Simple Springtime Maintenance Actions For NYC Property Management Companies And Landlords That Will Save You In The Long Run

Spring is finally here in New York City.  With the onset of Spring, also comes temperatures beginning to rise gradually.  We are also nearing the prime rental season. With the ability to finally be able to stay comfortably outside there is no better opportune time for NYC property management companies to start looking into refurbishing and improving their properties.  This is the best time to put your best foot forward and make sure that your apartments are in the most marketable of conditions.

We have found that there are simple inexpensive actions that you can take as a New York City owner or property manager to put your properties ahead of the curve.

Window Cleaning:
Non-streaked, shiny windows that brings in the beautiful spring sunshine is a sure shine of Spring.  Clearing out the muck from the winter extremities because of the inability for sufficient maintenance during the winter season would be a joy not only to your existing tenants but also prospective ones.   Remember it is always important to have a great first impression for visitors and potential renters alike.

Cleaning the outside of your premises thoroughly
The winter can take a toll on the outside of your building.  Your parking lots may have been filled with snow and mixed within the snow is dirt and garbage.  Once this snow melts out we now can see all of the remaining garbage and it becomes not only an unpleasant sight for most but it can lead to the tracking of this dirt and soot into your building.  The same thing occurs to the exterior walls of your building.  The winter creates weather staining and deposits all around.  We believe that a though professional cleaning is needed.  You should contact a professional that can pressure wash your entire exterior of your premises.  There are many businesses out there and we normally work with companies that are accredited and have certifications from the Power Washers of North America.

HVAC systems

The Spring is the perfect time to inspect and repair HVAC systems.  The reason being is because it not not the season for wearing out your system.  Your HVAC system is at its’ peak use during the summer and winter seasons.  This will allow for thorough inspections and repairs if necessary.  By doing it during the off-season, you will be saving money because the premiums normally spent for emergencies are not there.

Lawn Maintenance & Beautification

The most enjoyable part of springtime maintenance is cleaning and landscaping the exterior of the property.  If there is a limited budget you may just need to clean out weeds, cut a few branches, planting flowers and pruning trees and bushes may be just what you need.  But if you are looking to have a wow factor with lasting impressions it is always advisable to hire a professional landscaper to make a lasting impression to your present and future tenants.  Professional landscaping companies can discuss what our site’s needs are and thereafter suggest improvements to not only beautify the premises but to make it more efficient.  Hiring a professional who can show you past performance is highly recommended.   It is important to know that many prospective tenants cite the landscaping as reasons of taking a tour of an apartment.

By following these actions, you will not only be improving the ambiance of your building but also will increase satisfaction rates and pride of your tenants.  This will not only lead to retaining your existing renters but word of mouth will make your building more attractive to the next generation of residents.

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/simple-springtime-maintenance-actions-for-nyc-property-management-companies-and-landlords-that-will-save-you-in-the-long-run/

NYC Has 7 Of The Top 20 Gentrified Zip Codes In The Nationwide Leading To Increased Home Value

A new study by Rentcafe found that NYC has 7 of the top 20 gentrified zip codes in the nation.  The study looked at the 2000 Census data as well as the 2016 American Community Survey to see changes taken place in over 11,000 zip codes throughout the nation.  According to Rentcafe they study looked to three important factors to determine where gentrification was taken place.  The factors was median home value, median household income and the population holding a bachelor's or higher degree.  From there, their analysis gave an average rank based on zip code.  In the NYC area, Brooklyn led the way with 5 of the top 20 zip codes leading in gentrification.  This was followed by Manhattan with two zip codes.

Along with gentrification comes increases in home values.  According to the study the average home value in 2016 in the top 20 most gentrified zip codes was $446,730 with an average increase of  224% since 2000.  All areas in the Brooklyn zip codes (11211- Williamsburg, 11222- Bushwick, 11216- Bed-Stuy, 11237- Bushwick and 11221-Bed-Stuy/Bushwick ) saw increase in home values above 100% since 2000.  The Manhattan zip codes (10039-Washington Heights and 10026-Harlem) both saw increases well above 200% during the period.  The most interesting zip code in Manhattan according to the survey was Roosevelt Island's 10044 which saw an astronomical increase.
According to the article

"New York City dominates the top of the list, with some dizzying figures. That the median home value in New York’s 10044 (Roosevelt Island) exploded, going from just over $48K to almost $655K is just one way to put it. Proportionally, it is an astonishing 1,258% expansion rate."

