What is the Value of a NYC Property Management Company?

There are a number of real estate investors who don’t believe New York City property management firms serve any real purpose. However, there are many more investors who believe professional property managers in the boroughs of Brooklyn, Queens, Manhattan and the Bronx  do have value and that is why they rely on them. There has been an ongoing argument among owners of New York City rentals and one that isn’t likely to have resolution with our lifetime. So, how is a new investor supposed to know whether if it is a benefit to use a New York City property management company or should you do it yourself?

The answer to this age old questions doesn’t really have a correct answer but it needs to be addressed on a case by case basis.  What works for one individual won’t work for another.  It would depend on circumstances that only the investor would know.  Therefore it would seem that it would be a personal choice that only the investor can decide.  We believe that there are factors that the investor/homeowner should look into before deciding whether to hire a New York City property manager.  Below are the factors:

How much knowledge do you have about professional property management services in New York?  With owning or managing properties, there is a lot of technical and legal issues that an investor must know when owning property in New York City.  The rules and agencies that are involved are plenty and making a mistake can cost thousands.  Not being exposed to the everyday issues that come up with these regulatory bodies and dealing with them can cause not only a monetary loss but a loss in time for the investor or homeowner.  If this is the case for you, then you should consider getting professional help.  If just for someone to guide you through the early steps of owning then that would be a good step.  Once you get your feet wet with the process and the agencies that you would deal with then you can take it on your own if you want to.

Will you be able to provide superb service to your tenants? The rents in Queens, Manhattan, Brooklyn or the Bronx are high.  The cost of housing in New York City is one of the highest in the United States.  Your tenants expect great service and it would be up to you to provide it.  Providing great service will help with the retention of these tenants once their leases are up.  The ability to drop everything and assist the tenant with a problem in their apartment is an example of great customer service.  Being able to do something without it not being scheduled and in a quick manner is important when you own property.  The majority of owners have a full-time job or own several properties and need to tend to other things.  This would mean that they are not able to give 24/7 service and would probably need professional property management.

Can you handle the everyday fatigue of managing your property? If you are the type of person who does not handle stressful situations well, then managing your property in New York City should probably be left to the professionals. However, if you can drop everything that you are doing and deal with issues quickly at your property and have an objective approach about the situation, then you may not need professional management.

If you would like to research New York City property management in depth, please contact Blue Harbour Property Management. We will discuss what may be the right fit for you as an investor/homeowner.

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Taking the Complications Away on the Decision to Hire a New York City Property Manager

Many homeowners that are looking for a property management company in New York City are overwhelmed with the litany of services and fees associated with it that the larger property management companies provide . For instance, many professional property managers in Manhattan offer an extensive assortment of services for investors to choose from and they may range from sending out template letters to tenants to garbage disposal services. While this does give the investor more property management options, not all of these services are necessary.  It will be an easy way to tack on more fees and get more money out of the homeowner/investor.  Therefore, when you are looking for a professional New York City property management company, look for a company that keeps it simple and not over-complicate things with lists of services.

One of the nightmares that we have seen in the past is that an investor say in Queens signs a contract with a property management company that has too many fees that are not explained and when the beginning of the month comes around, you get hit with astronomical fees that were not expected.  Both parties will have a bitter taste in their mouths and it can lead to an undesirable relationship.  At Blue Harbour Property Management we keep things simple for you.  Everything is set in stone with set fees. Also, the relationship will benefit as you will be assigned one person to your property and will be able to speak with him or her about fees or services as they become necessary.  We like to keep our clients happy and have them understand how we work on a daily basis.

To give you a preview of the types of services we provide investors with New York City homes for rent, read the brief list below:

• Marketing and Advertising – Your Queens, Brooklyn, Manhattan or Bronx rentals will receive our up to date marketing and advertising programs to ensure your properties are leased in a short period of time.
• Screening of Tenant Applicants – Once interest is generated and you begin receiving applications from interested renters, our property managers in Queens, Brooklyn, Manhattan or the Bronx will conduct a thorough background, employment history and Housing Court checks on all applicants. This helps to guarantee that your rentals are filled with good renters.  We also make sure we sit down with the prospective tenant and have a one on one interview with them.
• Maintenance and Inspections – To be sure that your houses for rent in New York City are well maintained and always up-to-code, we conduct routine inspections on all of our managed properties. We will also handle the coordination of maintenance repairs when a report is made by one of your renters.  We can take requests via our automated system online or through the telephone.
• Rent Collection – We will collect and disburse your monthly rent payments in the manner that you deem easiest for you.

