Pied-a-Terre or Investment Property in Manhattan?
When you purchase your Manhattan dream getaway pad, you have a few choices to consider: either move in as a full time resident, keep it as a pied-a-terre or rent it out short or long term. The short term renting option may increase rental yields and provide flexibility to use your condo when you want. Keep in mind there is a minimum 30 days rental in NYC but some buildings do not even allow short-term rentals as a building policy. When renting on a short-term basis, it is important to check the rules that apply to your building. Whether renting your condo for a short or long term, the process will be the same. The application and the board package has to go through management and the Condo Board.
There is strong demand for rental apartments in New York City, and Manhattan comes at a premium. In order to rent an apartment in Manhattan a tenant needs an annual salary 40 times the monthly rent. This criteria results in good credit quality individuals where there is usually little management involved. If the potential tenants are not making 40 times the monthly rent, either they can get a local guarantor who makes 80 times or apply for Insurgent, a lease guaranty program, underwriting and qualifying the tenants who cannot otherwise lease an apartment.
In most situations leasing your apartment in NYC, all that is needed is a reliable and capable real estate brokers who will take care of the advertising, showing the unit, collecting applications, screening applicants, and sending the application to the management company for Board approval before executing leases and arranging for tenants to move in. Plumbing, heating, and structural issues can be handled by the building management. If the building is not a new development and is not under warranty, the appliances, cabinets, or flooring needs to be taken care of by the owner. Having a dependable agent who continues with after sales service will alleviate the worry of managing your condo remotely.