Alex Meskouris is the owner and operator of AMPM Property Group, the fastest growing property management company in Manhattan, New York. At AMPM, the focus is on client satisfaction and asset protection. In the following article, Meskouris discusses the regulations of property management companies in New York, and how these regulations help protect renters, improving the rental experience in the Empire State.
It’s the duty of a property management company to carry out the daily operations of running a building, including marketing the property, collecting rent, handling repairs and maintenance, and dealing with tenant issues. However, under New York state law, property management companies are beholden to a certain set of regulations that protect residents and guarantee that managers act in their client’s best interests says Alex Meskouris of AMPM Property Group. Although New York has some of the most detailed realty regulations that effect builders, brokers, and commercial development companies, they help to create an ethical and friendly industry that benefits everyone involved.
They Must Obtain a Real Estate Broker’s License
In order to offer property management services, real estate brokers in New York must obtain a license from the state’s Department of State. In order to qualify for a broker’s license, an individual must be at least 20 years old, have a high school diploma or equivalent, and successfully complete a 75-hour real estate course approved by the state.
Additionally, Alex Meskouris states that brokers must pass a two-part examination administered by the Department of State. First, is a general real estate exam that covers topics like real estate law, ethics, and math. Second, is a broker’s exam, which focuses on more specific topics like real estate finance, investment, and appraisal.
After obtaining a license, brokers must complete continuing education requirements on an annual basis in order to maintain their license and stay up to date on industry changes. If a property manager fails to renew their license they may be fined or face charges for performing their duties without a license.
Property Managers Must Follow Fair Housing Laws
All property management companies in New York must follow federal and state fair housing laws, which prohibit discrimination in housing based on race, religion, national origin, gender, familial status, or disability. In addition to these protected characteristics, the New York State Human Rights Law also prohibits discrimination based on age, creed, sexual orientation, marital status, and military status says Alex Meskouris of AMPM Property Group.
These laws help to ensure that everyone has an equal opportunity to rent or purchase a home, regardless of their background. Property management companies that violate fair housing laws may be subject to penalties, including fines, damages, and attorneys’ fees.
Management Companies Must Comply with Security Deposit Laws
Under New York law, Alex Meskouris of AMPM Property Group says that security deposits are capped at one month’s rent for apartments that rent for less than $2,000 per month, and two months’ rent for apartments that rent for $2,000 or more per month. Property management companies must place security deposits in a separate, interest-bearing bank account, and must provide tenants with a written statement of the account information within 30 days of move-in.
Additionally, Alex Meskouris says that property management companies must return security deposits to tenants within 14 days of move-out, minus any damages that were incurred during the tenancy. If a property management company fails to comply with these security deposit laws, it may be subject to penalties, including damages of up to two times the amount of the security deposit, as well as attorneys’ fees.
By placing limits on security deposits, New York law helps to ensure that tenants have the money they need to move into their new home, while also protecting their rights when they move out according to Alex Meskouris of AMPM Property Group. Beyond security deposits, we must also discuss physical security and one way for management companies to keep their tenants safe is with Mul T Lock deadbolts.
Property Managers Must Maintain Accurate Records
Property management companies in New York are required to maintain accurate records of all financial transactions, including rent payments, security deposits, and expenses. These records must be kept for at least three years and must be made available to the owner of the property upon request. Additionally, property management companies must provide tenants with a written statement of all charges and fees within 30 days of move-in.
This statement must itemize all charges, including the amount of rent, the security deposit, and any other fees that may be due. Alex Meskouris of AMPM Property Group says that by requiring property management companies to keep accurate records, New York law helps to ensure that tenants are not overcharged and that their rights are protected in the event of a dispute.
The Takeaway
New York’s many regulations help to create a fair and ethical property management industry that benefits everyone involved. By requiring property management companies to obtain the proper brokers’ licensing, follow fair housing laws, and maintain accurate records, New York law helps to protect tenants and ensure that they are treated fairly.
