If you are a NY landlord you already know it is getting tough out there. If you are being financially squeezed by the many converging factors in the market, how can you save your rental properties and retirement plan?
NY Landlords Bombarded From All Directions
It’s not easy being a landlord in NY these days.
Between rent controls and challenges to evicting bad tenants, with more tenant defaults highly likely this year, the outlook isn’t great for making ends meet, or staying cash flow positive.
Then there is extreme inflation in operating and management expenses, and a tightening of capital markets, and declining values, it can feel like the whole universe is fighting against you right now.
Unfortunately, these trends seem like they may snowball before getting any better.
Six Things You Can Do To Save Your Rental Property
1. Challenge And Reduce Your Property Tax Bills
While the deadline may have recently passed for many landlords to save their properties from foreclosure and being auctioned off due to past due annual property taxes, you may still have time to save yours.
Chances are that you are being grossly over assessed and over charged. Property Tax Adjusters, Ltd. can help you get a reduction and save money every year. It could make all the difference in profitability versus bankruptcy.
2. Bring In Equity Partners
It is not going to be cheap or easy to find any new financing or to refinance real estate today. Instead, you may be able to attract equity partners that can provide a cash injection. Especially if you are doing any value add improvements.
3. Install Energy Efficient Appliances
When it comes time to install or replace appliances, opt for energy saving options. At least those not currently being targeted by new regulations.
4. Renegotiate With Your Lender
While banks and mortgage lenders may not yet be publicly admitting they are in the same situation as 2008, you may be able to head off issues by asking them about loan workouts, loan modification programs, or hardship programs.
5. Restructure Your Tenant Base
Get ahead of the wave of defaults by restructuring your tenant base. As possible, diversify them, without tenants relying on the same employers or industries, and look for those with the financial means to stay long term, even without a job.
6. Provide Human Customer Service
While others are turning off, frustrating, and alienating their best and most loyal customers by implementing AI and automation technology that just doesn’t work well, take the opposite approach. Build loyalty and strengthen your tenant relations by providing access to human property management services.