That is just a short list of what services we provide for investors.  As we have said, we like to keep it simple.  Should you want information please feel free to call our office here at Blue Harbour Property Management and we can give you an idea of how easy the entire process can be.

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Rental Properties and What the Investor Should be Looking For in NYC

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.

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5 Tips on Winterizing Properties and Preparing for the Cold Weather

The weather in New York City can be brutal in the Winter.  With the below freezing temperature and snow it can cause damage to your property.  It also can feel like it is a never ending period of the year.  As a New York City property management company we have seen and dealt with many issues that have needed immediate service.  Also through trial and error, we have come up with some tips in winterizing your property in order to prevent significant damage through these cold months.

1.  Clean your gutters-  Making sure that water can flow freely through your gutters now will help prevent icicles and ice dams from forming later. The faster that rain can flow away from your drains, the better it will be for the water not being able to freeze up on your roof and shingles.
2. Install draft guards underneath all doors- The space under a door is a huge way for heat to escape one room and float into unheated areas where it isn’t necessary.  Draft guards are affordable at a price between $9-13 and you can pick many different styles if you are interested.
3. Insulate pipes and hot water heaters- nothing is more scary than pipes bursting in the Winter.  It can cause severe damage to your property and the property of your tenants. Nothing is more of a worry for a property manager to get a phone call in the night indicating that pipes have burst at a property.   It is important to get on top of this before the harsh winter months because once a pipe freeze over, you will have to wait until it thaws before water will be able to move freely again.  There would be a need for warmer temperatures for that to occur.  If warmer temperatures do not come, the pressure will lead to the pipes bursting and water damaging ceilings, floors and property.  It is advisable to use fiberglass insulation around your pipes.   Insulating your hot water pipes can help raise the temperature 2 to 4 degrees. This can allow you to get piping hot water on a lower setting, saving you both energy and money.
4. Inspect for leaks and holes- As it gets colder, you will probably be able to identify where cold air is seeping through.  Walk around your home and inspect and feel around your doors, windows, lights, and switch plates for cold air.  You can caulk up places where there are leaks.  Caulking usually cost around $20 and lasts over a year.  If you find holes, it is advisable to use insulation and drywall the area if necessary.
5. Check your Thermostat and Furnace- You should check your furnace.  Normally they need to be replace every 2-3 months.   A clean filter can save you up to 15%o of your heating bill and your furnace runs more efficiently. Programmable thermostats are huge energy savers.  The programmable thermostat may be set to allow the temperature in the house to drop when the house is unoccupied during the day and also at night after all occupants have gone to bed, re-heating the house prior to the occupants arriving home in the evening or waking up in the morning.  This will put less stress on your furnace and save you up to 8% on your energy bill.

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Benefits of Owning an Investment Property in New York City

Investing in a house, multi-family apartment building or condo can be a tremendous avenue for the individual.  It makes the investors his or her own boss and may set you up for tremendous revenue streams in your later years.  It can certainly supplement whatever retirement plan you may have at your employer.  One of the key ways of maximizing your investment is choosing a property management company that can do these things for you.  Especially with rising rents and complex building and landlord and tenants laws in New York City, it is important to hire a property management company that will alleviate your time and effort so you can concentrate on other avenues of your life.  Once you are able to find the proper NYC building management company, you can then look at the long term benefits of owning investment properties.

One of the main reasons why individuals invest in rental properties is due to the additional income the property will generate. When renting a home, apartment or condo, owners have the opportunity to acquire cash on a monthly basis. When this occurs, it is called a landlord’s current income; the amount of cash that is left over after the mortgage is paid.

Another reason is  you become your own boss.   You choose property you want to invest in, what location you would like to invest in.  You can decide whether investing in Queens, Brooklyn, Bronx or Manhattan would better suit your long term goals.  You decide what tenants you want to rent to, how much the rent will be and in particular how you want to manage the property.  Although it is nice sometime to have the control of being the boss, it is always a nice benefit to have someone on your side when it comes with dealing with day to day operations.  You can hire a property manager and discuss a plan on how you would like your investment property to be managed.

