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How our property managers helped our New Zealand Customer generate Rs.9.6lakhs rental income

Overview of Property Management Case Study

This post highlights the problems and our property maintenance and rental income generation solutions for one of our NRI client.

About the Client

The NRI client lives in New Zealand and has a property in Gurgaon – India. Since he lives away from his property, therefore, it became next to impossible for him to travel to India frequently to address the property concerns. Hence, the client decided to hire a property maintenance and rent management company in Gurgaon to fulfill his requirements.

Property: the client owns a Penthouse of 5400 Sq ft with 4 Bedrooms on a top floor in one of the posh locations of Gurgaon.

Problems Faced by the New Zealand Client

The client bought the property 10 years back from now. And at the time of purchase he invested a generous amount of INR 30 lakhs on the renovation and upkeep of the house. The client equipped the house with latest and superlative amenities, appliances and furniture. So that whenever he and his family came to India, they’d be comfortable in their stay.

The maintenance of the house was given to a local person/acquaintance, who was supposed to take care of the property while the owners were abroad.

Unfortunately, the person in-charge for maintenance only did cleaning ignoring all the concerned tasks of property maintenance. This resulted in poor condition of the fittings, appliances, furniture etc in the penthouse.

And when the client decided to generate some rental income from the property, it was not in the shape to hire tenants. This came as a shock to the client who was trusting the local acquaintance and was hoping to save some rental income for his future plans.

House Condition when the client contacted LuXia’s property managers

When Luxia was given the charge of the house for maintenance, our property managers found the house in a very poor condition.

Bathroom fitting were rusted and old , rubber was falling off from the window blinds, Jacuzzi was not working , A/Cs were not working or cooling. Additionally, the kitchen appliances like chimney, hub, oven etc were also not functioning properly.

All in all the house was not maintained per the standards it should have been over the years.

LuXia’s Solutions for Property Maintenance and Rental Income generation

Property Maintenance

Just as the client hired us for using our property management services for NRI, our team was on it for the maintenance tasks. With our expert in-house professionals like carpenter, plumbers, electricians, appliance technicians (for washing machine, dryer , chimney/hob  etc)  we got everything rectified and thoroughly cleaned.

Our team ensured that the maintenance work was done at economic prices, that too well within the pre-committed timeline.

With our maintenance team’s efforts the house was completely transformed from an unused, unkept house; to a modern luxurious apartment.

We gave a live tour of the house to the NRI owner over video conference. And, he was pleasantly surprised with the transformed look of his house. He was very happy that he did not have to spend on the travel expense to maintain his property in India.

Assured Renting

Now, since the house is very well maintained, so now is the time for the house to earn money from a previous dead investment of 10 years.

Therefore, LuXia engaged with top corporate companies and established verified professionals to get our New Zealand client suitable tenant.

From the various prospect tenants, we screened the details of a corporate client who wanted to use this penthouse as their company guesthouse.

LuXia got the deal finalized between the client and the corporate client with a handsome rental of INR 80,000. Our property management company handled all the verification and documentations before handing the keys to the tenant.

This is how we helped our NRI client with our property maintenance services and rent management services to generate a high return on investment.

Get in touch

Gain benefits, and save your time and money by hiring our residential property management services. All you need to do is get in touch with our NRI property management company in Delhi NCR and we’ll take care of all your property requirements.

contact@theluxia.com |   +91 9810505543

NRI Property Management – Australian Customer Case Study

Overview

The case study details the problems and our solutions for a NRI customer of LuXia LLC. It shares what services the client used and how we helped the client to save money and time.

Customer Details

The client is based in Australia and has a property in Gurgaon (Delhi, India). For this reason, the client has a limitation of not being able to travel to India frequently to fulfill the the various needs of his property. As this would cost him quite a lot in terms of money and time.

Property : the client has a 1900 sq ft  3 BHK  Apartment with Gurgaon’s top builder.

Client’s Requirements

The client was looking for a NRI property management company in Delhi NCR – India to cater to his end-to-end property management requirements. He was facing issues with the builder he had booked his property. Hence, needed experienced property managers who could handle the legal matters, interior designing, rent management and overall property maintenance; so that he does not have to fly to India to get it sorted.

He needed the results to be fast as he was losing the money he invested since the property builder was delaying the possession. And he was not able to get the expected returns on investment by starting with the rent cycle.

Here’s what he needed from a NRI property management firm in India.

Pre-possession requirements:

  • The client wanted the property managers to fastrack his property’s possession since the time promised by the builder had already surpassed. And the builder was not honouring his commitment.
  • To get the registration done for his property without having to travel to India.

