Property Inspection Tips: A Handy Checklist

The detailed inspection of the property you are planning to purchase, is an essential step before entering into an agreement with the seller. Sellers usually try to hide minor damages, so that they can later pin them on the buyer and avoid the repair costs. Checking the property for any hidden damage or structural issues is always a good idea so that you don’t have to pay for the repair of these complications. Here’s what you should look into:

1- Check For Water Leakages

One of the basic damages that go unnoticed during casual checks are the small gaps that later go on to cause water leakages. Another unnoticed issue is water seepage, which causes damp walls. This problem is more prevalent in apartment buildings, where water seepage in an apartment, causes damp walls in the room directly below the faulty water seepage.

2- Lookout For Cracks

Thorough inspection of walls and ceilings for possible cracks is very essential. Usually, what looks like just a minor line on the wall turns into something substantial with time. So instead of running through the house inspection, it’s better to take your time and closely inspect every area to detect cracks.

3- Inspect The Plumbing

Proper plumbing is the foundation of a well-built house. Without this, the water supply and drainage pipes become faulty and can cause massive damages for you. A comprehensive check of the plumbing system can be done by checking the condition of the pipe material used for draining, waste, and venting purposes.

4- Test Window And Door Fittings

Another important aspect of the property inspection process is the absolute and thorough checking of the window and door fittings. A loose window or door is an invitation for accidents and should be properly checked to avoid mishaps. Also the setting-in of windows in their frames must be ensured, so that they can close easily during rains and sandstorms.

5- Measure Room Size

Before finalising the property, measure the size of each room on your own and map out how much space you will require for placing furniture and other items. Estimating just by looking may not be a good idea, as later you will realise that the room is actually smaller than what you had anticipated.

6- Ensure Proper Ventilation

Passage of fresh air through the house is of utmost importance for the health of the inhabitants. Ensure that proper ventilation vents are provided in every room for brisk air, and that the rooms have good scope of receiving sunlight. Also, if you are installing a central AC, make sure that all the wires and connections are safe.

Property Management Provides Peace of Mind

While real estate can be a lucrative investment, managing tenants, repairs, and related issues can be challenging. This is especially true for owners who live in another location or have full-time jobs beyond their real estate investments. For these individuals, hiring the right property management company can provide much-needed peace of mind. Here are questions to ask when interviewing a potential property manager.

1. How long have you been in business?

Not only is a lengthy record in the industry often indicative of a trustworthy business, but it also means a manager has likely dealt with most problems that tend to crop up with rentals. Experience with a range of issues, including legal, accounting, emergency response, and maintenance expertise, is essential.

2. Are you licensed by the appropriate state and industry authorities?

In most states, licensed managers must take an approved property management course and passed a state licensing exam. A licensed property manager in charge, or PMIC, is allowed to manage other managers and run his or her own business. He or she is knowledgeable about state regulations for handling rental income, security deposits, and other financial matters.

In addition to licensure, certification can indicate more extensive industry knowledge. These credentials are granted by trade organizations, including the Institute of Real Estate Management, National Apartment Association, National Association of Residential Property Managers, and the Community Associations Institute.

3. Can you provide referrals from past clients?

A property manager should be able to provide contact information for current or past clients that have agreed to speak on his or her behalf. Potential clients should check out the addresses of which the business is in control to ensure that they are being run properly. By the same token, relying on referrals from trusted contacts is a good way to vet a short list of potential companies.

4. What fees do you charge?

While there can be a wide range of industry fees, the standard costs include a management fee ranging from 4 to 12 percent of the monthly rent, depending on the location and condition of the real estate, whether there is more than one holding, how many units in each, and what types of services are required. Some companies charge a monthly vacancy fee when the home is uninhabited, while others require the full fee regardless of whether there’s a current tenant. A set-up fee for a new client can be up to $300. Also, those relying on a management company to find tenants can expect to pay 25% to 100% of the first month’s rent (usually around 50 percent).

5. How often do they inspect?

The answer to this question is a key to ensuring that a real estate investment is protected. While a property management firm should inspect anytime there is tenant turnover, regular inspections should still be done when there’s a long-term tenant. Intervals can vary, but units or homes should be inspected at least once a year, as well as an external inspection every quarter to notice any potential developing issues.

Real Estate Property Management

One of the biggest decisions you will make as a landlord is whether you should hire a property management company or not. Many landlords manage properties on their own or with the help of an employee, such as a resident manager. Sometimes it happens that landlords need more help when property issues are complicated. This is when landlords need to seek the help of real estate property management companies.