Lastly, with investment properties, you are entitled to huge tax deductions. You can write-off interest on your mortgage or on any credit cards used to make purchases for the property. You can write-off your insurance, maintenance repairs, travel expenses, any legal and professional fees (including property management fees), and even your property taxes.

There are many other responsibilities the go along with owning a rental property including tenant screening, landscaping upkeep, maintenance repairs, accounting and more. If you are interested in investing in real property and believe you may not have the time to do handle the property like how you would like to, contact Blue Harbour Property Management. We are a trusted New York City property management company that specializes in management services. We can assure you that all of your landlord responsibilities are being met and taken care of. Contact us at 718-843-1185 to learn more about how our services could help you add to your monthly rental income.

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What Does A New York City Property Management Company do?

One of the most valuable aspects of hiring a New York City property manager is that we work 24 hours a day and 7 days a week on behalf of the owner of the property.  Whether it be a  maintenance issue, such as broken locks which causes impairment for the tenant to a roof leaking issue on Christmas Eve, a property manager would be there to tend to it. A New York City property management company can respond quickly so the property isn’t damaged further and the health and safety of your tenants isn’t at risk. We are there to make sure money isn’t being lost by more damage occurring or residents not being served. If  a property management company doesn’t respond quickly it can cause severe damage to the property itself or the tenant can withhold rent which would affect the income going to the landlord.  You must have a property management company in New York City to deal with all issues such as tenant relations, maintenance and marketing strategies.  Property managers can also reduce your liability by being available all the time.

Being on call allows our owners to enjoy their leisure time and think about investing in other properties that can maximize their retirement years.  The stress relief of having someone handle all of the tenant issues is also a benefit of having a full time property management company.

In New York City, the landlord and tenant laws are very strict and pro-tenant.  It is important that you hire a competent New York City property management company that can weave their way through issues at Housing Court, Department of Buildings and the Department of Sanitation.  Being able to appear on behalf of an owner is also another relief and benefit.   We stay in front of the best practices in property management. We understand the market, which helps us to price rentals, find you the best tenants, market properties, and conduct in-depth tenant screening. We know that having a strong lease is necessary to protect you and your investment. Property managers understand fair housing and all the city regulations required for rentals.

At all times, the property management should be working on behalf of their clients and maximizing the revenue.  We take great pride of this at Blue Harbour Property Management.  Whether it be a two family house or a multi-unit apartment building Blue Harbour Property Management can help with an owner’s needs.   Contact us if you have any questions about our services.

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Reducing the Risk of Fraud in the Application Process by Hiring a Reputable New York City Property Management Company

Reducing the risk of fraud in the application process in obtaining an apartment in New York City   

can be faciliated by hiring a reputable New York City property management company. The threat 

of rental scams in the NYC area is major source of worry for both the landlords and the tenants in 

the recent times. Scammers posing as landlords have become a very real challenge for renters 

looking for a home. When asked for personal or financial information, renters/tenants readily 

provide it to scammers without suspecting a thing. And today, where technology has eased up the 

process by taking it online, it’s very easy for intelligent fraudsters to fool unassuming tenants. To 

combat this problem, it is essential to recognize the indicators that lead to scams and take measures 

against them. For tenants, it is important to make sure that your apartment management company, 

property management company or managing agent has the correct credentials to conduct business 

in the State. For rental scams, there are some red flags that can jump out. An offer of an impossible 

deal; a beautiful and expensive property at an unbelievable price, well below market standards. 

Prices rarely fluctuate significantly and tenants should research to see what market rates are in the 

area they are researching to live.

Another tipoff is if an individual is looking for money upfront before meeting the landlord or property manager. Licensed real estate agents are paid in New York at the time that the lease is signed. Monies should not an any times flow to a third party before then. Also, if the scammer wants to meet at a place that is not the property to be rented that should be a red flag as well. Most of the time there will be excuses but you should always require that you meet at the property.

Another issue is when scammers put advertisement in free classified with vague and template language in the listings. The language used in the listing is an important criterion for determining the authenticity of the ad. Sometimes these individuals use a machine to generate generic content to lure prospective tenants to inquire into their fictional listing. At all times be very skeptical of these listings.

