How FirstService Residential Expertly Handles the Management Transition Process

350px-New_York_City_Multifamily_Investment_FirstService_Residential_shutterstock_1093445573.jpgAs different sectors of New York City’s economy recover from the COVID-19 pandemic, strong signs of life are emerging in multifamily rental property investment. Those signs are especially encouraging considering that individual and institutional investors have also been weighing the implications of the 2019 Housing Stability and Tenant Protection Act (HSTPA). The increased level of activity in Q2 2021 for multifamily residential rental property transactions should be welcome news to those in the real estate community and the city at large. It suggests that private and institutional investors are betting on the city getting back to normal sooner rather than later. The return of in-class schooling and the ongoing reopening of offices and workspaces across the city are further indicators of this improved outlook.
While overall market prospects look promising, new multifamily rental property investors will find that ownership comes with many nuanced challenges. Property owners and investors will need to adapt quickly to this evolving landscape in order to succeed. As New York City’s leading multifamily rental property management company and a consultant to developers building multifamily rental properties across the city, FirstService Residential is well positioned to help new private and institutional owners navigate these challenges. We provide effective property management services tailored to the modern renter and owner. For 40 years, we have worked to maximize occupancy, streamline operations, and significantly enhance return on investment.

What are the numbers saying about the multifamily market?

When looking at multifamily assets, data from Q2 2021 shows increases in the number of transactions and properties—by 23% and 44%, respectively—compared to the previous quarter. Additionally, several high-priced deals that surpassed $20 million in value drove a 158% increase in total sales from Q1 2021. In terms of location, transactions in Manhattan made up 71% of total sales throughout the city. The majority of those sales consisted of market-rate properties.

What types of properties are attracting which investors?

Along with sales and dollar volume, it can be helpful to look at the types of multifamily rental properties being sold and the types of investors purchasing them. In Manhattan, the trend for institutional investors in Q2 2021 has been towards larger market-rate properties with higher occupancy rates. This pattern holds for properties at different price points in terms of price-per-square-foot.
Smaller residential and mixed-use properties continue to attract a majority of investors – most significantly properties with less than 10 units. In fact, private and institutional investing in these properties increased 161% year-over-year.

How can property management professionals help multifamily owners with new assets? 

Trends indicate that professionally-managed properties are the product archetype that investors expect will attract renters returning to the city. Therefore, private and institutional owners wanting to maximize occupancy and boost return on investment for newly acquired assets should consider partnering with a modern, full-service property management company like FirstService Residential. 
The knowledge and local expertise of an experienced property manager can be invaluable to owners who have just purchased their first building as well as those with established portfolios.
Modern renters are seeking the experience of a luxury condominium without the hassle of ownership. With 40 years of experience managing rental properties, in addition to hundreds of high-end cooperatives and condominiums in New York City, only FirstService Residential has the experience to satisfy those needs.

Tenants expect, and FirstService Residential can deliver:

  • Online conveniences such as rent payments and maintenance requests
  • Accessible, genuinely helpful staff interactions
  • 24/7/365 customer care center with live support

Owners expect, and FirstService Residential can deliver:

  • Continuous investments in new technologies, local expertise, talent, and proprietary systems help minimize vacancies in a volatile market,
  • Assistance navigating strict rent laws like the HSTPA
  • Proactive compliance department to mitigate code violations and ensure annual rent registration
  • Ongoing preventive maintenance programs to ensure efficient building operations
  • Dedicated financial analyst to optimize the budget
  • Suite of marketing resources for branding strategy and tenant outreach and retention.  

FirstService Residential's Multifamily Rental Division: Who We Are

Across the five boroughs, FirstService Residential’s Multifamily Rental Division offers leading institutions, individual investors, and family-owned portfolios and development companies modern property management services for their buildings. Our services are built on a foundation of national resources – and our collective experience managing 8,500 properties and 1.7 million residential units across North America.
As the top residential property management company in the New York City area, FirstService Residential manages more than 130 multifamily rental properties comprising roughly 12,000 apartments and 30,000 tenants. This is in addition to the more than 500 condo and co-op buildings we manage, which translates to more than 70,000 apartments. Owners trust our management teams to protect asset value, provide best-in-class expertise, and optimize building and staff performance.
The multifamily market in New York City is complex and continually evolving. New investors and owners will need to find ways to adapt to the ongoing effects of COVID-19 and the long-term implications of the HSTPA. With 40 years of local New York City experience, backed by the national resources of North America’s leading residential management company, FirstService Residential’s Multifamily Rental Division is a benchmark in the industry and uniquely positioned to help private and institutional owners with every aspect of rental property management and new development consulting.

Friday October 22, 2021