may not help fully protect the landlord or tenant.

A reputable and experienced property management company will often present an additional term that requires the tenant to obtain renters insurance and that the landlords be named as an "additionally insured" on the policy. It is also beneficial to have the tenant show proof of such insurance coverage within days of the date of signature of the Rental Agreement. Protecting the tenant and landlord with insurance is a smart expenditure for piece of mind.

Best of all, renters insurance is very affordable, typically about $15-$20 a month, and is available from all major insurance companies.

However, some municipalities do prohibit owners from mandating renters insurance policies for tenants in rent-controlled buildings. In that case, requiring renters insurance might be more trouble than it’s worth. However, you certainly could still recommend it and make the tenant sign a liability waiver if they choose not to obtain it.

For renters insurance to cover your tenant’s stolen property, you apartment building management company, property management company or landlord must provide at least the minimum security measures for your locale – such as locking doors and windows. If you don’t, you might be responsible for your tenant’s stolen property.

So what is protected in renters insurance?

Personal Property Coverage

Think of everything you own. The value of your belongings can quickly add up. Personal property coverage, a typical component of renters insurance, may help cover the cost of replacing your stuff if it's unexpectedly damaged or ruined. That protection generally applies to certain risks (also referred to as "perils"), such as fire and theft, the Insurance Information Institute (III) explains. So, if your computer and television are stolen, or your furniture and clothing are destroyed by a fire, this coverage may help you pay for the cost of replacing them. It's important to know that coverage limits — the maximum amount your policy will pay for personal property losses — will apply. Read your policy carefully or contact your agent for information on what may or may not be covered.

When purchasing a renters insurance policy, you may face a few different choices. For instance:

You'll want to set coverage limits that are appropriate for your situation. Creating a home inventory may help you assess the value of your belongings and help you decide how much personal property coverage is right for you.
You may also have to decide what kind of personal property coverage to purchase, the III says. A policy that provides actual cash value protection typically covers belongings up to their current market value (taking depreciation into account). Meanwhile, a policy that includes replacement cost coverage may help you pay to replace your items at today's retail prices after a covered loss.

Liability Coverage

Liability coverage is another protection typically offered in a renters insurance policy. This coverage may help protect you from paying out of pocket for certain costs if you are found legally responsible for injuries to other people or damage to their property.

http://www.blueharbourpropertymanagement.com/reasons-why-nyc-property-managers-should-require-renters-insurance/

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Millennials Have Increased Their Percentage of the Homeownership Market

First time home buyers are entering into the market in droves and the percentage has increased for 2016.  There are more than 75 millennials and they have become the most populous group in the United States.  Many young households delayed buying homes after the 2007-09 recession, which sent unemployment up to 10% nationwide.  Then the accompanying housing crash dragged down home values, making houses seem like a risky investment.  Now it appears that they are ready to enter the market as the economy has rebounded and job opportunites has increased.

According to a recent article at NorthJersey.com “Other people held off buying homes as they completed their educations and struggled to save for down payments in the face of student debt and high rents. Those delays may be one reason the median age of first-time buyers surveyed this year by the NAR rose to 32, up from 31 in the past five years.  The market has rebounded with first time homebuyers as well.  The amount of purchasers that are first time has increased 3% from 32% in 2015 to 35% in 2016.  Millennials are increasing looking for homes in the suburbs as they begin to have families and careers become more stable.  For more information click here.

As indicated first time homebuyers are part of an entire eco-system.  First-timers purchase and allow sellers to purchase newer or pricier homes.  The purchase also affects the home improvement and improvement supplies industries.  This also will affect the property management industry as sellers may invest in real estate to offset the gains they will receive on the sale of their properties.  Although this is a nationwide survey, it will definitely affect the New York City metropolitan region in a positive light.

http://www.blueharbourpropertymanagement.com/millennials-increasing-homeownership-market/

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Should I Sell or Hire a NYC Property Management Company?

Many people have jobs and are asked to move to another location in their company.  It is at this point, the owner has to come to a decision.  Should I sell my house or should I rent it out?  How am I going to handle emergency repairs when the tenants call?  What happens if I rent and the tenants stop paying the rent?  Will this take up too much of my time?  These are normal questions that every homeowner should have.  It is a tough decision as it was probably a huge accomplishment to purchase your property and have spent a significant investment in it after purchasing.  In light of this, here are some factors that the homeowner should consider in determining whether they should sell their New York City property or keep it:
Plans on returning to NYC- If your move out of state or the country is temporary then it is probably a good idea to keep your property.  A short term rental can be procured and you would be in the position of moving back into your place.  You should look at the cost of selling your property and the time to find something of the same quality and nature of what you gave up.  One would imagine that it took you time to find a property that you were interested in.  It would be the same way this time around.  Also the cost of finding replacement housing as you find a new permanent property will be costly both in terms of the rental expense but also the inability to build equity in the property you are renting.
The current real estate market- While the real estate market has bounced back in the several years, it still hasn't reached peak conditions.  Also, if you have not built any equity in your house the chances are you will lose money in the transaction.  While some boroughs has seen an appreciation in the value of their homes, it is not universal.  Waiting a few more years to sell would be a prudent choice.
Investment return potential of your NYC rental- New York City rental properties have huge potential when it comes to give you investment returns.  Rental prices have skyrocketed in areas located in Brooklyn and Queens.  In comparison to selling you will be able to see returns in your investment almost immediately if you rent it.  You will also get the benefit of appreciation by holding the property for a few more years.  If you decide to sell there are drawbacks such as the tax ramifications of selling and having to pay transfer taxes immediately at the sale.
Hiring a professional to handle your property while away-Most owners are concerned about what will happen to their property if they are away.  Hiring a professional NYC property management company can alleviate your concerns that your property will fall into disrepair.  A full service property management company will be able to handle emergency requests from tenants, maintain correspondence with you and the tenants, collect rent and handle all other day to day operations for your property.   

If you are unsure of whether you want to sell or rent your property Blue Harbour Property Management will be happy to speak to you about it.  Because we are leaders in the industry, we will be able to share with you where the market is presently and we can determine what is the best avenue for you to take.  Keeping your New York City property or selling is a serious choice and needs to be reviewed on a case-by-case basis.

http://www.blueharbourpropertymanagement.com/sell-hire-nyc-property-management-company/

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