One of the ways to get around these issues is to work with realtors working with the property management company or go directly and contact the actual property management company. A property manager is a professional who can take care of all the formalities of a rental process and ensure smooth business transactions and processes between the landlord and the tenant. Hiring a reputed New York City property manager ensures that there is a minimal risk of scammers impersonating as landlords and robbing tenants. In the alternative, the New York City property manager will ensure that there is a screening process in order to place and identify the good from the bad tenants.

The criteria for an ideal tenant are:

• Timely payment

• The intention of the tenants to rent the property for a long time

• The tenants should take good care of the premises and inflict minimum damage during their stay

• The tenants past Court actions in Landlord and Tenant Housing Court. A reputable and diligent building management company will take the further steps in order to get the Court records to see if the prospective tenants have been evicted for non-payment of rent in the past.

Blue Harbour Property Managments ensures the safety of the information of our clients. We employ the best measures and techniques to keep all the data safe and make sure that a business agreement is formed between client and landlord in a professional researched manner

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NYC Property Management Checklist in Maintaining Tenants

The property manager is the ultimate factor of whether you make it or break it in the field of buy and hold real estate. Especially in New York City, where space is competitive and prices tend to fluctuate rapidly. That is why it is important for apartment management companies maintain a process to keep their good tenants. It’s a pretty simple process and once the deal is bought and we have projected the expenses for said properties, the last thing is to ensure that you have a reliable and dependable property manager to maintain and keep an eye on them. However, the next time you go to organize a property manager, try to keep some specific tasks in mind when you are hiring someone, doing it yourself, or outsourcing it to a top-notched New York City property management company. As a property manager’s sole priority is to keep tenants happy (the ones that pay their rent on time), read on for the following ways to keep them happy and paying.

1. Vacancies

If you don’t have to spend a whole heap on constant maintenance for the property, a vacant unit is the worst thing to have in your portfolio. No tenants means no money, and no money means no profit; you do the math. There are times when tenants will need to move out for a number of different reasons and when this happens, property managers need to fill the vacancy as fast as possible. 8% of your annual revenue is lost for every day you don’t have someone renting. Property managers need to keep in mind that to deal with filling up these vacancies, three methods are their responsibility. They are marketing and sales, screening, and onboarding.

Marketing & Sales

My company employs a separate agency for this reason and they work based on commission. A tenant Relations Manager doubles up as our property manager (which is essentially the same thing) and the first move is to organize some marketing. Using a program called VFlyer, we dump a whole heap of templated files in CraigsList and other similar sites, like Trulia. The results are then measured based on how many applications, showings, and calls we get for the listing. This is a crucial step as it allows us to figure out if we are charging too much or too little. If no one calls, it is obviously too high and if too many call, we know we can probably do better. Adjustments can be made all the time until the correct documents are signed so feel free to charge what the property is worth.

Screening

The Tenant Relations Manager will then begin what is called the screening process and run a bunch of credit, eviction, and criminal checks on all our applicants and potential tenants. Along with a number of different informational data, such as car insurance or other responsibilities that could affect rent, the Tenant Relations Manager inputs all the data into a specific scoring sheet to determine their suitability. After an applicant accepts our proposals, they are then expected to pay a month’s rent to take the listing down.

On-boarding

An important yet frequently overlooked factor into the management process, on-boarding simply translates to getting the tenant to sign the lease package after we create it. This is the first and best time to lay down the law and rules for living in the property. Enter everything into the contract itself and run it through with the tenant before they sign. Everything from rent to guests, repairs, and any other such issues should be completed at this point and handled immediately.

2. Collections

Another process that is vitally important and that the property manager should be responsible for is that of collections. When tenants don’t pay their rent on time, someone needs to remind them to complete the payment as soon as possible to avoid further issues. Sometimes, visits are necessary from the manager themselves for tenants to understand the severity, and in the end, court procedures may need to be filed and carried out. It is an unfortunate position but it is one you simply can’t pass on if you are to be successful in real estate.

