Do You REALLY Want to Become a Landlord in NYC?
Do you REALLY want to become a landlord in NYC? It can sound quite appealing, especially in such a high rent place. But is it something you’re really prepared to take on? Here are some questions you should ask yourself before you move ahead.
Building Rental Process
If you’re renting in a condo or co-op, are you familiar with the application and fees? Do you know how long the process takes? What about how long you’re allowed to rent, if you’re in a co-op?
For more details on what you should know, check out my post Thinking of Subletting Your Apartment? Here’s What You Need to Know.
Property Management and Tenant Issues
As a landlord, you’ll be responsible for handling the maintenance requests and issues the tenant might face. Will your building super be willing to help out to some extent? Are they even allowed to? Do you have reliable contractors you can contact to help you? Do you have the funds on hand (a.k.a. a building reserve fund) to address a major repair if one comes up?
What about hiring a property manager? Could you afford the extra fees? Keep in mind a great property manager can handle anything from a handful of items to the whole process for you. So the extra cost might be worth it!
Rent Payment Issues
What if your tenant has issues paying the rent? There are any number of issues that could crop up for your tenant that are beyond their control. Job loss. Illness. And more. Would you be in a position to help them with any concessions?
What if the apartment remains vacant for longer than you anticipated? Do you have enough capital to weather several months with no rental income?
Better to Sell?
In some instances, it might actually make more sense for you to let the property go and cash out, rather than become a landlord. Not sure which one makes the most sense for you? Then check out this blog post to help you decide between selling and renting your property.
If you carefully think about these things, it can prevent your dream of being a landlord from becoming a nightmare.
Have more questions about being a landlord? Contact me!