If you’re thinking about buying real estate in NYC as an investment, you’re in luck. Although properties don’t come cheap, the reward is often much greater than the initial investment. On Manhattan Boutique Real Estate discusses the things you can do to make your rental stand out.
There are many reasons that people move to New York City. The parks, food, and people top the list. But no matter how many draws there are, your rental must also be appealing.
To create an aesthetically pleasing listing, start by cleaning the property from top to bottom. Empty each room so that you can start with a blank canvas. Clean the windows, shampoo the carpet, and make sure there are no stains in sinks or on countertops in the kitchen and bath.
Add a fresh coat of paint to each room. Better yet, for a pop of color that will attract eager buyers, add wallpaper as an accent. If you’re not sure what design to use, look online at Spoonflower for inspiration and wallpaper that you can easily stick on and peel off. As a tip, order a test swatch before you commit to a design.
If you have wooden floors, you can sand and refinish these over a long weekend. Or, if they’re in really bad shape, smooth them out with your sander and add self-stick vinyl tile. Better Homes & Gardens explains how to prepare a subfloor, which will ensure that your new flooring stays put.
The Right Rental
If you’ve yet to purchase an investment property, it’s never too early to do your research. Before you start looking at properties, keep an eye on the most recent rental prices according to the neighborhood in which you would like to own. Some areas, such as Downtown Manhattan, can command prices of more than $4,000 per month for a two-bedroom apartment or condo!
You can also talk to the team at Manhattan Boutique Real Estate (MBRE) about which areas have the greatest track record of stability. Your rental home should be affordable enough that you can turn a profit each month after paying the mortgage and putting some money aside for emergency repairs. “New York City properties always appreciate so it is a good investment”, says Joan Brothers, MBRE President. You also need to be able to pay for annual expenses, which Rocket Mortgage notes, include landlord insurance, property management premiums, and utilities.
A Landlord’s Responsibilities
When you are planning to become a landlord for the first time, you will also want to wait until you understand the responsibilities that go along with owning properties. Perhaps the most important is that you are responsible for what’s called the Warranty of Habitability. This means that the home has fully functioning electrical, plumbing, and other systems and zero safety threats, such as pests or broken windows. You also have to comply with the mandates set out under the Fair Housing Act. You also cannot refuse to rent your property to anyone who falls under protected classes, including sex, race, and national origin. Lastly, you will be responsible for collecting rent and issuing eviction notices when these go unpaid. For your first property, it’s usually a smart idea to hire a property manager.
This is not a full rundown of everything you need to know as a new landlord. However, the points above can help you get started. If you’re still unsure of how to proceed, talk to Manhattan Boutique Real Estate and benefit from the team’s ample experience in matching buyers with the right NYC real estate. Once you do find a property, you may find that owning real estate is one of the best ways to enjoy a passive income while also building wealth that you can pass down to your children and grandchildren.