3. Work Order Processing

Now that the property manager has been sorted and you have tenants paying rent, you will need to make sure that some maintenance issues are carried out periodically. Every time though, the property manager needs to document everything that was carried out, asked for, and repaired. When it comes to my company, we use a software program called Rent Manager that allows us to track, create, and process work orders for any technicians or subcontractors involved in any work needed. Every week, we detail and check the outstanding orders that need to be completed, how many new ones have arrived, and how many were completed. Afterwards, our Tenant Relations Manager calls the tenant back and asks if they are satisfied or if there are any other issues that need sorting. It’s a small task at the end, but it is one that makes such a big difference in the eyes of our tenants. They know that we actually care.

4. Lease Renewal

After a lease has expired and run its course, the general option is to extend the leases month by month (in the US anyway). Many lazy property managers and owners miss out on a lot of money by allowing the leases to stay the same or not worrying about updating and signing a new one. The problem with this is that your tenants can move out whenever they feel like at a moment’s notice. Everything tends to increase over time and to counter that in costs, you will have to increase and renegotiate your rent prices too. Failure to do so means a slow and painful death, real estate wise. Your property manager needs to make sure that they have a system in place for checking the items mentioned previously. Every month, a report is carried out for any looming lease endings and renewal letters. Sometimes you can even offer yearly or five year if you want to avoid any vacancies in the future!

5. Turnovers and Moving Out

A simple enough term to understand, moving out is exactly what it sounds like but a management system for this process still needs to be implemented. We carry out a checklist of what the tenant needs to be billed for or taken out of their bond. Wear and tear are taken into account and our maintenance team works together with our property manager to get the repairs handled in less than a few days. When everything is sorted, we then get the TRM to process any checks or refunds required for tenants.

In Conclusion

Marketing the units that are vacant are only half the battle when it comes to dealing with them. You need to remember that the other half is focusing on getting your units, lots, and other properties ready for rent. Use the same paint, cabinets, and flooring for all your properties so that you can save costs on repairs and maintenance. Have a plan in place and ready for action as soon as you have any vacancies in your portfolio. Ensuring that your tenants are happy will mean that they pay their rent on time and by holding them accountable for the house, you will have fewer issues to deal with. Building management companies should always take this into account in their underlying NYC property management business model.

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SMOKE ALARM INSPECTIONS A TOOL IN NYC PROPERTY MANAGEMENT

Once a property is fully occupied and stabilized it is easy to simply lose focus or ignore the occupied units. That, unfortunately, is a practice which is not in the best interest of a property owner. In New York City it is necessary to physically inspect for smoke detectors. It is important for property management companies to understand the importance of using the inspection as a tool for inspecting other aspects of the building as well. Specifically, Local Law 112 amended article 312 of chapter 3 of title 28 the Administrative Code to require owners to replace required smoke alarms when they exceed the manufacturer’s suggested useful life. Alarms installed before the effective date of the law (April 1, 2014) must be replaced by the later of six months after the effective date of the law or the expiration of the manufacturer’s suggested useful life

of the alarm. A smoke alarm installed before the effective date and whose end of useful life isn’t known must be replaced with an compliant alarm within seven years of April 1, 2014. And all newly installed alarms must be equipped with an audible “end of life” warning device and with a non-removable, non-replaceable battery that powers the alarm for a minimum of 10 years. A longlife

battery sealed inside an alarm makes it virtually tamper proof and eliminates the risk of tenants disabling the alarm. The law also amended the Housing Maintenance Code to clarify owner and tenant responsibilities. Owners are required to inform tenants of the owner’s duty to replace expired alarms, and tenants are required to reimburse owners for such.

This inspection is also great opportunity to do a more thorough inspection, thereby protecting the property and addressing any potential liability issues. It is an opportunity to assess parts of physical property often ignored. While the periodic inspection requirements from other municipalities may be different, the discipline of performing a six-month inspection is a very good idea.

During the inspection process an owner or property manager can look beyond the smoke detectors at other aspects of the property to ensure that each tenant is taking care of the property and that there are no situations which require the owner’s attention, such as illegal roommates or the tenants doing excessive damage to the property. The six-month inspection can also be used to check all the plumbing fixtures to make sure that they are working properly and to make sure that, even more importantly, they are not leaking thereby causing excessive utility charges to the owner.