The study points out that there are drawbacks to the gentrification of neighborhoods.  As we have seen in many areas in New York City, the influx of new highly educated individuals leads to displacement of long time residents of the community.

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/nyc-has-7-of-the-top-20-gentrified-zip-codes-in-the-nationwide-leading-to-increased-home-value/

Existing Home Sales For February 2018 Increases Despite A Significant Drop in the Northeast

Existing home sales grew three percent (3%) in February changing course from the previous two months which were hampered by low inventory levels and overall increases in sales prices.  The report produced by the National Association of Realtors (NAR) saw the Northeast region (-12.3%) having a huge decrease in existing home sales and that was followed by the Midwest (-2.4%).  Strong sales in the South (+6.6%) and West (11.4%) led to the growth for February altogether.   Cold and severe weather as we have seen in New York City this winter has affected existing home sales for the period for the Northeast region.

Total existing-home sales which are completed transactions that include single-family homes, townhomes, condominiums and co-ops increased to a seasonally adjusted annual rate of 5.54 million in February which is an increase from 5.38 million in January. With the numbers for this month, overall sales are ahead of last year's pace by 1.1%.  Median existing-home price increased 5.9% from the same period last year to $241,700.  It is the 72^nd straight month of year-over-year gains.  Surprisingly, total inventory rose 4.6% for February to 1.59 million existing homes.  The amount is a positive sign however is still 8.1% below the amount for the same time in February 2017 and is the 33rd consecutive month we have seen year over year inventory being lower.  Unsold inventory is at 3.4 month supply which is significantly low.  A healthy supply would be 6 months.

Chief economist for the NAR Lawrence Yun said the following:

“A big jump in existing sales in the South and West last month helped the housing market recover from a two-month sales slump.  The very healthy U.S. economy and labor market are creating a sizeable interest in buying a home in early 2018. However, even as seasonal inventory gains helped boost sales last month, home prices – especially in the West – shot up considerably. Affordability continues to be a pressing issue because new and existing housing supply is still severely subpar.  The unseasonably cold weather to start the year muted pending sales in the Northeast and Midwest in January and ultimately led to their sales retreat last month. Looking ahead, several markets in the Northeast will likely see even more temporary disruptions from the large winter storms that have occurred in March.”

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/existing-home-sales-for-february-2018-increases-despite-a-significant-drop-in-the-northeast/

Home Builder Confidence Remains Strong But Drops Slightly From Previous Months

The National Association of Home Builders (NAHB) and Wells Fargo released their March report on home builder confidence and it shows that home builder sentiment remains strong although has slipped from the record highs of previous months.   The Housing Market Index (HMI) indicates that there has been a decrease of one point to 70 in March.  This is a slight reduction from the readings of February which was revised to 71.  December saw the highest post-recession readings of a 74.

Based on a monthly survey NAHB conducts, the HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair,” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average,” or “low to very low.” Any number over 50 indicates that more surveyed builders viewed conditions as good than poor.

With respect to current sales, the HMI survey showed that confidence held steady at a 77.  Sales for the next six months expectations dropped 2 points to a 78.  In the Northeast, builder confidence increased 1 point to a 56.  Previous months saw builder confidence drop 5 points in February so positive sentiment is seeing an upswing in our area.

NAHB Chairman Randy Noel  said “Builders’ optimism continues to be fueled by growing consumer demand for housing and confidence in the market. However, builders are reporting challenges in finding buildable lots, which could limit their ability to meet this demand.

Challenges aside, there is optimism of continued growth in home building for the future.  Robert Dietz, Chief Economist for the NAHB believes so in stating "A strong labor market, rising incomes and a growing economy are boosting demand for homeownership even as interest rates rise. With these economic fundamentals in place, the single-family sector should continue to make gains at a gradual pace in the months ahead.”

 Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/home-builder-confidence-remains-strong-but-drops-slightly-from-previous-months/

Housing in NYC Is Becoming More Affordable Amid Increased Wages and New Apartments

The Wall Street Journal is reporting that housing costs are taking less of a percentage of a household's monthly budget as the strong economy and the availability of newly constructed apartments make it more affordable for the majority of New Yorkers.  The information was compiled via survey by the U.S. Census Bureau that is conducted every three years.  The survey indicates that the surge of construction in the past few years and a strong economy in which the growth of jobs has outpaced the increase in rents are making things even manageable for lower income groups.

The survey also found a record 3.47 million housing units in New York City.  This is  an increase of 117,000 since 2011.  It is also estimated that an additional 35,000 rental apartments and 15,000 condominiums are due to open in 2018 and 2019.  Mark Willis, a fellow at NYU Furman Center states “Rising vacancy rates citywide are a sign that, overall, the housing supply is starting to catch up with demand, helping to relieve the upward pressure on housing costs."  Vacancy rates throughout the city has hit 3.63% which is the 3rd highest vacancy rate since 1965.  Vacancy rates in Manhattan was 4.73% which was the highest recorded in the last decade.

With respect to household income, NYC renters saw an increase of eleven percent (11%) over the last survey while rents rose  8.2%. For tenants in rent-stabilized apartments, incomes increased 7% while rents rose by 2.6%.  Despite all these positive signals, the city’s housing commissioner Maria Torres-Springer said that they city is still facing an affordability crisis and they will continue to strengthen rent laws as well as building and maintain existing affordable housing.

Landlord groups are hoping to remove Manhattan apartments renting for $2,000 or more from rent control.  Present law requires that rent control should be abandoned should the vacancy rates hit 5 percent.  Jack Freund, executive vice president of the Rent Control Stabilization indicated that the 5% standard is within the survey margin of error of the 4.73% vacancy rate Manhattan. Experts do not believe that the City Council will change any regulations with respect to rent control.

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/housing-in-nyc-is-becoming-more-affordable-amid-increased-wages-and-new-apartments/

NAR Study Show Millennials Lead All Generational Purchasers Relying On Real Estate Agents For Assistance

The National Association of Realtors (NAR) recently released the outcome of a study done named Home Buyer and Seller Generational Trends.   The report indicates that millennial home purchases increased over the year and constraints hampered many from leaving their parents homes.  Thirty six percent (36%) of all home purchasers were made by millennials leading all generational sects.  This was the fifth year in a row that the generation segment has led the survey.  Although most segments relied heavily on real estate agents for assistance in the purchase or sale of homes, ninety percent (90%) of all millennials were the most likely to purchase a home through a real estate agent.

The survey which evaluates the generational differences of recent home buyers and sellers found that millennial buyers prioritize living close to friends and family over a home’s location and proximity to schools.  Thirty six percent (36%) of all sales were made by millennials over the past year.  This was an increase of two percent (2%) over the previous year.  Gen X buyers ranked second 26 percent, a decrease of 2 percent (2%) and followed by younger baby boomers eighteen percent (18%) and older baby boomers at fourteen percent (14%).

NAR chief economist Lawrence Yun states market conditions are hampering millennials from further gains in homebuying.  Particularly steep competition from low inventory and increased purchase prices are affecting advancement.

"Realtors throughout the country have noticed both the notable upturn in buyer interest from young adults over the past year, as well as mounting frustration once they begin actively searching for a home to buy.  Prices keep rising for the limited number of listings on the market they can afford, which is creating stark competition, speedy price growth and the need to save more in order to buy.  These challenging market conditions have caused – and will continue to cause – many aspiring millennial buyers to continue renting unless more Gen Xers decide to sell, and entry-level home construction picks up significantly.”

Another interesting conclusion from the survey is that younger boomers were the most likely to purchase a multi-generational homes reciting that the main reason being they would like to purchase for their adult children to live at home.  They also took into consideration of their parents living with them.  The same went for Gen X purchasers as  what was found was a huge jump (over 10% increase in both categories) in the reason for the purchase was for their adult children (35%) and parents living with them (30%).

All generation segment continue to use real estate professionals in drove in order to secure a transaction.  As noted earlier,  90 percent, millennials were the most likely to purchase a home through a real estate agent. Overall, at least 84 percent in every other generation worked with an agent to close real estate transactions.