Real estate property management companies can be a huge asset to your company but they don’t come cheap. They deal directly with prospects and tenants, saving you time and worry over marketing your rentals, collecting rent, handling maintenance and repair issues, responding to tenant complaints, and even pursuing evictions. A good property management company brings its know-how and experience to your property and gives you the peace of mind that comes with knowing your investment is in good hands.

A real estate management business is an independent contractor and this helps you avoid the hassles of being an employer. Along with the benefits, hiring a real estate property management company also comes with a drawback of being an expensive one. If you are living far from your rental property, it will be difficult for you to handle property issues from afar. Most of the landlords look forward to finding good tenants to maintain their property in good and attractive condition.

On the contrary, there are few landlords who look at their property purely as an investment and are not interested in lending them to any tenants. In this case, the best option is to hire a real estate property management to handle the property and manage the related issues. Even if you enjoy hands-on management, you will run out of time to concentrate on the growth of your business which will put you in a situation to hire help for your property. Hiring help of a real estate property management company is an attractive option if you can afford the fees for the same. While interviewing management companies, expect to hear quotes ranging between 5% and 10% of what you collect in rent revenue.

Trying to choose a property agent can be daunting, after all you need someone with experience, energy and a passion to succeed! Perhaps even more importantly, someone who will talk to you and honestly discuss how the real estate industry can work successfully for you. In real estate, it’s about service – and that’s what gets results!

How to Turn Your Property to a Regular Income Source

Syndicate Investments

A syndicate is a cluster of people who own property mutually while paying a property management company (Ex: Assured Properties) to manage it and deal with the tenants and maintenance. Syndicates generally operate multiple properties, and are usually able to negotiate discounts on property purchase by buying in bulk (for example, purchasing a whole block of flats rather than one unit). This helps you to get involved in the property market at a lower initial cost and reduces the risk factor.

Property Funds

These are associations that sell, buy and manage property, in which you can invest. You don’t have to bother about the daily business proceedings, which is usually taken care according to pre-agreed terms. You can join a property fund through an independent financial adviser. Funds are regulated by the FSA.

Property Renovation for Profits

This is a practical path for people who are well versed about the market with the right skills and the perfect contacts to improve/develop a property quickly and sell it. This is the ideal option when you are sure that the property prices are not going to rise, Example: recession. These kinds of investors are proficient in renovating semi-ruined or derelict properties and bring them back into the market.

Property Trading

For people who know their job and are ready to invest their time & expertise to look for properties that are low-valued or semi- derelict, possibly they can make minor changes or alterations, such as getting a planning permission for an extension, once the value is added, it is possible to trade on at a profit.

Buying ‘off-plan’ property

The buyer purchases unbuilt property from a developer, hoping to sell it on at a profit after it is completed. The investment is highly risky in a static/falling property market.

How to sell your property quickly

Research the local market – Check your property value.

Select a solicitor – Be ready and prepare your paperwork.

Choose a genuine property purchasing company to sell your home efficiently.

Prepare your home – De-Clutter & Create Space

Market the property – Issue particulars & advertise.

Agree a price – Decide the best price you are willing & make a deal.

Conveyancing – Make it legal and agree what is included. Be clear about the paperwork & the legal aspects.

Exchange contracts – Finalise the sale & complete contracts.

Choosing the right property management service usually ensures a guaranteed sale.

A Guide to Select the Best Property Management Services

Owning a property is not an easy task at all. One needs to make a lot of efforts in order to maintain it. There are many complications and issues that come associated with the properties. Right from the beginning in the entire process of buying and selling, one needs to ensure that the property is in the perfect condition. When you own a land of your own, it is high time that you pay attention to the property management. There are many people who are unaware of the importance of managing the complications. While managing it, one needs to make sure that the papers are correct, it is well maintained and the taxes are submitted timely.

Property management also includes corporate budget preparation, business image consulting, strategy researches and book keeping analysis. There are a few things that you need to keep in mind while hiring a property manager.

Choose the right company

There are many property management companies which will provide this kind of service in your locality. Finding the right company among so many is little bit difficult. You need to find an efficient company who can manage your property. Never hire the first company that you contact. Short list at least five companies and then visits their websites to check what the services that they are offering are. Then, after you select a company, you must call them up and talk about your requirements.

