The post construction processes that contribute meaningfully to a building’s carbon footprint include the lighting, thermal envelope (whether or not a building leaks heat), bill collection and check writing. Yes, bill collection and check writing. Not surprisingly, these items correspond to line items from a property’s expense list.
 
Through online payment transfers, savvy property owners can both increase their ROI (shorter cash conversion cycle), decrease lost payments (the USPS is no internet), and decrease a building’s carbon footprint (no killed trees, far lower carbon emissions). Next generation property management is embracing online payment transfers and reporting for those reasons. This isn’t just green business, it’s good business.

In rental buildings, tenants want to live in a healthier, greener environment. Although this remains difficult to quantify, it makes them feel good about their choice of buildings. There is mounting evidence that tenants are willing to pay a green premium over market rents.

The best way to justify, implement, and embrace change is to regard it as improvement. When property owners consider the multiple advantages of green processes, they need to include the good they do for the environment and their wallets. Better, greener processes should benefit current owners here. Not only will owners lower their current operating costs, but also improve their exit prices down the road. One clear aspect of real estate that future purchasers will investigate is how much a building costs to run. A less clear aspect of real estate value that purchasers look at is how green a building is and what steps management has taken to reduce the carbon footprint. Although difficult to measure, the panache associated with being green translates indirectly to the bottom line. People pay up for and buy more quickly into green property.

This seems a fitting topic as we wind down Earth Month- going green for all the right reasons. The owners who emerge first and best from this market will be the ones who have listened to the market, offer what people want and manage their properties best. As commercial and residential vacancies climb and late payments age, the importance of controlling what you can for your property remains paramount. When your actions can help the planet and line your wallet, so much the better.

Tips for Renters

Midtown West: the destination for non-doorman units. Midtown West has long been a neighborhood known for a central location and good value, but that value has gotten even better. With non-doorman units falling over 3% this month, apartments in this area have become an even better bargain. Non-doorman studios are now the lowest priced units, with the exception of Harlem, at $1,670.

Clear choice: LES. If you’re looking for a one-bedroom apartment with service, forget the rest of Manhattan, renters should be combing the LES for deals. One-bedroom units are currently averaging $2,547 – over $450 cheaper than any other central Manhattan location.

Safety, security and service. Battery Park City prices have continued to fall from their heights of last spring and summer. Units in this area are down an average of 14% from their peaks, making them an excellent value for those looking for service and a quieter location.

Rent De-Regulation Costs Increase- The NY Bill Is a Monster Sans Teeth

It’s no secret that evicting non-primary tenants can be arduous, time consuming, expensive and fruitless. Now the government is trying to dissuade landlords from even trying. A bill is now pending before the NY state legislature, (A00473 see below) which would award court costs and punitive damages to tenants who successfully defend against their eviction (and against the ending of rent regulation for that unit) based on non-primary residence. A form of this bill passed the assembly on 06/24/2008.

Although this bill might appear to have teeth, really it’s all gums. Do the math from a landlord’s perspective with me:

• A lease demands $500 rent each month for an apartment that would rent for $1200 to $3600 on the open market. Three times the rent would be a $1500 penalty
• The tenant uses free legal aid or a mom and pop law firm for a maximum of 10 hours at $250/hour. This totals $2500
• Penalty losses would equal roughly $4000. The value of the building on a conservative 5x rent roll would increase by a minimum $42,000 (5*$700*12 months), alternatively, the increased rent roll of $8,400 easily justifies the risk.
• The landlord’s legal expenses also need to be considered.

For the long-term, well capitalized landlord, the decision to deregulate remains a no brainer.

There are many ways to prove a resident is not a primary tenant. Video surveillance is one. It’s not enough to show that the primary doesn’t come home for months on end. A landlord needs to show that someone else does live in the apartment in question and that the primary tenant live elsewhere. These aren’t easy to do. Secure Watch can help. They are experts at assisting landlords in proving who lives where.

Another method is to rekey the building. That’s simply changing the front locks to use a multi-lock or other hard to duplicate key system. Only primary tenants and immediate family get keys. Primary tenants who show up to housing court without keys to their ‘home’ can look pretty foolish in front of a judge.

There are more ways than these to prove non-residence and more ways than non-residence to get an unwanted tenant out. A good property management firm is an important part of any successful suit and is aware of what happens in its buildings.

Foreign Investors, Local Property Managers

Property management for foreign investors requires better technology and more trust than managing for local owners. When problems arise, as they surely will, remote owners need to know that managers will handle the situation completely with no supervision and little input.