Post-possession requirements:

  • To get the interior designing done of the property.
  • To find a tenant and get the property on rent so that the property is able to generate rental income for the client.

How LuXia’s Gurgaon team helped the client

Pre-possession and registration of the property without the need of the NRI owner to travel to India

LuXia saved the time, effort and money of our Australian client by managing their property from end-to-end, and also handling their legal matters. We further benefited our client by giving them complete assurance of his property management which gave him peace of mind .

The client did not have to travel to India to get the matters sorted as LuXia’s team was on ground on their behalf, completing all that was required from the client.

Just as the client got in touch with LuXia’s property managers in Gurgaon for the pre-possession requirements, our team was on toes to help the client. Our in-house legal team worked with the builder to get the possession of the property, without having to call the NRI owner from Australia.

Along with this, team LuXia also got the registration done of the client’s property without the client having to travel to India which normally can be quite challenging for an NRI.

LuXia saved multiple trips of the client to India which could have costed him quite big in terms of his valuable time and money to get this resolved. Our property managers in Gurgaon made the possession and registration process seamless and efficient for the client.

Interior Designing

After the registration of the property, the client wanted to get the interior designing done so that he is able to generate rental income.

Hence, LuXia’s in-house interior team got elegant designing done of the complete house right from living room, to bedroom, kitchen, bathroom etc. Our interior designers maintained the aesthetics and functionality of the house just as our client’s demand.

Tenant Screening & Rent Management

Finally, LuXia started with the marketing of the property through various channels to find an appropriate tenant for the client’s property. From the multiple tenant applications, LuXia chose the one suitable tenant after careful screening.

Our NRI property management team also took care of the police verification of the tenant which is a mandate before keeping a tenant in India. We also shared the real-time online portal for landlords with our client so that he can keep a track of the monthly rent and other important information related to the property.

LuXia’s value-added services that made our NRI client smile!

  • Guaranteed Assurance – all our rental management services come with an assurance of maximum Return of Investment and peace of mind.
  • Dedicated Property Manager – the client got personal attention by a single point of contact for all their property related concerns.
  • Law & Regulations Compliant Rental Property – we made sure that landlords property is compliant with the property laws and landlord tenant laws in India.

Get in touch

You too can save a lot of your time and money and get high Return on Investment (ROI) on your property. All you need to do is get in touch with our NRI property management company in Delhi NCR and we’ll handle all your property requirements.

contact@theluxia.com |   +91 9810505543

Renting a house through a property management company increases ROI for NRI homeowners

The property owners are perplexed between managing their rental property on their own or hiring a property manager for the management.

However, some home-owners can manage the rental property for a single family on their own. But, NRI property owners are best advised to use professional property management services for better ROI.

While property management through professionals can be beneficial to all, but here are some notable benefits for NRI property owners.

Time Saving for NRI homeowners

Non-Resident Indian (NRI) property owners may face extreme difficulty when they try to manage the property on their own. Additionally, they may even incur heavy loss in terms of cost if even a small thing goes wrong.

It becomes almost impossible and expensive for the NRI homeowners to travel every now and then to manage their property in India. Hence, the best and worthwhile solution is to hire a property management company in India and leave all the registration (pre and post), interior designing, tenant acquisition and property management bothers to them.

As they say, “Time is money!”, so, as NRI landlords can save a lot of their valuable time, they can use it to add value to their more important and regular tasks.

Improved ROI for NRIs

The main reason for NRIs to rent their property in India is to keep the cash flow going and make some extra money for investment, or retirement savings or to cover mortgage cost.

Hence, the NRI property owners look forward to an increased return of interest for their property in India. And the most promising way is to reach out to a property management company in India and let the professionals make way for better results for you.

Since one of the tasks of property managers is to maintain your property in the best health, hence you shake hands with a lot of benefits including:

  • The improved ROI path starts right from the travel cost. Since the property managers manage their property in India, hence the NRI owners incur no/minimum travel cost. So, low expense, more ROI.
  • The property managers make regular timely visits to the rental property to check the overall health of the rental and to inspect the overall functionality of the tenants. Therefore, even if the tenant fails to notify of any damage in the property the property manager assigned to your property can easily locate it early and fix it without further damage at a competitive price.
  • Since a property management company has either in house maintenance staff or has contacts with local vendors with whom they regular work. So, the cost at which a professional management company fixes the damages is quite low in comparison to price quoted by direct vendor.
  • After you have finalized a property management company in Delhi, the vacancy period for your rental property gets very low. This means regular rental income without any monthly loss. This is because the property management companies acquire tenants only after careful screening process.
  • A property management company like LuXia LLP, has a real-time online portal for landlords. This way the NRI landlords can log in to their account and track all the maintenance logs, rent receipts and other important documents from anyplace with an active internet connection.