"On the seller side, Gen X and older boomers were the most likely to use an agent (91 percent), followed closely by millennials (90 percent) and younger boomers (88 percent). The near universal use of an agent to sell a home helped keep for-sale-by-owner transactions at their lowest share ever for the third straight year (8 percent)."

 Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/nar-study-shows-millennials-leads-all-generational-purchasers-relying-on-real-estate-agents-for-assistance/

NYC Investment Sales Down Almost Forty Percent; Bronx Only Borough With Higher Sales

The Real Estate Board of New York (REBNY) published their Investment Sales Report for the Second Half of 2017 and it shows that real estate investment sales continue to nosedive.  Investment sales have now fallen since the first half of 2015, when New York saw $37 billion in real estate sales. Sales have fallen on every report since 2015 except one period for the second half of 2016.  The report indicates that the total monetary value for all recorded sales was $17 billion throughout the city which is a 37 percent decline compared to the second half of 2016. The total number of transactions also draw a drop of 19 percent year over year.  The only borough that saw a positive investment with respect to monies spent was the Bronx where investors spent $1.5 billion in the second half of 2017 where $1.4 billion was spent in 2016 second half.

Manhattan investment saw a considerable drop as sales decreased 40 percent to $10.1 billion in the second half of 2017 from $17.0 billion in the second half of 2016.  Also of note, transactions decreased 26 percent from 2016.  The report shows also that the average price per square foot of office properties Manhattan declined 12 percent to $823 from $930.

Brooklyn sales for the second half of 2017 dropped 27 percent to $3.2 billion from $4.4 billion in the second half of 2016. The amount of transactions decreased 18 percent to 783 in the second half of 2017 from 954 in the second half of 2016. The value of Brooklyn investment sales transactions accounted for 19 percent of NYC total sales.

Queens investment sales dropped 46 percent from the same period of the second half of 2016.  Total amount spent was $1.9 billion for the period.  There were 18 percent fewer transactions in the second half of 2017, 534 investment sales, compared to 649 in the second half of 2016.

Staten Island saw sales drop 59 percent or $203 million.  The number of transactions completed in the borough declined 30 percent to 190 compared to 273 in the second half of 2016.

Although the report didn't come out totally positive, the outlook still looks upbeat according to the President of REBNY John Banks.

 “The current demand and value of Bronx properties, as seen in our most recent New York City Residential Sales Report, carried over to investment property trades in the second half of 2017.  While the pace of completed transactions lagged citywide in 2017, investors continue to show interest in income-producing properties across the five boroughs.”

 Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/nyc-investment-sales-down-almost-forty-percent-bronx-only-borough-with-higher-sales/

NY Has Most Apartments Under Construction Nationwide; NYC Remains Alluring to Renters As Economy Grows

GlobeSt.com is reporting that New York has more than 60,000 apartment units under construction and that’s the most out of any city that CoStar Group has been tracking nationwide.  CoStar is a provider of information, analytics and marketing services to the commercial real estate industry in the United States founded in 1987.  In an in-depth interview with CoStar Group analyst Lauren Baker many interesting tidbits of the state of New York City apartment renting came into light.  CoStar reports that the since the economy is growing, we should see a healthy rental market for years to come.  Here is some highlights of the interview:

“People want to live where they are working, so office construction drives residential properties, and all of these companies want to be in Manhattan,” says Baker. “Highly educated, younger people, 24 to 35-year-olds with a bachelor’s degree are moving into Manhattan.” In contrast, the outer areas in the state of New York have been decreasing in population.

The financial sector accounts for more that one-quarter of total wages paid and there is expansions by private equity investors, M&A and hedge funds.  The growth in the financial sector has been higher that the national average however they have been seeing some of the bigger banks still laying off employees and reducing bonuses.  However they do believe that with the profits of the six largest US banks substantially growing with deregulation assisting there may be a greater jump in the sector.  

Media and technology will be the stimulus of the city’s future economic growth according to CoStars NYC 2017 multifamily market report as it as been growing for the last 3 decades. Eighty six percent of tech job are in Manhattan but firms are beginning to set up in Brooklyn and Queens as well.  As more people are moving in these industries we are seeing more units being built in places like Long Island City located in Queens and Brooklyn.  More than 8,000 housing units are under construction in Long Island City which is the most in any submarket in the US according to Baker.  She also says “There’s a ton of multifamily units being constructed currently, especially in the outer boroughs.”

