Property management is no easy feat. From attracting quality tenants to understanding fair housing and local laws, New York landlords must plan for the highs and lows of residential property management.
For first-time landlords, we’ll break down the essential rental documents you’ll need, from the rental application form to a New York residential lease agreement. The primary purpose of these documents is to eliminate legal issues and screen applicants properly. Follow these guidelines to make the property management process efficient through each phase of the tenancy.
Overview of New York’s rental property guidelines
As a property manager, your goals are to maintain a good relationship with the property owner and keep quality tenants satisfied while navigating the ins and outs of property management.
Understanding the nuances between rent-stabilized and rent-control tenancies in apartments, sublets, lofts, and hotels is key. Being thorough, organized, and knowing the rules distinct to New York will foster a smooth-operating process and help landlords find ideal tenants who pay their monthly rent on time and are good neighbors.
Here are some important key points:
- Renter protection: The Housing Stability and Tenant Protection Act (HSTPA) of 2019 provides renter protection across the state.
- Rent increase limits: The HSTPA 2019 affects how much a landlord can increase the rent on rent-stabilized units.
- Rent stabilization: Beyond New York City, rent-stabilized apartments are buildings with six or more apartments built before January 1, 1974.
- Annual rent increases: Select New York State counties set maximum rent increase rates annually, effective October 1 each year.
- Grace period: New York State rent payments have a grace period of five days, meaning rent is only considered late if received more than five days after the due date.
- Liability: Landlords are not exempt from liability if injuries occur on a rental property due to a landlord’s negligence.
- Infestations: Before the tenant moves in, you’re responsible for removing infestations, including bed bugs. All landlords are obligated to notify the prospective tenants of bed bug infestation history.
What do landlords need during the rental application process?
All prospective tenants must complete a rental application form. A landlord must also get consent from applicants before running credit reports or background checks.
Lease agreement, addendums, and inspections
Each property type requires both a signed rental contract that details the lease terms and a signed inspection form documenting the state of the rental in case property damage repairs are needed later. Have these essential documents in order before you approve an applicant.
Tips for first-time landlords and property managers
Familiarize yourself with New York’s state and local laws. Many landlord-tenant laws protect tenants from discrimination, guaranteeing everyone has equal housing opportunities. Guided by these laws, property managers can avoid legal action.
Stay organized. Having documents ready for any circumstance will streamline the procedures. When you need to fill a vacancy, start learning the details about the rental. For instance, what’s included in the rent? Virtually all New York City apartments supply heat and water for free, so there are no utility payments from the tenant for these services. Some NYC listings even specify that electricity is included with rent.
Once you have posted your rental listing, begin screening potential renters who submit their applications for the rental unit. Landlords can learn how reliable a prospective renter will be by conducting an in-depth screening of their credit reports, income source verification, and other pertinent information.
The tenant screening and rental application process
Every landlord has different criteria for their tenant based on the property they’re renting out. The 40 times rent rule is commonly practiced by some landlords. If an applicant’s annual income is 40 times the monthly rent, it assures landlords they can afford it. The one common denominator for each property management company is finding someone who can reliably make their monthly rent payments.
With SingleKey, you can identify the top candidates through a comprehensive tenant screening process that includes:
- Equifax credit check
- Background check
- Social media scan
- Court record search
- Rental history
- Income and employment verification
A credit and background check will reveal bad credit or healthy credit history. It will also disclose any criminal history. Property managers will not have access to tax returns. The IRS does not report tax debt to consumer credit bureaus, according to the Taxpayer Bill of Rights.
Questions landlords can ask during the screening process
Advertising your rental and speaking with people over the phone or in person comes with the territory of being a landlord. Being cordial and personable can help the applicant feel at ease while answering questions.
When you ask an applicant valid questions, you’re evaluating if they will be a right fit. Here are some helpful questions you can ask during pre-screening:
- Do you have pets?
- Do you own a vehicle?
- What is your monthly income?
- Have you declared bankruptcy in the past?
- Do you smoke?
Asking open-ended questions is also an effective way to learn more about a person. Keep in mind though that due to the federal Fair Housing Act, housing providers may not discriminate against applicants. Asking questions about a prospective tenant’s race, marital status, nationality, religion, or sex should be avoided.
End of tenancy
For those renting to tenants with a month-to-month lease, use a notice to terminate the tenancy form to end the tenancy.
New York State is known for having many tenant protections on housing. Here are some examples of when a landlord can opt to evict after giving proper notice:
- When a tenant owes rent money
- When a tenant is delinquent
- When a tenant or guest deliberately destroys property
- When a tenant is a nuisance
The property owner will need to undergo a court proceeding and obtain a judgment of possession from the court. The landlord usually will not deliver or send an eviction notice. A sheriff or marshal will carry out a court-ordered eviction.
FAQ: Important documents every landlord in New York State should know
Our final thoughts
When it comes to being a landlord, you want to attract renters who will respect your property and pay rent on time. Despite your best efforts, you may still find yourself in a situation where a tenant is continuously late on rent or has violated their lease terms. Learn more about the risks of renting and key strategies to reduce those risks.
This blog post is intended for general informational purposes only and is subject to change. It is not intended as legal advice. Consult your local laws and seek professional legal counsel before making any decision or taking any action based on this post.