All the above benefits collectively add up to increase the ROI of the rental property for NRI homeowners who have their rental property in India.

Better implementation of landlord-tenant jurisdiction

One lawsuit against NRI landlords can wipe off the profits they made in years. Hence the understanding of the landlord-tenant laws as per the governing jurisdiction is crucial.

If out of convenience or trust issues an NRI landlord decides to let their friend or relative manage their property in India, then it can hurt them badly in numerous ways.

For instance, vacancy for a long time, misleading information about rent, maintenance mishaps and most importantly loss of money when a tenant files a false lawsuit against the landlord and due to initial negligence or ignorance the NRI landlord has to bear heavy loss.

Since, property management companies in Delhi NCR have a better understanding of tenant-landlord laws as they have been managing the rental properties for several years, therefore the property managers can help you save from false lawsuits by tenants. Thereby saving your precious time and money.

Bottom-line

Renting a house through a property management company is an excellent choice for NRI property owners who are looking to put their property on rent. It not only saves you time and money but also increases your ROI.

Get in touch with our property management company in Delhi to manage your rental property.

contact@theluxia.com |   +91 9810505543

How to set the perfect rent for your residential rental property?

As landlords or property owners the most challenging part while renting out their property is to decide the right rent amount.

When the NRI landlords or other property owners decide to rent out property, they aim to:

  • Cover property mortgage, or
  • Cover taxes. Or
  • Cover maintenance costs, or
  • Save money for their retirement, or
  • To maintain positive cash flow.

Basically, the aim is to make some profit by renting your property to tenants.

But again, the problem hinges on the question: what is the perfect rent for a residential rental property for landlords.

If the landlords set the rental price too low then they lose out on profit. And if they set the price too high then there are very good chances that the rental property remains vacant for a very long time.

In fact, if the rental price is high then even if the property gets occupied but as soon as the tenants find a similar place at cheaper price, they may vacate it. Resulting in revenue loss.

Landlords are mostly drawn towards increasing the rent price in order to capitalize on the cash flow, but that approach can backfire. A high rent amount could push away prospective tenants. Especially if it doesn’t match with the neighbourhood leading to the disappointing vacancies.

If you lose on tenants for even a month, your profits will drop.

Vacancy is the top reason landlords lose money on rentals, so make sure you set the rent of your property competitively.

Factors that influence rental pricing

Major Factors

  1. Joint-family or single family or single person
  2. Number of rooms
  3. Area of the property
  4. Amenities
  5. Location and proximity to schools, malls etc
  6. Duration of lease
  7. Pet friendly
  8. Safety

Minor Factors

  1. Laundry facility
  2. Power backup
  3. Furnished/Unfurnished
  4. Lease clauses
  5. Cleanliness
  6. Parking space
  7. Garden
  8. Neighbourhood

Here are a few tips to nail the rental price equation and gain maximum profits.

Rental rate

The essential thumb rule of setting the rental rate is:

Rental Price = 2.5-3.5% of the market value of property

For example, if a property is valued at Rs. 40 lakhs, then it’s rental price will range between Rs 10,000 to Rs 14,000 per month.

Having said that, the estimation may vary depending on the demand and supply equation. If a property is in high demand then the rental price can go up to 3.5%. But if the demand of the property is low then the rental rate stays at 2.5% of the total property value.

Study the competition

When you are trying to set the right rental price for your property then the first thing should be to study the comparable. This includes considering the market rate for similar properties in the same area as yours. The price may vary depending on:

  • Number of Rooms – higher the number higher the rent
  • Number of members as prospect tenants – rental price for single families will usually be higher than for joint families
  • Age of the property – rental price can go up if the construction of your property is new.

How to study the competition market

There are various ways to study how the property rentals vary in your competition market, some of them are:

  • Newspaper and Online Ads – Websites like magicbricks.com, 99acres.com etc can give you insights about the property for rent in your area. Likewise, local newspapers also run ads for property on rent. All you have to do is keep an eye on the flats that get rented fast, those that decrease their prices and those that have been listed for long.
  • Ask the landlord – You can even ask the landlords directly for the rental details and compare them with yours.
  • Get a property management company’s opinionnothing beats the opinion of professional property managers. They will guide and even manage the complete rental pricing, tenant acquisition and rent management process.

