Should I Hire a Real Estate Advisor?

Unless your organization has a fully staffed, in-house real estate department which is comprised of individuals having a wide range of real estate skill sets, the answer is always a resounding “yes”.   Even if your real estate needs at the time seem simple, such as renewing a lease, your organization must always retain a level of bargaining power; something a dedicated real estate team can deliver through detailed knowledge comparable alternatives in the market.   By limiting yourself to only one option, you have no leverage to push for concessions, no…

New York Property Managers Face Higher Unemployment Taxes

The New York State Department of Labor recently enacted reforms to the unemployment insurance system that will dramatically increase the cost to many employers. Companies with a large proportion of lower wage employees, temporary seasonal staff or who experience higher turnover will be hit especially hard. Real estate property management firms will fall into this category due to the large number of staff employed at the individual property sites they manage and the numerous seasonal staff they employ for landscaping and swimming pool services in the summer months. In addition,…

Rising Cost of Flood Insurance

Commencing 6/1/14, the maximum building coverage under the National Flood Insurance Program (NFIP) will increase from $250,000 to $500,000 per building.  For properties that require such insurance, this could potentially mean a doubling of the premiums on flood policies.  As this coverage is usually mandated by lenders, properties will find themselves forced to absorb the increased operating cost negatively impacting Net Operating Incomes.  However, there are a few measures managers and owners alike can take to mitigate the costs of insurance premiums: 1.    Letter of Map Amendment (LOMA):  if you…