LuXia can help you save Rs. 40 lakhs!

Own a rental property? This case study can help you understand how our property managers at LuXia can help you save Rs. 40 lakhs!

How it all starts

An NRI customer owns a rental property in Delhi, India and decides to rent it. For this, he get in touch with the local real estate agents, friends and family members and ask for support.

Finally, finds a tenant for his rental property through a local real estate agent (who obviously took a hefty amount from both the sides).

The problem

Since the landlord rented the home through an unverified broker, therefore he did not look after the property’s maintenance, after renting it. And, the tenants too did not pay much attention to the cracks, leakage and wear-and-tear on the property as they were not going to stay for long.

As soon as the first tenants vacated the property within just 7 months, the brokers informed the owner about it. Further, the broker made up a scenario of finding new tenants.

But, the broker played with the owner’s trust by renting out the property to his acquaintance and quietly filling his pockets with the unauthorized rent.

The owner gets to know about this and had to make a rushed visit to India. He also had to involve police and the legal system to get the house vacated.

Result – Not only did this cost the owner in terms of money, but also cost him a lot of hassle in handling and settling the issues. Due to the negligence of the broker and the tenant a leakage in one of the water pipe grew big and caused damp walls. This further resulted in high loss of money in terms of monthly rent, brokerage fees, legal fees and the maintenance cost.

Cost incurred so far:

Rushed ticket cost – Rs. 1.5 lakh

Monthly rent loss for 1 year – Rs. 5 lakhs

Maintenance cost – Rs. 2.5 lakhs

Tickets cost to fly back home and return to India – Rs. 3 lakhs

Police and legal activities – Rs. 2 lakhs

The final loss

Due to the hassles of police and legal actions, the NRI owner gets fed up and decides to sell his property in distress. Hence making a sale loss of around Rs. 26 lakhs on his rental property.

Total loss – Rs. 40 lakhs

Hence, not only does he suffers financial loss, but also loses a rental property which he had bought for his retirement plans.

How can LuXia can help you save Rs. 40 lakhs

LuXia LLP offers property management services for NRI landlords, thereby helping them save time and money on their rental property.

Our property managers make sure we hire tenants only after proper screening to check on their backgrounds, tenure of their stay etc. We also prepare all the legal paperwork before leasing or renting the rental property to the tenant to ward-off any chances of treachery.

Apart from renting, we also take care of property maintenance by making timely visits to the property and fixing any issues that require attention. This way the NRI landlords need not make emergency visits to maintain their property and save lakhs of their hard earned money.

Another advantage of hiring our property management company is that we put in efforts to minimize the vacancy period so that the NRI landlords can enjoy the monthly rent coming their way.

We have a real-time client portal for our landlord clients. In this portal we share updates for rent collection, scheduled visits and other important updates. Hence, the landlord stays informed and updated about all the happenings on his rental property. Thus – no deceit.

Get in touch

Save your money and get high Return on Investment (ROI) by hiring our property mangers for your rental property in India.

contact@theluxia.com |   +91 9810505543

 

How do I find a good Property Management Company near me?

Considering the benefits of hiring a property management company, it is a great decision for landlords who stay away from their properties.

A good property manager makes certain that your tenants are happy and satisfied; that you receive a consistent rental cash flow, and that your property is properly maintained.

Therefore, look for the below attributes in a property management company to get high returns on your investment:

  • Robust tenant screening process
  • Solid rent payment collection
  • Timely inspections of your rental property
  • Follows a maintenance and repair policy

As a property owner, you will also need to consider a few more things like:

  • competitive property management fees,
  • excellent communication between you, your tenants and your property managers, and ,
  • proper documentation of all the paperwork of your residential rental property by your property manager.

If you are looking to hire a professional property management company near you, keep reading to know how to find one nearby that will achieve all of your property management requirements.

Finding a Property Management Company Near You

1. Look Online

The first and the trending way to to look for a local property management company is to type in “property management company near me” in Google. And you will have the results in front of you in less than a second.