Adjust the rental price as per the amenities

The landlords should not set a standard price for the properties. The price should vary depending on the amenities and how desirable the property is.

Set the rent depending on:

Property essentials

An apartment with an attractive view, updated appliances, well maintained floor and ceiling, bigger space, extra storage facility, balcony and windows gains more attention from prospect tenant.

Apart from these points if your property is in a multi-storey building then higher the floor, higher the rent.

The only exception to this is if the building has 4-5 floors without lift, then as you go high the landlord will have to decrease the rent.

 Market value of the property

Market value determines the current value of a property with respect to the core factors. There are many elements that may affect your property’s market value; like an infrastructural development.

For example, the development of a metro link, a flyover, or a school can positively increase the market value of your property. But, the development of a dumping ground near your property can decrease its market worth.

Thus, it is crucial to identify the current market value of your property to correctly set the rent. If you face some difficulties in quoting the correct property worth, then take help from property maintenance services provider in your area to know the exact cost of your property.

Existing rental rate

Real estate advisors believe that it is important for the landlords to consider the rental price charged by other landlords in your area. And make sure that the rent you charge for your property is in sync with the existing rental price for similar property in your area.

Too much difference between the existing rental price in your area and the rental you ‘demand” can dissuade the prospect tenants and move them to other low-priced options.

Understand the regular cost of mortgage, taxes, repair and maintenance which you have to pay while the property is vacant and appropriately decide upon the rental rate.

Change the rent as per the evaluations

A very crucial understanding for the landlords is that they can/should change the rent amount as per the assessments attached to the property.

Ideally the homeowners must re-evaluate the rental price after every year or at every lease expiration to gain maximum ROI. As landlords your objective should be to increase the rental price as much as possible over time without losing the tenant as vacancy can cost you time and money.

“Lower the rental prices if you get few calls/visits on advertised property. On the contrary, increase the rental prices if you receive many calls/visits on your property.”

If you have any difficulty in setting the rental price for your property then get in touch with our property managers and they’ll take care of the entire process; saving you a lot of time and cost.

contact@theluxia.com |   +91 9810505543

What factors to consider to buy residential rental property for investment?

Are you looking to invest in a residential rental property? As much as the profit prospects of the investment are quite high. But a little diligence and research is appreciated from the owners before making the purchase.

Real estate market is a tough to crack; hence the buyers and sellers are advised to come prepared for the dealing or your one mistake can wipe-out your returns.

Here are the 10 most significant features to consider while buying a residential rental property.

Top 10 features to consider when searching for a profitable residential rental property

1. Study the neighborhood

Do not neglect the neighborhood in which you plan to buy your rental property. This is because you get to know a great deal about the types of tenants acquiring your property and your property’s vacancy rate.

For instance, if you buy a property near a school or a university, then there are very bright chances that college students will take over as potential tenants and you may have to deal with vacancies every year.

2. Calculate property taxes

Property taxes tend to differ widely across your target area. So, you must be cognizant of how much property tax you will be paying to them. Although high property taxes are not a bad thing in a goof neighborhood which attracts long-term tenants. But some second-rate places too charge high taxes, which is not a profitable decision to make.

You can discuss the taxes with your property management company or he municipality’s assessment officer or you can even talk to other homeowners in the society.

3. Schools in nearby location

The value of properties which have reputed schools in their nighborhood is quite high. Hence you must consider whether or not the society has a good school in the localities.

Having a good school in nearby location ups the value of any residential property, both in term of monthly rent and also when you plan to sell it in future for excellent returns.

4. Safety arrangements of the area

In today’s world or even otherwise safety is the priority for almost all. Just check the arrangements made by the society to fix the crimes. The very basic is to have a CCTV camera installed and a guard to monitor the premises.

Apart from this also check with the local police for the crime statistics in the locality. Also check the rates for vandalism, serious crimes, and minor crimes, and note if criminal activity is decreasing or increasing over time.

5. Job Place

Locations which have increasing employment opportunities are tend to attract more tenants. It is an excellent idea to invest in a property which is in a location not far from companies’ hub location.

Having said that, it is also important to keep in mind that while a good business increases a property’s value, a not-so-good business in locality may have the negative impact and bring down the property prices.

6. General amenities

Take a tour of the neighborhood and check out the local markets, kid’s parks, eateries, gyms, public transportation and all the other benefits that attract renters.

7. Future developments and projects

The local municipal department has all the information about new ongoing and projected developments in the area.

If you see major constructions in the vicinity of your prospect rental property, then it is most likely a good growth area. Pay attention to any new developments that could cause a drop in the price of surrounding properties.

