Landlords have been hit hard over the past couple of years. Even more so for those who own properties in NY. One of the biggest challenges now is how to keep up with rapidly escalating taxes, and especially property taxes. Here are some of the ways you can optimize, keep up, and continue to succeed.
The Issues
In addition to all of the extremely anti-landlord and anti-investor rules that have hit NY landlords recently, then there are all the side effects of the COVID lockdowns and new policies.
In addition to some experiencing a stalling of income, there has simultaneously been the double hit of rapidly rising inflation and expenses. This includes labor costs, construction materials, and a barrage of taxes.
So, how can you help offset this pinch?
Raise The Rents
Despite all the hype in the media about people not being able to afford the rent, the Realtors association reports that those looking to move now have 15% more to spend on the rent than existing tenants. In fact, many areas are seeing rents up this year from 14% to 20%. That’s a trend that appears will continue into 2022.
Switch To Short Term Rentals
Annual rentals have become more than an extreme liability for property owners. Switching to short term rentals can help negate much of that risk, including eviction bans. Short term rentals can often fetch prices that at 3x higher than annual rentals. That can go a long way towards covering rising costs and taxes.
Refinance & Restructure Debt
Interest are currently extremely low. Refinancing to extract captive equity can help provide the cash to cover extra expenses and taxes. Or refinancing to lower rates and debt payments can create more slack in cash flow.
Insurances
Insurance can help protect against more unexpected costs, like major storms. Layers of business and property insurance could help fill income gaps if current issues persist. Reinsurance and other strategies can help lower costs and produce tax benefits.
Challenge Property Tax Assessments & Bills
Property Tax Adjusters, Ltd. can help you challenge your flawed and over-blown property tax assessments and bills to get them substantially reduced. This creates even more financial slack, and can influence property value, financing capabilities and more.