After you have shortlisted the prospective property management companies near you from your search results, finalize your search with further investigation.

If the company has a website (which they should in today’s era of digitization) then take a look at it and see if it has these information:

  • A detailed list of landlord services they provide including, but not limited to: property registration, tenant screening, rent collection, maintenance schedules, financial reports and property inspections.
  • Arbitration policy and privacy policy for property owners and website users
  • General information regarding the company
  • Areas served by the property managers
  • An online portal for the landlords
  • Testimonials from existing property owners
  • Contact details (address, phone, email – all three)

You might think of the above information as very obvious. But many property management companies may not mention these on their website.

In fact, the way a company represents itself online, speaks volumes about it. A good property management company mentions all the possible information for the property owners. So as to give them a better insight and to help them make an informed decision.

Since the management company is transparent about their information and practices, hence, the property owners see them as a reliable investment.

Apart from the website, also check for any online reviews available for the company. You can do this by typing in the exact name of the company and look for any reviews on the leading websites. The reviews may be too negative or positive due to discrete situations. So, its better to take these with a grain of salt.

2. Get a Local Referral

You must be having friends, relatives or acquaintances in your circle with rental property in your local area. There are very good chances that some of them use property management services from a local company. And they can share honest, unbiased reviews of their experience with a management company.

Since the review comes from a referral whom you know personally, therefore, there is no chance of any hidden truths, or misleads.

People generally prefer asking referrals for home services, particularly in case of income properties. If a property manager has a bad reputation, the word about it will spread fast in the real estate circle of property owners and other industry professionals.

Likewise, property managers with exceptional work portfolio and good reputation will have clients coming their way by happy and satisfied referrals.

Bottom line is that reviews can be helpful. But nothing beats the trust gained from hiring a property manager referred from someone you know personally.

3. Check Out Local Ads

One of the task of a property management company is rental marketing. This means to handle the marketing and advertising of your rental property in order to find tenants for vacant properties.

This is a very convenient way to find local property managers.

Just look for the rent ads in your local newspaper or online classifieds. These resources are usually employed by local property management companies. So as to share that a rental property they manage is available for rent.

By following the advertisement trail you can shake hands with some best operational property management companies near you.

There’s another hidden advantage of looking in to local ads for finding a property management company in your local area. You get an idea of  how they advertise vacancies and whether you are impressed with their advertising skills.

4. Talk to Current Renters

In the real estate web, the chances of you knowing someone who lives in a rented apartment are quite high.

Just reach out to the tenants and ask them if they are in direct contact with the landlord for rent payment or for addressing any issue. Or a property management company is the point of contact for them.

The tenant will definitely share their honest experience with you about their property manager.

Bottom line

It’s not hard to find a property management company near you. But, to find the right one is crucial and challenging. Go for the one that has high working standards, competitive fee structure and a good reputation in the real estate community.

If you own rental property in India, LuXia LLP has all the attributes and necessities of an exceptional property management company.

With strong community bonds, a huge network of professional relationships, and a passion to manage your rental property at fair prices, we at LuXia work to provide you with the best experience. Right from the pre-registration complexities, to tenant screening  to managing the eviction process – we handle everything to make your real estate handling hassle-free.

Allow us to manage your rental property, keep your tenants happy and satisfied, and generate you the monthly rental income you’re looking for.

contact@theluxia.com |   +91 9810505543

 

The three scenarios deciding the need of property management services

As owners of rental properties you must be well aware of the fact that renting out real estate properties takes a lot of time. Particularly, if you have multiple properties then managing the tenants, rent cycle, maintenance etc. can be a tad overwhelming.

Although many landlords may start with managing their property on their own or by an employee or through a relative or friend. But, eventually, the whole process and the tenant concerns, get exhausting and baffling. The property management is even more strenuous when you have other important tasks to handle rather than managing your property. Or, when your property is in a different country or a different city.

So what does a Property Manager do exactly?