The outer boroughs offering lower prices, larger apartment sizes and more amenities.
At the end of the day, NYC will remain an attractive area for renters to be moving to.  Baker states “New York is New York. It’s not going anywhere. People want to live here. It’s proven time over time. It doesn’t matter how many units are built. People want to live here at the end of the day.”

 Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/ny-apartments-construction-nationwide-nyc-remains-alluring-renters-economy-grows/

New Legislation In Reforming Scaffold Law Introduced As Advocates Hit NY Capitol

New legislation was introduced in Albany to reform what many consider the antiquated Scaffold Law in Albany as part of the Scaffold Law Reform Day on February 15, 2018.   The Scaffold Law was originally set forth in 1885 in order to protect construction workers injured in work-related accidents.  The law placed absolute liability on the property owner and construction company.  This means that the worker's negligence was not taken into account when limiting damages and percentage of fault.  It was an assurance of worker's compensation before such laws were in place in New York State.
A union of businesses and trade organizations have gathered to form a group called Scaffold Law Reform.  They gathered in Albany on the 15th for what they deemed Scaffold Law Reform Day.  Their goal was to  "urge legislators and Governor Andrew Cuomo to fix the only-in-New York Scaffold Law, and highlight the law’s impact on taxpayers and local governments".  According to the organization's website they cite the following as what New Yorkers pay for as a result of the Scaffold Law

 "The Scaffold Law costs taxpayers $785 million annually. 
– The Scaffold Law is estimated to add $200 – $400 million in additional costs to the construction of the new Tappan Zee Bridge.
– Local governments pay higher costs for capital projects, whether the work is done directly or through private contractors. For example, liability costs on one joint NY-NJ bridge projects are more than double on the NY side (see graph at right).
– More than half of the top 30 highest settlements resulted from Scaffold Law claims, and of those, 25% were against public entities. 
– The Scaffold Law adds as much as $10,000 to the cost of building a new home. 
– In 2014, the New York School Construction Authority’s (SCA) insurance costs soared to $240M because of the scaffold law, nearly triple that of the previous year, and no guarantee of coverage after 2014.
– The SCA’s increased insurance costs are equivalent to 8-10 new schools over a 3 year period. 
– Higher insurance costs for the SCA jeopardize the future of their Owner-Controlled Insurance Program, which provides insurance to over 800 M/WBE firms. Without this program, hundreds of M/WBEs may be put out of business.
– According to many disaster relief groups, the Scaffold Law has severely impacted reconstruction after Superstorm Sandy"

The impact to New Yorkers has also set legislators into action.  On the same day of the the gathering, a new proposal was introduced by Assemblyman John T. McDonald.  The proposal, which can be read here would change the standard from absolute liability and introduced contributory negligence when determining fault and damages.  The idea has been gaining momentum in the State as several influential periodicals have recently wrote about how the scaffolding law negatively impacts business in the State.

Mr. McDonald said this about the legislation he has introduced

"Safety is ultimately most important, which is why the reform we propose would simply make liability proportional to fault and would not weaken the law's safety provisions. By doing this, we are applying the same standard to every other type of liability throughout New York and we preserve the right for injured construction workers to sue, because we recognize the unique and dangerous nature of their work. We believe that proportional liability, when included in underwriting insurance, will lead to a reduction in the high insurance costs which we must hold insurance companies accountable for. In fact, according to a Cornell study peer reviewed by the Transportation Research Board of the National Academies of Science Engineering, and Medicine, "absolute liability" may actually increase the risk of work site accidents. Fixing the law would not only lower construction costs — which would allow firms to allocate more funds to hiring and compensation — it would actually create a safer work environment for all.

As lawmakers we must work together to solve problems and move this state forward. This is why we have decided to reach across the aisle and we stand ready to work with the governor and all of the stakeholders to fix this unjust and costly liability law. With the state budget currently under discussion, Scaffold Law reform should be a priority for all involved parties as we strive to make our state a more affordable place to live, with a friendlier business environment and more opportunity for our men and women in the labor force."

It should also be noted that New York is the last State to have the absolute liability as the standard since Illinois changed their laws in 1995.

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/new-legislation-reforming-scaffold-law-introduced-advocates-hit-capitol/