Tag rental property

As a rental property owner, you have many property management issues to take care of. Of course, you can always hire a property manager to deal with the nitty-gritty. On the other hand, you can opt to manage your property too. However, rental property management is not as easy as it seems. Right from managing your tenants to safeguarding your property to handling the finances, you have a lot to do.

Tips on Rental Property Management

Here are some rental management tips that can help landlords know about the do’s-and-don’ts when renting out their properties.

HANDLING TENANTS

When you rent out your property to tenants, learn about your tenants’ problems and address their issues. Also, by following up after resolving their grievances, they know that you care for their wellbeing. Now, a good way of reducing tenant complaints is by inspecting your property periodically.

Non-payment of rent is another common problem of homeowners. By sending rent reminders to tenants and levying late fees, you can avoid payment issues. As part of rental property management services, property managers make it easy for the tenants to pay up by accepting online payments.

MAINTAINING YOUR PROPERTY

The rent management laws require property owners to maintain their property. Therefore, you may find it difficult to get tenants if you do not carry out the mandatory maintenance works. More so, you will find it cheaper to maintain your property rather than putting up with any festering issues.

You must replace your supply hoses and drain lines every few years as part of your maintenance measures. By doing so, you can avoid water-related issues.

A property management company in Delhi NCR recommends remodeling your property to save on exorbitant replacement costs. The best way to reduce your repair and replacement costs is by conducting property inspections every three to six months. When you do so, you know about the maintenance issues sooner. In turn, you can fix the issues on time to prevent the problems from worsening.

When to hire a property manager?

Hiring an NRI rental property management company makes sense if you’re not residing in the same city as your rental property. Nevertheless, even if you stay nearby your rental property, a property manager eases your burden. Moreover, if you do not have the time to manage your property round-the-clock, your property manager can do the needful.

When you work with a well-established property management company in India, you allow the professionals to take care of the daily management responsibilities. They have tie-ups with vendors and can help to offer discounts on maintenance costs.

OVERALL

Appointing a property manager helps in other ways, too. Such professionals help to screen tenants. They can sift out the good-quality tenants to reduce your property management woes. You can also reduce your tenant turnover rate by keeping them happy. Even by interior designing your rental property, you can make tenants stay for longer. Adhering to the prevailing tenant laws to avoid legal hassles is another way of reducing your workload.

Now, the charges of property managers are within the 8 to 12% range of the monthly rent charges. In addition, however, you get tax benefits when you incur property management costs.

Whether you’re looking to rent a home or buy one, you must base your decisions on your needs. Of course, with property ownership, you can enjoy the benefits of capital appreciation over time. But, conversely, when it comes to renting a home, you have the flexibility of using a property as and when required.

Going by your financial position, you must opt to either buy a home or rent one.

Scroll down to know about the different factors to consider before deciding whether renting or buying is your best bet.

• Consider annual payments

Before buying a home, the average person considers all the related aspects. While purchasing a home is an emotional decision for some persons, others prefer buying property over renting for the convenience benefits.

However, the property maintenance experts opine being financially prudent. They recommended buying a home if that is more profitable for you. On the other hand, you might want to consider renting a house if doing so makes more economic sense.

An important aspect that requires consideration when deciding between buying or renting a home is to compare the annual expenses.

In the case of home purchases, you have to pay a mortgage. A mortgage has two components: interest and principal. Because the principal is part of your savings, you should not include this component when calculating your expenses.

A prominent property management company in Delhi NCR will suggest using the interest component for calculating your expenses. This is because interest comes under your expenses. For example, your costs for buying a home include insurance, maintenance costs, property taxes, and interest (after subtracting the tax shield).

As far as your expenses for renting a home go, your calculations are relatively simple. First, you have to pay a deposit to your landlord. Deposit is not an expense but an interest-free loan, for you get the money back after the stipulated rent duration.

Other than that, you have to pay monthly rent. Here, you may want to incorporate the opportunity cost of your down payment if you’re buying a home. As such, you would earn income on your down payment money if you were not purchasing a home. So, you must deduct this amount from your monthly rent charges.

Thus, you have to compare your annual expenses of renting a home or buying one beforehand to make an informed choice.

• Future annual costs

Buying or renting a home are not short-term decisions. Also, you have to be committed to your choices for many years. So, comparing annual figures for the current year is not sufficient. Instead, it would be best to study your future expenses and cash flow to get an accurate picture of your costs.

Now, the story gets complicated because you cannot judge your property capital appreciation over the years. Yes, supposedly, you alter your capital appreciation by even a small percentage. But, the net present value of your property can change by a considerable amount.

Predicting future property prices is not easy too. So, the property managers tell you to be wary of your future assumptions when calculating your future property expenses for a precise representation.

