Stepping in for Foreign Owners
Digested From “Stepping in for Foreign Apartment Owners”
New York Times (03/07/14) Wright, Christian L.
With the number of foreign investors on the rise in New York real estate, entrepreneur Dylan Pichulik identified a demand for management services that was not being met. Traditional management companies do represent absentee owners. However, they are not always equipped to deal with complicated tax issues, for example, and might not be readily available at 3 in the morning when a client calls from another time zone. That's why Pichulik launched XL Real Property Management in 2012 with a dozen clients. Today, the firm manages approximately 1,000 properties, ranging from a studio unit in Harlem that rents for $1,500 a month to an apartment on Central Park West that rents for $40,000 a month.
His employees all have backgrounds in real estate — from law to interior design — and speak various languages such as French, German, Italian, Japanese, Mandarin, Portuguese, Russian, and Spanish. XL charges a 5 percent fee of gross rent. For rents of more than $10,000 a month, it will negotiate the rate. The firm's clientele receives a detailed report on the 10th of every month. Once international clients see XL's reports and how efficient such investments can be, some even buy more apartments and contract with the firm to manage them.
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