After two years rent in Manhattan has finally dropped. In March the median rental price in Manhattan dropped by 2.8% compared to the same time last year (source). In addition, landlords in Manhattan are offering more concessions to try to attract tenants including a month of free rent. Landlords and management companies at the more expensive segment of Manhattan’s rental market are seeing the biggest loss in rent revenue with a 3.5% drop in rental price. In addition, Manhattan apartment vacancies are up .5% from last year.
Part of the reason for the decline in Manhattan rental prices according to Jonathan Miller, CEO of appraiser firm Miller Samuel is that there is a disconnect between the type of housing being offered in Manhattan and individual’s salaries. However, New York City landlords should not get very anxious about a long term drop in rental prices as most experts believe the decline in Manhattan rental prices will not continue. In addition, the decrease in demand in Manhattan has led to a tremendous increase in demand in other New York City boroughs. For example, in Brooklyn the price of a new lease grew 37% in March with the median rent increasing by 2.7%.
It is important that landlords and property managers across the United States learn from the New York City rental market and hypothesize whether similar market influences could affect their rental properties. One can see that even in one of the wealthiest and highly valued areas in the country, rent increases have at least temporarily decreased rental demand to the point where vacancies are increasing and rent is dropping.
With the uncertainty in the rental market, you need to have certainty in your property management system. Since every dollar counts you cannot afford to make mistakes, waste time trying to figure out how to stay organized with a paper system or attempt to figure out an overly complicated property management system. Realty Information System’s property management software has several features that enable landlords and property managers to stay organized and efficient.This post is provided by RISSOFT Residential and Commercial Property Management Software, specializing in innovative and cutting-edge property management software for all 50 states. Request a demo or contact us today to receive more information.
Disclaimer: The information provided in this post in not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.