Why Responsible Property Managers Invest in Capital Improvements

Paul Salib received his master’s in real estate finance and investment from New York University (NYU). He holds an assistant adjunct professorial position at the New York University School of Professional Studies Schack Institute of Real Estate. Concurrently, Paul Salib serves as the managing partner of Castellan Real Estate Partners, a New York-based real estate investment firm he founded in 2009. With Mr. Salib at the helm, Castellan practices responsible property management. 

The first rule of responsible property management Castellon follows is to put tenant needs first. Acting responsibly as a property manager involves investing considerable capital into property-wide renovations and enhancements. Examples of capital improvements include new windows, boiler replacements, natural gas conversions, modern intercom systems, closed-circuit television (CCTV), and any other physical building upgrades that will improve the tenant's experience and increase a property's value and/or usability. 

Capital investments such as these often require significant outlays, but their effects eventually return to the business’ bottom line over time. Well maintained buildings ultimately require less money spent on maintenance, and are much more likely to appreciate in value in a rising real estate market.

Three Tips for Investing in New York Real Estate

Real estate investor Paul Salib serves as managing partner of Castellan Real Estate Partners, a firm he founded in New York City in 2006. In this capacity, Paul Salib pursues a broad range of debt and equity real estate transactions throughout New York and beyond. 

Since its early days, New York City has played host to one of the most diverse real estate markets in the world. Here are three tips to help you get started as a New York real estate investor:

1. Find the right location. It may be tempting to find an investment property in a well-established area, but these markets are often saturated from a development perspective. For this reason, many investors instead look toward neighborhoods with high potential for growth. 

2. Compare sales and rents. A comparison between the sale price of a property and average rents in the area may provide a nuanced look at the property’s value. Investors often look to buy low in a high-rent area, particularly if they plan to rent the property for an extended period of time. This advice applies to investment properties in any market, but New York’s high rent makes it especially important to consider. 

3. Maximize bedrooms. If investors plan to rent their investment properties, they should almost always try to maximize the number of bedrooms in the unit. Renters typically pay by the bedroom, regardless of how small the bedroom may be.