Decide what you want from the company

Each and every company has different needs. You need to be clear within yourself what you need from the company and how can they benefit you. This is something that you need to decide before you are making your first call to that company. Jot down all these requirements and assure what you really want from these management companies.

Referrals

Referrals play an important role in the process to select something. You can seek recommendation from others to know about what company they chose and how did it benefit them. In this way, you are going to find a reliable company who can provide you the best management services. But if you do not have suitable information from this, you also have other options to choose from.

Do an online research

Internet can be the best friend when you are searching about some information. Browse online in order to find the websites of the companies that are doing a great work to manage property. You can also get the contact details of the companies from their websites. Always check the review page of the company’s website where the previous customers have sent their reviews.

Since, the property management is not an easy task at all, it is advised not to handle it on your own completely. Moreover, you also have many other important tasks to complete. Therefore, it is very crucial that you do not get involved in the matters of management when you know that you are completely a novice in this field. Instead hire an expert to accomplish the tasks efficiently.

The Most Vital Things That You Should Know About Property Registration

It’s important to know all the main steps to be sure of the acquirement or selling of any given asset. Any kind of property like lands, ready-to-move apartments, commercial spaces and all others have to go through the registration process.

The process is highly complex and needs proper attention at every step. So a proper Act with distinctive laws is devised to make sure that the information about the deals concerning property assets are up to the mark and correct. This definitely helps ensure accurate record and maintenance.

Among many other factors, here are some of the chief points that you must know about the registration method:

Find out a reputed Sub-Registrar in your locality

The entire process is initiated by a Sub-Registrar, so you must consider this gazetted officer as the main point of contact. His duty is to ask for all the documents required in the presence of both seller and buyer parties.

He checks different aspects of the documents such as the date of the certificate, the stamp and registration act and the stamp duty. All supporting papers such as RTC, Form 1, Form 60 and 61 PAN are also tested by him.

Know the real market value

The sub-registrar as well you as a property seller or the potential buyer needs to know the real market value of the property. This value is estimated by the Market Value Committee. But if any of the parties disagrees with the set value, he or she can make an appeal to the District Registrar.

Be sure about the property title

The property title is another important information that you must be aware of. It consists of the details about the origination of the asset. This aspect is hailed as important because in case the title of the property is not clear and merchantable then the banks may refuse to provide financial support.

Prepare an accurate sale deed

This is also a very important document that is framed between the buyer and the owner or the developer of the property. It is prepared and duly signed by an authorized attorney. Here in this documentation you have to ensure that the schedule of the property is mentioned correctly.

Alter the property title

After completion of the registration process, the very next step is to apply to the local municipal authority to get the new title of the property and even get it transferred to your name. This process is called mutation of the property title. The method of mutation is fully automated now, making it even easier and flexible.

Best Three Tips To Find Your Rental Property

With the rising cost of properties, It has been harder than ever to buy a new home. Of course, people cannot do without a roof, and there comes the choice of rental properties. Finding the right home isn’t going to be easy, especially in US and Canada, where landlords are charging insane prices for almost every single home. As a smart tenant, you have to go a step ahead and decide on certain things before narrowing down to certain choices. In this post, we will talk of some of the things worth considering before you find your rental property.

Start with an online check

Gone are times, when you would need to spend hours on the weekend trying to find ads for rental homes! Thanks to the internet, things are much easy today, and you can find some amazing sites that enlist rental properties for most states and areas of US. You can check properties based on your needs, and it is very easy to sort a few options. Some of the sites connect the tenants with the landlord directly, which makes the process of negotiation and discussion much easier. Just make sure that you choose the right website, which has plenty of properties.

Check the budget

It is essential to have a budget for your home, but don’t set an amount based on your whimsies. There are always a few trends in the rental market when it comes to prices, and hence, you should spend some time researching on the same. Make sure that you check for the actual rent, added expenses if any and other long and short term expenses. Typically, rental sites can give you a good idea of how much you may need to shell for a particular type of house, but you can also check on other sites too.

Know what the lease means

Many tenants don’t read rental agreements in detail, and that can have serious consequences. There are usually a few things that you should note. The first thing is the length of the lease, which should be clearly mentioned. Secondly, you need to check for deposit requirement, and how the landlord is going to deal with the refund when you move out. The third part is property maintenance, and you should know if there are any expenses that are payable every month.

