Watch Out for High Rental Application Fees When Buying a Condo in NYC

Nick at Hauseit (https://www.hauseit.com) explains why you should watch out for high rental application fees when selecting a condo as an investment property in NYC. Save money when buying real estate in NYC with Hauseit: https://www.hauseit.com/buyer-closing-credit/

Save money when buying, selling and renting real estate in New York and Florida with Hauseit (https://www.hauseit.com). Available in NYC, Long Island, the Hudson Valley and South Florida. Established 2014. Learn how it works: https://www.hauseit.com/how-it-works/
.
.
When you're selecting an investment property condo in NYC, be mindful of what application fees are charged by your building's managing agent for the processing of your prospective tenant's rental application.

There is a wide range of potential fees and fee structures out there. Some are reasonable and and others are egregious. The problem with high rental application fees is twofold.

First and foremost, high fees make your rental uncompetitive. It will either make your rental take longer to find a tenant or the tenant will be willing to pay less money because of the high application fees. In either case, that ends up costing you money which ultimately reduces your return and your overall yield thereby making your investment property a lower upside proposition.

The other problem with buying a condo as an investment property in NYC with high rental application fees is the fact that application fees and pretty much everything in NYC only goes in one direction and that's up. If you know going into your purchase that your building has unreasonably high application fees, it's a very strong hint of what's to come.

Going forward, they're probably going to continue to raise your application fees and every other fee that they can potentially charge your building. The more it gets out of line with other buildings, the worse of an impact it has in terms of your overall yield potential for your rental and it might even make it harder for you to sell if your prospective buyer.
.
.
Save money when buying, selling and renting real estate in New York and Florida with Hauseit (https://www.hauseit.com). Available in NYC, Long Island, the Hudson Valley and South Florida. Established 2014. Learn how it works: https://www.hauseit.com/how-it-works/

Hauseit LLC, Licensed Real Estate Broker
Tel: +1 (888) 494-8258
Email: team@hauseit.com
_
#hauseit #hauseitnyc #hauseitmiami #hauseitsouthflorida #hauseitlongisland #hauseithudsonvalley #hauseitwestchester #hauseitrealestate #hauseitre