Protecting Your Assets as a Real Estate Landlord in the State of New York

New York Real Estate

The real estate market in the State of New York is an ideal choice for landlords that are seeking highly diverse forms of real estate that will reap a large amount of financial reward.

According to news reports, New York City is expected to get a total of 31,000 brand new housing units by the year of 2020, and most of these units will be located outside of the Manhattan region.

The majority of these units are forecasted to be located in the outer boroughs, especially in Queens and Brooklyn.

Now is the time for real estate investors to lock in to get their share of this profitable endeavor; however, as a landlord in the State of New York, you must place an emphasis on ensuring that your assets are protected.

In this guide, you will be provided with a few steps that will help with the process.

Step #1: Become Familiar with the Laws That Govern Landlord/Tenant Relationships

Prior to opening your doors to tenants, it is imperative that you become familiar with the landlord/tenant laws of the state.

These cover issues such as being in compliant per the American with Disabilities Act, policies against discrimination, when you have to allow an animal in your rental property even if you have a “no pets” policy, housing inspections, tenant rights, landlord rights, security deposits, rent increases, evictions, and similar topics.

In order to protect your assets, it is best to sign up with a reputable real estate lawyer that specializes in assisting landlords and tenants in the State of New York.

Step #2: Screen All Potential Tenants Thoroughly

The next step to protecting your assets as a landlord in the State of New York is to ensure that you screen all potential tenants that you are considering renting to.

You should run background checks, credit checks, and verify employment and income – at the very least. You cannot operate your rental business on looks or personality, alone.

You must do these screenings to ensure that you avoid renting to those that are slow to pay, cause damages, or engage in serious violations of the law.

Step #3: Obtain Insurance

When renting in New York, it is imperative that you obtain the proper types of insurance.

By getting property insurance in New York, you are protecting yourself from unforeseen events that may result in your property being deemed as “uninhabitable”, general liability, tenant accusations associated with negligence, flooding, fire, and various types of natural disasters.

Never skimp on property insurance on your real estate investments. In doing so, you may face loss of assets.

Step #4: Put Estate Planning Documentation into Place

If you are a landlord in New York, it is important to update your will and elect a Power of Attorney. This allows a person you know and trust to engage in and/or make financial-based decisions for you if you get to a point where you are unable to.

Additionally, it helps identify your wishes for your property and money – when you pass away.

Step #5: Get a Property Manager

If you find yourself overwhelmed with the administration side and the legal aspects of your rental business, you may obtain a property manager.

Not only will this professional help to ensure that you are in compliance with the laws, they will handle all of the back-end tasks including paperwork, taxes, repairs, and even collecting rent!

As you can see, there are several steps that you may take that will help to protect your assets while you are serving as a real estate landlord in New York.

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