8. Quantity of listings and vacancies

If an area has an oddly high number of listings, then it signals two things – either it is a routine seasonal cycle or a locality is decaying.

As a real estate buyer your job is to find out which of the two signals is rights. In either scenario, high vacancy compels the landlords to lower rents so as to attract tenants. Whereas, lower vacancy lets landlords to increase rental prices.

9. Setting the right rent

Rental income is what you look for the most which buying a residential rental property. Hence, you need to enquire about the average rent rate in your prospect area.

Just ensure that any property you consider to buy returns you enough to take care of your mortgage payment, taxes, and other regular expenses. Research the locality thoroughly and calculate its position in the coming years.

10. Natural Disasters

The returns you get from your rental property are not inclusive of the insurance you buy for your home. Hence be very careful in choosing the area to buy your rental property.

Do not invest in an area prone to flooding or any other natural disaster to save your rental income by heaps.

The Bottom Line

You may find a lot of properties for investment in the city of your choice. But before finalizing your rental property you have to do your due diligence and a lot of footwork to get the max returns on your rental property.

This may seem quite overwhelming, but you can always use the help of professional property managers in your area.

If you are looking to buy a property in Delhi NCR then our property management services in Delhi NCR will be very helpful in the entire process.

Get in touch now!

contact@theluxia.com |   +91 9810505543

Why is Self-Managing of Property not beneficial for homeowners?

Do you find yourself caught-up in all the legal paperwork?

Does amateur suggestions from relatives, friends and casual legal consultants backfire?

Do you often face issues and violations that are unfair or unforeseen?

Do you feel you are not getting the expected ROI from your property?

Are you spending more on traveling to sort out the tenant issues?

If the answers to all the above questions are YES, then you are most likely involved in self-managing of your property. While it may seem comforting and inexpensive in the beginning.

But it costs a lot; both in terms of money and time.

More importantly its pivotal for NRI homeowners and homeowners who live away from their properties to understand that:

“It doesn’t just take you—it takes a team for property management!”

If self-managing homeowners or property managers are not proficient in the property management, tenant management and rent management then it could lead to catastrophe in terms of costs and more.

“One wrong decision can cost more than quite a few months of management fees. “

If you own a small or family owned property then there are very bright chances of you getting embroiled in the onslaught of the changing tenant-landlord rules and regulations.

Even with best intentions, family members, relatives, friends and inexperienced legal advisers are inept to effectively provide rightest advice because of less knowledge, inexperience, or having not enough time to walk with the ever-changing laws.

How can professional property managers help?

A professional property manager company has a compliance department which is experienced in handling and monitoring complaints, violations and warnings so that nothing goes unattended or unnoticed.

The property managers are well equipped with knowledge and experience to handle violations, property maintenance, rent management and other associated services.

As opposed to self-managed properties, a property management company can help you

  • avoid tiring concerns,
  • stay compliant with tenant-landlord regulations,
  • prevents loss of rent due to tenant vacancy, and many other benefits.

Moreover, with a competent property manager on your side you will be able to save a huge amount time and money. The entire management of property for NRIs particularly is tricky to maneuver successfully with constructive results, but with property management services, it gets seamless and efficient.

How you can save money by using property management services

A professional property management company never stops searching for ways they save money or cut cost for the landlord. Hence, as opposed to the myth of high-cost management services, by hiring a property manager you cave a lot of cost on managing your property.

Here’s a case study to explain more.

A property management company does detailed analysis to prepare accurate budgets for their clients and take measures to monitor them closely. Although many expenses are fixed but for anything they can regulate, they are proactive, diligent and insistent in doing so.

A property manager puts in the time and effort to make timely visits to the property to ensure the health of the property. This also wears-off out-of-the-hand expenses for delayed maintenance. This means – another step towards saving unnecessary money.

Tenant retention

Retaining a tenant is crucial for any landlord. A good property management company will bring in good market rate tenants only after careful screening process. They will also maintain tenant retention to shun downtime and the extra cost of painting and regular upgrades.

Minimizing tenant vacancy is something a self-managed property misses out on. This is because mostly the property owners who manage their property themselves keep random tenant, without knowing their background and screening is just off the plate.

Hence loss of time, money and efforts.

Therefore,

Hiring a property management company is your best bet to manage your property contrary to self-management of property. You save a lot of your valuable time and your hard-earned money by utilizing property management services.

With LuXia LLP managing your property you can be rest assured of getting the best services pertaining to:

Get started for outstanding property management services.

Here’s how you can find a good property management company near you.

contact@theluxia.com |    +91 9810505543

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