Private landlords in New York are being hammered from all angles. Saving money on annual property taxes could be the one thing that saves many, and enables them to avoid ending up in bankruptcy and foreclosure.
6 Million Tenants Default On The Rent
New data reports that six million tenants are behind on the rent across the country. With 25% of all renters in Miami unable to pay the rent. Closely followed by Manhattan, Philadelphia, and Chicago.
This probably couldn’t come at a worse time for many private landlords who thought they could finally see the light of day again.
Demand Is Evaporating
The wealthy have left, the big finance companies have left, and now young professionals are jumping on the wagons to flee NY’s high taxes and living costs.
As this leaves fewer renters, there will be less demand for units. Which means less good tenants to pick from, longer vacancy times, higher vacancy rates, and lower rents.
Rental Operating Costs Are Skyrocketing
Tenants and landlords are bracing for what we are told are going to be the highest heating costs we’ve experienced in 25 years.
That’s along with soaring insurance rates, and other living expenses.
Construction materials for fixing, repairing, and improving rental units are still high. Wait times to get work done seems to be extending.
Refinancing Is No Longer An Option
Unfortunately, those that waited to refinance their investment properties have probably long missed the boat by now.
Lenders are tightening up on underwriting criteria. Some of the world’s largest banks are already selling off prime properties at discounts and to raise cash as they face financial difficulties which could make the Lehman Brothers scandal look like a good day.
Property values are headed down in many cases, and more and more property owners are finding themselves sinking into negative equity positions.
Interest rates are way up, and debt to income ratios are being wrecked by all of these factors coming together.
Appealing Property Taxes
The one thing left that is available to landlords is to appeal and reduce annual property taxes.
Around half of NY property owners could see significant savings by getting help doing this. Which will reduce outgoing expenses, and will help make ends meet. Perhaps being the one factor that enables them to maintain positive cash flow over the next year.
Even if you hope to sell your property and liquidate your NY real estate holdings, reducing tax assessments may be key to getting offers from the few buyers that are still in the market.