This inspection also presents a very good opportunity to look for mildew or mold in a unit. An owner can easily take the time to look at the likely places, under the sinks and in the bathrooms where there’s plumbing and moisture gathering. The early detection of mildew is a huge benefit as it allows the owner to address the situation before it becomes problematic and before it becomes a problem with the tenant. During an inspection an owner can also look at the door locks to make sure they’re secure, as well as the latches and locks on the screens and windows to ensure the safety of the tenant and also address potential landlord liability. Whether you are in apartment building management, property management of co-op and condors and residential property management it is always a good idea to use this process.

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HOW TO TRANSITION FROM SELF-MANAGEMENT TO PROFESSIONALLY MANAGED IN NEW YORK CITY

Transitioning a Community Association from Self-Managed to Professionally Managed

Agreeing Changing your Association from self-managed to professionally managed is an important decision for any Board of Directors. We hope you will find this information helpful as you consider this alternative for your community association and retaining professional New York City property management.

The major responsibility of any community association Board of Directors is management. Although the association can hire assistance in operations management and property maintenance, the Board remains responsible and accountable for HOA management policy.

There are three basic management alternatives for the Board to consider:

Self-management by the Board of Directors. The Board establishes policy and procedures, and employs several companies and/or individuals by contracting for various maintenance and operating services, and the Board supervises their performances.

Self-management utilizing a Community Manager plus staff, all employed by the Board of Directors. The Board employs a full-time community manager/administrator who assumes all maintenance and operation responsibilities. Under this alternative, the Board sets policy, supervises the manager, approves the budgets, and monitors expenditures.

Professional management utilizing a Community Manager employed by the management company. The Board contracts with a professional management company for property maintenance, operations, and management responsibilities using the management company’s employees. The Board is responsible for setting policy and approving an annual budget.

In any community there are various factors, such as resources, complexity and available talent, which influence the type of management that is appropriate. Important factors to consider include:

Community Size and Complexity . Generally the larger the association and more diverse its services, the more sophisticated the management system and skill required.

Financial Resources Available . The smaller the available funds in an association budget, the lower the level of affordable management sophistication.

Complexity of Community. The more complex the community, and the more sophisticated care and attention it requires, the more sophisticated and experienced the management personnel must be.

Availability of Appropriate Volunteer Resources. The less the owners are willing, or able, to volunteer time to carry out administrative functions and the less the administrative talents needed are available, the more contractual talent will be required of the management company.

Extent of Services and Amenities. The greater the number, variety and complexity of association services and amenities, the greater the administrative burden.

At first glance, it may appear that hiring a management company will increase the cost of running the association. You will be paying a “management fee” that you don’t have to pay with an independent CAM, however, there are several other ways that a management company can help you reduce your other costs.

Advantages of Professional Management

SupportSupport team. Management companies have personnel with varied expertise available at any given time to assist the on-site manager and the Board of Directors or committees as needed. The support team would be available to assist the manager or Board of Directors in developing policies, homeowner’s handbooks, assisting in holding annual election meetings, special homeowner’s meetings, etc.

A management company will have tested operational systems and proven procedures already in place.

A management company relieves the Board of employer/personnel burden and the task of service contractor selection and supervision.

There is a depth of personnel to prevent disruption of service because any one person is not available.

A management company can be more neutral and impartial in implementing and enforcing Board policy and CC&R’s. The management company would treat this as a business and all homeowners will be treated fairly and professionally as a third-party. This relieves, or insulates, the Board from personal homeowner interference or attack. A management company has on-site training, education and replacement personnel available to the association.

All bookkeeping functions are performed in the management company’s administrative office. The advantages is that it offers a check and balance system in addition to reducing the association’s on-site staff. The bookkeeper will have the benefit of supervision by a Controller, and in the case of absenteeism, a back-up bookkeeper can step in at any time so as not to interrupt accounting services for the association.

Cost savings to the association in the selection of subcontractors. Many large management companies have subcontractors in all fields of maintenance to whom they give a great volume of business. Many times they can secure substantial discounts which are passed onto the association due to the volume of business the management company is giving to that subcontractor. In addition, the management company will only recommend experienced, proven subcontractors…people who have earned their respect and who have a good track record with the management company at other associations.

A management company is better qualified to hire and terminate employees and to perform an on-going evaluation of the on-site staff.

Disadvantages of Self-Management

The Board becomes an employer and must deal with resulting personnel issues.

Difficulty finding and retaining the appropriate combinations of skill and experience to coincide with existing budget.