A Property Management Company maintains and manages your rental property end-to-end.

The property managers will work directly with your prospects and tenants, so as to save your time and worry over managing your rental.

Property management services include:

  • marketing your rentals,
  • tenant screening
  • complete legal documentation
  • rent collection
  • handling maintenance and repair issues,
  • responding to tenant complaints, and
  • tenant eviction

Moreover, a good property management company will bring along its know-how and experience to your property, thereby giving you the peace of mind that only comes when you know your investment/property is in good hands.

Finally, a property management company is an independent contractor. Therefore, you pass the troubles and perplexities of being an employer.

The three scenarios which define your need of a property manager

Below are the three scenarios which briefs some of the common situations. You can place yourself in either of the scenario to learn whether or not you need property management services.

Scenario 1 – When you definitely need a property manager

  • If you are an expat or a Non Resident Indian (NRI) and you have your rental property in your home country, then it is definitely important for you to hire a good property management company.
  • If you have multiple properties to manage, maintain and rent out. Because then you’d need a professional company who would manage your rental without any hassle.
  • When you do not have enough time on your hands to handle tenant concerns, rent management etc.

Scenario 2 – When you should consider hiring a property management company

  • If you expect to earn good returns from your real estate portfolio then using property management services is a good idea.
  • If you wish to increase your property value over time then a property manager can help you with this.
  • Also, if you are keen to save some extra money by spending less on repairs and maintenance work then hire a property manager. Since, they have contacts with local vendors, they can get the repair work done in comparatively lesser price.

Scenario 3 – When you don’t need a property manager

  • If you enjoy being a landlord and you have the time to manage your rental property efficiently.
  • If managing properties is your passion, and you have a hard time trusting third parties, then you should manage them directly.
  • And, if your property is located close to your current location then it makes sense if you’d like to manage your property all by yourself.

A property manager would still assist in your objective and remove all complexities of dealing with the tenants and managing your property. Basically, the choice is yours.

About LuXia LLP

LuXia LLP is a property management company in India dedicated to serve the NRI landlords and homeowners who live away from their rental property.

Get in touch with us to increase your property value and find the right tenant for your property.

contact@theluxia.com |   +91 9810505543

 

How can a Property Management Company help homeowners?

It is not debatable that owning a rental property is an awesome source of earning additional income. Having said that it becomes quite a task for the NRI homeowners to oversee property upkeep, maintenance and letting and marketing. This is where you can explore the benefits of hiring a property management company.

Professional and experienced property managers can add significant value to your property. This is the reason why many leading real estate investors recommend homeowners to use property management services.

Here are a few ways that a good property management company earns their keep:

1. Tenant Screening

Screening of tenants is like having a drawbridge and moat around your property. Although a good real estate property manager can help you evict a bad tenant of your property. But, not renting or leasing your property to a bad tenant is much more convenient and hassle-free.

By hiring a tenant through proper screening you make complete arrangements fora tenants who:

  • Pays rent on time
  • Stays longer
  • Put less wear and tear on your property
  • Creates/causes lesser issues

An experienced and professional property management services provider company screens thousands of applications on a regular basis. Therefore, they have the aptitude to quickly dig for the real facts about candidates and analyze the information for warning signs. Thereby, avoiding bad tenants, possibility of scams and lawsuits.

2. Less vacancy

Next in the benefits of hiring a property management company is to keep your property vacant for very less time. A professional rental management company knows how to get your home rented and keep it rented for long.

The company will handle everything right from determining the best rental price, preparing your property for rent, thorough marketing, tenant screening, rent management etc. to keep your property occupied for a longer time.

3. Longer Term Tenants

Every landlord wishes to rent their property to good tenants who’d stay for longer term.

Short-term tenants costs more than just money to the NRI homeowners who are looking for more return on investment. Some of the major disadvantages of renting your property to short-term tenants are:

  • lost rent,
  • cleaning expenses,
  • replacing locks,
  • repainting interiors,
  • making small repairs and last but not the least
  • advertising and tenant screening process costs.