• Risk for appetite

When concerned with your rent vs. buy decisions, your risk appetite also matters. If you have a risk appetite, you may think of taking a mortgage. With a mortgage, your risk increases because of the interest that you’ve to cough up. In addition, your net worth can change significantly if you’ve taken a mortgage due to market fluctuations. The reason being, a mortgage is a highly leveraged bet.

The rental property management professionals will recommend renting a home on the flip side if you’re not much of a risk-taker. You can always change homes and neighborhoods if rent rates rise in a specific locality.

• Constancy Vs. Flexibility

While owning a home provides stability, renting a house offers flexibility benefits. As a homeowner, you do not have to move homes frequently. And if you’re looking to experiment with different apartment sizes and localities, renting seems a natural choice.

In all, given your requirements, you should decide whether to buy or rent a home.

About LuXia LLP – A Property Management Company

At LuXia, we manage properties of landowners who reside elsewhere. Approach us to know about your various options for renting a home. We are well-versed with the real estate market and can offer houses on rent at competitive rates. Be assured that we will provide you with the best options as per your budget and preferences.

Alternatively, if you’re a property owner looking for top-ranking property management services, you can contact us to know more about how we can help you get the best deals.

Landlord-tenant laws are framed to serve the interests of both parties. Of course, different states and countries have varying rules, but landlords have some essential duties even then. Your rental property management team will update you on the same. Among your landlord duties, you have to maintain and handle the repairs of their rented properties.

However, here we have listed some general duties and responsibilities of landlords.

• Invest in landlord insurance

Any renowned property management company in Delhi NCR will advise landlords to first opt for sufficient landlord insurance. By doing so, you can protect your rented property and ensure your financial wellbeing.

As part of landlord insurance benefits, you can claim lost rental income owing to renovation works and other damages. The equipment you keep on your property for the maintenance works is covered from damages under landlord insurance.

• Mold Treatment

Your rental management services company will tell you to get rid of mold on your rental property beforehand. Moreover, because mold grows because of pipe or drainage damage, landlords should make sure to undertake the necessary repair works to prevent decay from growing again anytime soon.

• Repairing Works

By opting for timely repairs, you can maintain your rental property efficiently. So, if your tenant is complaining of paints peeling or clogged drains or the air conditioner breaking down, you must call the repairmen immediately. You can then shore up your rental values and maintain a healthy relationship with your tenants.

If you’ve not remodeled your rental property for a long time, you should think of contacting interior designing Delhi experts for the refurbishing jobs. Here again, you stand to benefit from higher rents.

• Smoke Detectors

An essential responsibility of landlords is to install smoke detectors in the houses they let out. In general, as per state laws, landlords are required to invest in smoke detectors.

Now, if you’ve already mounted smoke detecting devices on your rental property, you have also to make sure they are in working condition before your new tenants move in.

• Suitable living conditions

Another responsibility that falls upon landlords’ shoulders is to fix any issues that can cause potential harm to their tenants, as per the rent management system. As such, you have to maintain your rented property in a habitable condition. That said, you must check if your tenants have access to water and electricity.

• Right to Entry

When landlords and tenants sign a rental agreement, the latter is given their right to privacy. This means landlords have to consent from the tenants before entering the homes.

Under rental property management contracts, landlords can only enter the premises for repair work. Or, they can take prior consent to show the property to prospective tenants. More so, they are allowed to enter in emergencies such as fire or natural calamity.

• Security Deposit

Before moving into the rented homes, tenants have to furnish a security deposit, one or two times the monthly rent charges. The landlord has the right to keep the security deposit until the rent period expiry to cover any damages.

If landlords find damage to the property not arisen due to general wear and tear, they can use the repairs’ security deposit money.

• Non-Renewal Intimation

In some cases, landlords might not want to renew their rental agreements with their tenants after the stipulated duration. Here, the landlords have to serve a notice of non-renewal to the tenants. Commonly, the landlords should intimate the tenants 60 days before the rental contract expiry.

• Maintenance Works

Landlords can delegate the responsibility of lawn-care maintenance to the tenants. Even so, the lease agreement should include such a clause if that is the case. Else, the landlord is required for the lawn maintenance jobs.

Other than that, landlords have to burden the responsibility of removing or clearing snow from the pathways if they’re renting a property in places having cold weather.

FINAL THOUGHTS

To be on the safer side, you must discharge your landlord duties as required by the law. Nonetheless, if you’re opting for NRI property management services, you can leave property maintenance tasks and other responsibilities to their experts and breathe easy.

Contact our property managers for more information on rental property management.

contact@theluxia.com |   +91 9810505543

Managing your property from far away is an arduous task. Few NRIs think of selling their property if it is located in a posh locality. However, NRIs that own property in India have multiple anxieties.