Additional costs incurred due to the need for replacement because of illness, vacations and disruptions that result from unexpected terminations.

The Board must have sufficient volume of the right work for talent hired to achieve appropriate cost-benefit ratio.

If accounting is done on-site, it is impossible to have a check and balance system in place and is also very costly.

Board time and involvement. The majority of Boards do not have sufficient time to commit on a day-to-day or month-to-month basis.

Selection Criteria for Professional Management

When the Board determines that management by a professional management company is the preferred method, and that a competent and experienced company is available at a fee which the association is willing to pay for services rendered, then the process of finding the right management company begins. Define your requirements and identify qualified Management Companies to ask for a bid. Make sure you define the criteria that are important for you in the selection process. Selection criteria examples to consider include:

Reputation/feedback from references in the area, is this a company you can trust to do what is best for your community?

Contract flexibility – will you be locked into an agreement that won’t allow changes?

Customization – does the management company force processes on the Association? Or can they tailor their services to meet the needs of the community?

Quality of the people – look beyond the sales team to understand the quality of people in the company – how does the company hire, develop and retain employees?

Understand the total cost – some companies have a wide variety of surcharges/extra fees that can increase the cost of their services

If you let the community manager manage, then the time involvement for the Board and/or their appointed committees will be less. Remember…as the Board of Directors, one of your main functions is to direct and advise the management company. The many hours per week involved in accomplishing property tasks will be the responsibility of your new management company and its staff.

http://www.blueharbourpropertymanagement.com/how-to-transition-from-self-management-to-professionally-managed-in-new-york-city/

Visit us at www.blueharbourpropertymanagement.com

BUILDING EXTERIOR MAINTENANCE FOR FALL: 3 THINGS PROPERTY MANAGERS SHOULDN’T IGNORE

Before the winter winds and snowfalls, it’s time to ensure the exterior of your building is ready with these three fall maintenance tips. For property management, especially in the New York City region, it is very important do so. It will save you in the long run with maintenance and issues with your tenants.

Fall is the time to check the roof before it’s laden with snow. Ensure the roof is free of damage, and check for loose or weak spots. Clear the gutters from any summer or fall debris to ensure they’re free and clear for water drainage. Additionally, consider installing heating cables specifically made for gutters. This prevents a freeze up and promotes ongoing ice and water drainage, rather than all at once when the ice thaws. Not only does a pre-winter roof check prevent any dangerous damage, it will extend the life of your roof.

Now is also the time to seal any cracks around doors and windows before the winter winds whip in and start sucking the heat out of the building. Be sure to check entry doors and common room windows, both from the inside and outside as well. Get the right caulk for the job if you find any leaks. For more information on types of caulk and what they mean for building maintenance, click here.

Finally, also check around the building foundation for any cracks in the masonry. If water gets in these cracks and freezes, it can lead to further cracks, ice damage, and mold. Openings in these areas can also lead to water leakage when the snow melts.

http://www.blueharbourpropertymanagement.com/building-exterior-maintenance-for-fall-3-things-property-managers-shouldnt-ignore/

Visit us at www.blueharbourpropertymanagement.com

3 Tenant Screening Tips for Apartment Landlords

It takes finding the right tenant to get the most out of your apartment rental business. An efficient and thorough tenant screening ensures that you get only the most qualified applicants, while sparing you from having to waste your time negotiating and touring, and dealing with cancelled agreements. Here are 3 tenant screening tips to keep in mind.

Know the law. A lawsuit for tenant discrimination is the worst thing that could happen during the screening process. Be guided by the law about what you can’t discriminate against (e.g. gender preference, disability, marital status etc.) and remember them when creating your rental ads or answering inquiries through the phone. 

1.    Be specific with your house rules. Restrictions should be clearly indicated in your ads. If your apartment is only for non-smokers, for people with a limited number of cars, or with zero eviction history, spell them out on your postings, lest you sound discriminatory when you reject an applicant for such reasons.  

2.    Get help. If you own quite a number of units and you’re in need to fill vacancies for a continuous income stream, apartment property management companies can lend you some assistance.

Managing a business does not necessarily mean you need to lose time for yourself and your loved ones. After all, good management is all about efficiency. With a property manager minding some of your affairs, you can focus, instead on growing your assets, while maintaining a work-life balance.