Hence, it is quite evident that both time and money are saved with long-term tenants.

The best property managers plan and execute a good tenant retention policy. This is because they understand that an unhappy tenant is more likely to vacate a property sooner.

Hence, a good property management company puts in efforts and takes initiatives to make a tenant happy by keeping good communication, fast response to their issues and making quick repairs.

4. Act as the point of contact for tenant concerns

As an NRI landlord and otherwise also, it is not possible and convenient to answer all the concerns of your tenant over phone or by making personal visits. Hence, a property management company manages it for you.

A tenant can directly contact the dedicated property manager for any concerns related to the property. Therefore, the homeowner can breathe easy knowing that the property manager is there to attend all the issues of the tenant.

5. Market your rental

Property managers are proficient at rental marketing. They have experience in writing crisp rental ads and taking and posting high-quality photos on various sites (online and offline) .

In fact they also have local real estate understanding and which will help in setting up a fair rental price for your property. Hiring a property manager with marketing experience is an added advantage to help fill your property sooner and reduce the vacancy time.

6. Ensure rent is paid on time

Property management companies understand that consistent and timely rent collection is very crucial for homeowners who give their property on rent.

A property management company gives special attention to the rent cycle and also implement lease policies if the tenant is not paying the rents on time. Moreover, if a tenant consistently fails to pay their rent on time (or at all), a property manager will deal with the situation in the best capacity, and/or will issue an eviction notice if necessary.

7. Avoiding Legal Problems

If your property management company helps you avoid just one lawsuit, then it more than pays for the hiring cost.

You must be aware of the situations where one bad tenant raises severe legal and financial concerns. This is the reason why most of the experienced real estate consultants recommend hiring a property manager.

Because of the experience and also because it’s a part of a property manager’s job, they are more likely to know the laws much better than the NRI homeowners.

8. Save you money on maintenance and repair costs

Property managers are more likely to get discounts for regular maintenance services because they routinely work with a local service provider. Moreover, some property management companies employ an in-house maintenance staff to avoid the hassle of vendor availability.

Additionally, since the property managers make regular visits to the property for inspections, they can identify any maintenance issue which needs attention and fix it before it becomes big. This way the cost of emergency repair comes down by big numbers.

9. Distance between tenant and owner

At times tenants put the landlords in a situation where in the owner is expected to make decisions based on emotions. This is not ideal, because the tenant might just be making an excuse to not pay the rent. This can result in monetary loss for the homeowners.

However, a property management company is considered and treated as a professional entity. Therefore, tenants refrain from making fake excuses and pay the rent on time.

10.  Enjoying the benefits of rental property ownership without giving up personal freedom

Majority of people invest in real estate for a passive source of income or as a source of funding for a relaxed retirement.

With a reputable property management company, owners need not stress about their rental property’s maintenance or rent collection or any other concern. Hence, the owners can spend more time with their family or engage in any activity they were not able to explore due to added responsibility of managing the rental property.

11.  Increasing property value

As they say prevention is better than cure, so is with the health of a property. Preventative maintenance can increase the value of your property.

By attending to the maintenance and potential repairing problems early on prevents breakdowns which may lead to bigger and expensive repairs or even replacements.

A property manager ensures regular maintenance checks and inspections to make certain that everything works just as the way it should.

12. Assistance with taxes

Systematic record keeping allows efficient tracking of tax deductible expenses causing lower taxation.

A property management company can assist you in understanding the tax structure, so that you can claim the cash deductions and arrange for the necessary forms and documentation required to make those claims.

13. Handling Evictions

Property managers are well equipped with experience to handle tenant evictions. If required they even hire professional and experienced real estate lawyers to carry out the legal proceedings of tenant evictions.

What next?

Ready to take advantage of property management services? Get in touch with us to experience all the above benefits of hiring a property management company.

contact@theluxia.com |   +91 9810505543