Tag NRI property management

Dwindling stock markets amidst the recession is driving Real Estate to the center of investment portfolios. Yet, buying new property or owning many valuable properties might not be enough. Investors and property owners can take full advantage of the shift only with property managers that have foresight.

Often, the absentee owners misjudge the need for NRI property management. They make all the effort and overspend to manage their property but end up frustrated. Not only does their property lose value but, they also miss out on rental income without realizing it.

Professional property management can mean a sea change for your investment plans. Before we look at what is achievable by hiring a Property Management Company, let’s briefly understand what it is!

What is Property Management?

Imagine what would happen if your home lies in neglect while you are abroad. Its value would depreciate over time. Your property would be at the risk of being used or occupied illegally. It could be swallowed by property sharks. Finally, you would have to spend a lot of money for repairs and renovation when you take back charge.

In short, your property would become a liability of sorts. Property Management is meant to avoid all these and turn your home into a profitable investment! Moreover, it is intended to generate passive rental income besides ensuring gradual value appreciation.

By confiding your property in the safe hands of a property management company, you are ensured that it:

• Remains the top choice for tenants.
• Generates a steady income.
• Retains its value in the rental and resale market.
• Does not lag in style and comfort.
• Is in tune with the latest interior designing
• Undergoes maintenance regularly.

Over the years, property management companies have overtaken the role of traditional brokers in the rental market. In fact, they have added new dimensions to renting. There is little wonder that property management companies are judged by their rent management services.

Why is Rent Management so important?

Rent Management is tied intrinsically to the very logic of property management. It creates a win-win situation for both the property managers and the owners.

How?

Rent management is directed towards generating a regular flow of optimum rental income for the owners. A part of this income is invested in maintaining, repairing, renovating and interior designing so that the property remains in-demand. This also ensures that the property increases its value at a higher rate than it would have without being professionally managed. A fraction of the rental income forms the property manager’s fees.

Your rental income, the income of property manager, and the value-expansion of property are all dependent upon effective rent management.

What can owners expect from Rent Management Services?

Rent management is not just about money. It is more than that. It is obvious that income generation from property is the chief concern of an owner and property manager. However, the prerequisites for steady rental incomes are more than just setting the rent and finding a tenant.

The main challenge of rent management is minimizing the vacancy period and finding the RIGHT tenants. It is the right balance between occupancy and rent that matters. It ensures maximum annual rental income.

• Minimizing the Vacancy Period – How?

Property management companies undertake the following tasks to maximize the occupancy period.

1. They conduct elaborate neighbourhood surveys and rental market analyses to decide the best possible rent your property can fetch.
2. They mark possible tenant types in the area. Depending upon that, they suggest renovation and interior designing tasks that would make the property attractive to prospective tenants.
3. They advertise your home to the right people through multiple channels.

• Who are the RIGHT tenants?

High occupancy is not enough in ensuring a good rental income. A lot depends upon the kind of tenants your property draws. Right tenants are those who:

1. Have a clean police record.
2. Have a regular source of income and can pay rent in time.
3. Wish to use the property for positive and productive purposes.
4. Are not reckless. Else the repair and maintenance costs would go up!
5. Are not renting for a few months.
6. Are most likely not to vacate mid-season.

The property maintenance company’s experience in handling and selecting tenants counts!

Property managers lay special focus on tenant experience. They organize walk-throughs, handle everyday issues that arise during their stay, prepare agreements and help them in moving their stuff. This goes a long way in ensuring smoother rental payments.

Is it a good idea to avail rent management services exclusive of other property management services?

Property management services include home maintenance, interior designing and budgeting besides rent management. You can opt for these services depending upon a number of factors:

• How long are you going to stay away from their property?

If your stay outside the city where your property is located is about to conclude, you may only require rent management. It has to do with income, and no one wants to lose out on that! You might prefer to go for renovation, designing and repairs in your presence. Elaborate budgeting exercise would not be needed in such a scenario.

• How old is the property?

There is no question of changing the interior designs of a new home.

• How long do you wish to retain the property?

If you are planning to sell your home in the near future, interior designing has to be done accordingly. There is a difference between interior designing for renting, resale and personal use.

• When was your home’s last renovation and makeover?

There are two types of property maintenance tasks. Routine maintenance tasks include payment of bills, taxes and housing society charges. They may include minor repairs. You have little choice regarding these.

Occasional maintenance tasks include major repairs and renovation, and checking that the property is not overstepping any laws and regulations. These may not have to be carried out every season.

Similarly, interior design should be carried out with tenant needs and net rental income in sight. There are a few thumb rules for that like spaciousness, neutral wall paints, dark floors and strong fittings. You may require renting focused interior designing services when you convert your home into rental property for the first time. Subsequently, interior designing services would be required only once in a few years. To match with the new trends!

If property is your long-term investment…

Owners of multiple properties and those that seek to retain valuable properties as long-term investments need all property management services. Or let’s say that’s the best option for them! They get maximum benefits as property is maintained and designed season after season with the aim of rental income.

When all management tasks are geared towards single purpose, the results are better. They get income forecasts in advance which helps in financial planning. Moreover, they save precious time, energy and money, while the property value continues to rise in their absence.

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

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