Also, not all home owners allow pets, so if you intend to bring your pooch home, always discuss the same. Sometimes, homeowners and landlords don’t allow changes in the house, like adding of special lights and painting, and hence, you should talk on the same. If you are going to have roommates, you need to know the arrangements with them, and the lease sharing clauses, if any.

Property Management and Rental Terms Glossary

Moderate Housing: This sort of lodging is that of which a government or state office oversees with an end goal to offer help and control the rent to the individuals who meet a specific foreordained criteria.

Luxuries: Intangible and unmistakable elements that are incorporated into or on a property that improve the allure or estimation of the property.

Flat: A multi-family assembling that is intended to house separate people or gatherings of families inside the same building.

Expedite: A land proficient that buys and offers property for others with a specific end goal to get a commission. This expert must be authorized and qualified to rehearse in the state he lives in.

Apartment suite/Condominium: A multi-unit fabricating that takes into consideration singular units to be claimed by its inhabitants. The normal components of this kind of building are possessed by all proprietors inside the townhouse.

Routine Housing: This kind of lodging sticks or complies with the business sector rate, or satisfactory benchmarks, of the territory’s lodging.

Co-Signer: An extra endorser on a lease or home loan that is utilized as a part of request to check the personality of the guideline proprietor or to give a specific level of surety to the moneylender or landowner.

Duplex (House): A house that was intended to house two separate people or families inside the same house. Case in point, a house that has an upstairs for one family and a down the stairs for another family is viewed as a duplex.

Square with Housing Opportunity: The open door for all subjects in America to have the capacity to live in different lodging groups paying little mind to race, sexual orientation, age, nationality, familial status or incapacity.

Morals/Professionalism: An arrangement of standards and good rule that become possibly the most important factor when directing proficient conduct.

Expulsion: A procedure through legitimate means with an end goal to expel a man from their home because of an infringement of the assertion, whether the occupant has not paid rent/contract or on the off chance that they have abused another type of the understanding, for example, commotion unsettling influences.

Reasonable Housing Act: This law is of a government status and was placed in actuality to stop the separation that happens in lodging in view of race, age, shading, handicap, sex, religion, national starting point and familial status.

Lodging Assistance Payments (HAP) Contracts (PDF): The HAP contract is utilized so that those under the voucher project can get area 8.

House: A living arrangement in which individuals live.

Lodging and Urban Development (HUD): The mission of HUD is to build the entrance to lodging that is moderate without separation; bolster the improvement of the group; and expand the homeownership rates.

Pay Levels: These are points of confinement as characterized by the administration that are utilized to set up expense credit limits and different sorts of moderate lodging.

Toxic Paint Disclosure: Requirements that got to be powerful starting 1996 to guarantee that families and people are made mindful of homes that contain toxic paint.

Lease: An oral or composed contract that is created between a landowner and his inhabitant that furnishes the occupant with the privilege of select ownership of the home for a particular measure of time. By and large talking, for leases that are longer than one year, the assertion must be in composing.

Lease Option: An assertion that permits the inhabitant the choice to buy the property they are renting toward the end of the lease term, or some time amid the term of the lease.

Lease Renewal: The restoration of a lease once the term of the lease has terminated.

Lease Term: The measure of time that is settled upon between the landowner and inhabitant in which the occupant will possess the property.

Tenant: The occupant who has concurred for the term of the lease.

Lessor: The proprietor who has concurred for the term of the lease.

Low Income Tax Credit (LITC) Properties (PDF): These sorts of properties give the proprietor a specific measure of expense credits in return for leasing to qualified occupants as assigned by the Justice office, HUD and the IRS.

Support: The upkeep and consideration of a property.

Persons With Disabilities Act: A demonstration that insurances rise to open door for those with inabilities.

Pre-Qualification – This is the main stage in the offering procedure where the most extreme advance sum for the candidate is resolved.

Property: A bit of land and additionally the perpetual apparatuses, for example, structures, that is joined.

Property Management Made Simple

A fast, simple and effective way for landlords to manage their property portfolio with minimum hassle.

Being a landlord or a property manager can be an arduous task. There is usually an endless list of jobs that need to be taken care of, whether you’re managing a single property or a vast portfolio. There are several landlord property care apps offered by property management groups to help property owners in managing their property and keep everything running smoothly, taking the stress out of daily tasks.

WHY DO I NEED AN APP FOR THIS?