There are two main roots of these anxieties.

There is the issue of safety and upkeep of the property. Parallel to it is the concern regarding the loss of value invested into the property.

No one wants their property to be used for wrong purposes or by irresponsible tenants in their absence. Still more, a property that is not maintained depreciates in value. Eventually, it loses out in the rental and resale market. It might even become unliveable!

Thanks to the professional property management companies, NRIs can now relieve themselves of their property maintenance burdens. Often, a property management company combines various interrelated services. For example, rent management and maintenance over a period of time go hand-in-hand. Similarly, pre-possession formalities and preparation of registry papers are usually done in quick succession.

The overall focus of NRI rental property management services is the following:

1. Allow the NRI homeowners to convert their property into an income-generating asset rather than a liability.
2. Manage the various billing, paperwork, legal, and agreements related formalities in the absence of the property owners.
3. Ensure good upkeep of the property so that its value gets enhanced gradually.
4. Help the homeowners who stay away from their property to keep control of their property remotely. Involve them in all important decisions. Supply them regular reports. Allow them to participate in real-time in the renovation, repair and, interior designing.

No NRI would want their property to lie in waste when it can generate a steady income. The underlying logic of rental property management for NRIs is as follows.

Professional property managers ensure you maximum rent from your property. A fraction of that rent goes into maintaining the property. A part of the savings from the rent goes into repairs, renovation, upgrades and, interior designing. A small fraction goes as the charges of property managers. The remaining amount is your income from your property.

While you earn your income, your property is being maintained for you. Besides, the value of your property keeps on increasing all this while. Basically, it is a triply beneficial deal for a very small fraction of charges. Besides, you save your precious time and energy.

How can Residential Property Management companies ensure you steady rental income?

Professional Residential property management companies maintain a dynamic database of prospective tenants. They market your property in the rental market to reduce the vacancy period to a minimum. They also ensure that your property derives the maximum possible rent by highlighting its advantages.

On the flip side, the company would also ensure that competitive rents are set. Your property would thus not lose out in the rental market. Timely collection and transfer of rent from the tenants is also the company’s responsibility.

What all services can you expect from Property Management Services for NRI?

Generating rental income from your property is the foremost task. Much else needs to be done for overall property management.

#1. Finding the Right Tenant

Doing a proper background check is an essential property maintenance service. You would not want your tenants to have questionable backgrounds. Besides, property managers will carry surprise inspections to ensure that your home is used for productive and positive purposes,

#2. Maintaining the Property

This is the next big responsibility of Property management services for nri after rent management. It has three aspects:

• Bills and Maintenance Charges: Property managers would make sure all the bills are paid in time. Besides, there could be housing society monthly/annual maintenance charges as well. With a property management service you would no more need to keep a checklist of dues.
• Regular Repairs: Repairs have to be made after the tenants leave. Before a prospective tenant is coming to have a look, everything should be in right place. There are plenty of fittings to be checked for their functioning every month. Property maintenance services maintain links with plumbers, electricians, masons and carpenters etc. to carry out regular repairs.
• Renovation and Interior Design: Sometimes, your property would require refurbishing both from inside and outside. Its interior design could have become outdated and the paints too dull.

Your property should remain attractive to tenants. Besides, it should keep up with the changing trends so that it can compete for value. Property management companies will contact you to confirm all the details of renovation. With periodic visual reporting system, you can decide when to go for refurbishing. You can even participate with designers in real-time from remote location as your home gets a new look.

#3. Documents and Pre-possession Formalities

Rent agreements have to be signed with tenants. In case you have just bought the property, it has to be registered with the authorities.

There are about a dozen documents that a new owner needs to obtain.

These include allotment letter, land-use certificate, mother deed, occupancy certificate, transfer certificate, NOCs, receipts of the property tax etc.

However, with the experience of property managers, you are ensured to not miss out on any crucial document. Your property would not run the risk of overstepping any local, state or national regulations. It would always comply with latest property laws.

There are a number of other pre-possession formalities that your property management company can do for you. These include:

• Checking the quality of electricity and water connections.
• Seeing that bathroom and kitchen fittings are working.
• Inspecting the woodwork and tile-work.
• Ensuring the parking space.

Overall, it is meant to ensure that the seller/builder has kept the word.

With Rental Property Management Services, NRI owners can now Relax!

Creating a rental income channel from your property as an NRI homeowner has become a lot easier. You would also be ensured that your property increases in value gradually. Favourable markets play their role, but good rents and higher value can only be ensured by good property management. Thus, you need to relax by entrusting your property in the hands of a competent property management company.

Get started with our NRI rental property management services.

contact@theluxia.com |    +91 9810505543