Downloading the app provides a simple and efficient way for you to manage your properties. It’s intelligently designed, easy to use features have been developed by the experts in app development to cater for your specific requirements. With its key features you can digitally take control of all tasks with a swipe of your finger.

KEY FEATURES:

  • Managing Tenants
  • Monthly rental payments
  • Utility management
  • Rent review
  • Property inspection reports
  • Annual safety tests
  • Lease management
  • Print yearly/ monthly taxable finances.

MANAGING TENANTS AND RENT

When it comes to managing rent owed and tenants the app couldn’t make it simpler if it tried! You go to the sub section you need, click the icon and straight away you can add new tenants, storing their personal information i.e. phone number and address, as well as their moving date and contract end. As for rent you merely need to select the property in your portfolio, specify the date, rental fee and Estate agents commission and you’re sorted. This saves a lot of time and productivity in the long run, meaning you’re not chasing any overdue payments or tenant details.

TAX MADE SIMPLE

Everyone knows that trying to keep on top of yearly tax returns can be a nightmare, but this is just another reason why this app is extremely beneficial. It allows you to do your own book-keeping on the move, by logging all of your income and expenses, when and where you necessary, to keep on top of your accounts. In the long run this will be more beneficial for your accountant or even for yourself if you organise your own accounting. Moving forward, this means you can review monthly and yearly reports with the tap of one finger, as well as track your taxes making your End of Year returns report easy to access, and print off for your benefits.

The same format is used when logging Expenses, again these are all kept in one place, and you can easily input property expenses through their individual property details and log important expenses such as Interest only mortgage, Capital Mortgage, Repairs, Insurance, Cleaning, agents involved etc.

ADDITIONAL SUPPORT

An additional benefit is that you will have a dedicated support team which promises to assist you with any technical and non-technical help that you may require. This gives you reassurance and trust that your portfolio details are in the right hands, and that all information is deemed confidential, to which you will only have access to, and none of which will be shared to other Property Managers.

In conclusion the Landlord Property Care app is truly a sensational digitally advanced way to manage all your business related requirements from your phone, and is considered to be the way forward in Property Management advancement.

Reasons for Hiring a Property Manager

The dreaded phone call comes in that your tenant has a clogged toilet at 8pm at night. What now? So you scurry over to your rental property to determine if you can fix it. You check it out, maybe even try to plunge it. Nothing happens, still a slow drain and a gurgling noise. At this point you have wasted over an hour of your time, time that you should be spending elsewhere.

You shrug your shoulders and tell your tenant you will call a plumber as they will need to snake the drain. Giving your tenant the benefit of the doubt that there are likely roots in the main line which is causing the gurgling. You finally get a hold of a plumber that will be there sometime tomorrow between the hours of 1 and 4 pm… and you need to be there to authorize work. Ugh! Now what?

So you take the afternoon off of work and wait for the 30 minute courtesy call that they are on their way. You get the call! You head over to the rental property and meet the plumber, the tenant says that the slow drain and the gurgling is still happening. The plumber looks for the clean-out, but can’t find it and you aren’t sure where it is. So the plumber goes to the roof with his snake. 30 minutes later he comes down with a child’s small toy that had been flushed down the toilet. OK, not great, but at least it’s fixed for a couple of hundred dollars and not tree roots. The plumber goes back inside to test the toilet and comes back out with bad news… still won’t flush!

So now the plumber says, do you want me to pull the toilet? That’s another charge. You shrug your shoulders and say yes, because what else are you going to do. The plumber takes his snake inside and pulls the toilet. He starts his snake and out comes a headless child’s doll covered in toilet paper from about 1 foot down the pipe.

Now the plumber comes back out and says, here is what I found. Since the toilet is off do you want me to camera the drain in the case there are more items down there. Of course you say yes, cause if he puts the toilet back then has to come back to do it that is another charge.

Plumber comes back out and says the camera showed nothing else is in the drain. You sigh and he fills out his paperwork along with charges of around $300-400. He puts in his report the issues and the apparent abuse caused by the tenant. You ask him to put as much detail in the report as possible so that you can charge back to the tenant, and he obliges and says good luck with that.

At this point you are into this little project for over 4 hours of your time, half a day off work spent standing outside of your rental, and a few hundred dollars because your tenant’s child decided they didn’t want their toys anymore.

And people say Property Management is to expensive.

Granted you still probably would have paid the plumber, but at a discounted rate. The soft costs are your time, energy, paid time off, and the stress of the situation.