Considering the skyrocketing prices, there is no denying that real estate investments can take up a lump sum amount…often your life savings.
However, investing in income properties has proven profitable for several landlords. It depends on the demand for rental properties in the specific location, amenities on offer, and other factors. In this article on real estate investments, we have provided an overview on:
Whether you are looking to rent a house or have multiple residential flats for rent in Bangalore, there are prospects to generate income from real estate investments. Read on to explore the prospects of income from real estate properties. What is Income Property Investment When you purchase a real estate property for a source of income, it is called income property investment (also called real estate investment). A real estate investor, whether an individual or a company can earn money by putting the property on a lease agreement, monthly rent, or resale. Some landlords go an extra edge by selling their properties on rent when demand soars high to maximize profits. Besides earnings from monthly rentals, they make money from the resale. Types of Real Estate Investments There are several ways to invest in real estate for high returns:
Often people keep away from real estate to avoid the problems and expense of regular apartment maintenance. Buying REIT company shares allows you to enjoy high dividends while these organizations deal with the properties. To ensure safe investments, buy real estate shares from listed REITs. The 3 listed REITs in India that are great for investing include:
Despite the work involved, most people invest in residential properties for a steady flow of income. In metropolis cities, where demand for rented apartments is very high, investors explore the opportunity to buy a flat on a mortgage loan. A calculative approach can help the investor earn returns while paying the monthly instalments from the rent. It also keeps your chances alive to make hefty returns from the resale value in the future. However, managing multiple properties can be troublesome if you are engaged in other professional commitments. Working with property management services Bangalore can help through such strenuous processes.
The rent for commercial properties is very high so is the profit margin. Similar to residential property, you can use it or earn money from a lease contract/rent.
Flipping has emerged as a business opportunity for many people. The process generally involves:
Reasons Income Properties are Worthy Investments
Wrap Up, The ultimate decision to invest in real estate rental property is always based on the landlord’s assets, income goals, and other aspects. A scalable strategic approach to real estate investment comes with a pool of steady passive income opportunities. Do you need a rental property manager? SANGAU provide assistance in rental property management in Bangalore. Contact us for a consultation for more details about our real estate management services.
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The next step after buying a real estate property for income is to decide who will conduct the property management. As the owner, you must deal with legal formalities, regular maintenance, repairs, accounts management, etc. Despite being a source of passive income, it takes a lot of effort and time.
There are two ways to manage rental properties:
Read on to explore the ins and outs of investment property management. This is a concise guide for landlords who want to go the DIY route to manage their real estate assets. Investment Property Management- Roles & Responsibilities of the Owner The roles and responsibilities in investment property management can be grouped into 3 main categories. Herein is a synopsis of different types of rental property management: Property Management Efficient property management proves a prime factor in bringing in prospective tenants and profitable income. Your job starts from day one, encompassing the following aspects:
Tenant Management This is the most arduous task in the entire process involving legal procedures, managing tenancy disputes, dealing with non-paying renters, and more. Starting from scratch, you will be performing the following tasks:
If this seems too overwhelming, you can hire experienced professionals for best tenancy management in Bangalore. Accounts and Finance Management A rental property owner has to maintain all financial records to avoid problems with taxes and legal matters. It is necessary to keep a record of earnings (security deposit, rent, other charges), expenses (repairs, maintenance, utilities, property taxes, landlord insurance, etc.), and other details in the financial statements. You need efficient rental accounting software to maintain all financial records of your income property. Tips to Manage Your Investment Property If you want to manage your rental property yourself, herein is a short guide to getting started:
While fixing the rent amount, quote a rate per se for the prices in the regional rental market. With a low rent price, you will suffer losses covering the associated costs. Look into the following aspects when setting the rent price:
DIY landlords mostly place ads with popular online rental listings and local newspapers. Some property websites also offer tenant screening services. Post a video of the rental property to boost views.
If you are a DIY landlord, these repair and maintenance best practices can lower the costs:
To make a profitable regular income, you must collect the monthly rental on time. Late payments may interfere with your financial goals. Many tenants set up automated online payments to avoid unnecessary delays. For safety, include a clause for late payment fees in the lease.
If the occupant does not pay the rent, you may file an eviction lawsuit. The expenses may vary depending on the lawyer’s fees and other costs. But it is always mandatory to follow the appropriate law and order during the process. Please read our article on tenant eviction rules in India.
You will need the legal documents and account information in the future for filing tax returns, paying property taxes, etc. Using rental property software offers storage for all such details securely, and generate financial reports, tax reports, and more. Do you need help with rental property management? Contact SANGAU, a reliable firm for rental property management in Bangalore. We offer tenancy management services, NRI property management, and more. Property rental management services are used for routine monitoring of the tasks related to the residential, commercial, or industrial property rights by third parties. In general, property managers are responsible for the daily repair and ongoing maintenance, security, and upkeep of real estate properties.
They usually work on behalf of the property owners or investment properties such as homes, apartments, condominium complexes, shopping centers, industrial parks, etc. These property managers are given certain routine maintenance tasks by their owners so that the value of the property remains intact and provides them income with this. If anyone requires such services, then you have to contact the Rental Property Management in Bangalore. Key points about the rental property management:
Why Choose SANGAU? SANGAU is a top Bangalore Rental Property Management organization providing top-notch service to property owners and tenants. Here, it provides property management services for the property owners for their apartment/villa with or without charges involving BASIC & PREMIUM Plans. For rented property, the organization will signal the renting settlement with the tenant directly. Complete transparency is maintained in communication and financial transactions between tenants and owners. The security deposit is deposited by the tenant to ensure timely payment of rent.
As an experienced Rental Property Management in Bangalore, the organization deals with hundreds of satisfied clients in the form of owners and tenants. Our solid plans and systems, as well as our experienced team, help us provide high quality, personalized service that sets us apart from our competitors. Renting a property is not as simple as one might think. A Rent Management company helps tenants with identifying the best property that suits their budget in addition to taking of the property during their tenancy. Renting a property with brokerage has an advantage that it saves tenants time. If you are new in town and searching for a rental property, then you might find hiring a broker more comfortable than anything. So, the broker knows the city and renting properties available in the town. But there are some side effects of renting a property through a broker. So let's discuss some benefits if you rent a property from a rent management company and do not have to pay any brokerage fees.
Cost SavingThe broker always works for a commission. They charge a percentage of the property rent as their commission. Like if a landlord has agreed to pay a commission of 1% to 2%, then broker would possibly demand more rent from the tenants to earn more commission. In short, he'll negotiate with you for a higher rent to earn more commission. Unlike many other property and rent management companies in Bangalore, SANGAU, does not charge brokerage. They rent owner properties which is already being managed and maintained and works towards generating income from property. So it is in the company interest to ensure they find good tenants as quickly as possible. Renting a property without having to pay brokerage helps the tenant save money that can be used for other purposes like pay for move-in charges or utility bills. No rush to make a deal If you're renting a house through a broker, it will save you time. But there is a negative side of the time factor. Brokers are paid once the deal is signed and it motivates them to make a deal as soon as possible. So, they are in a rush and try to push both parties to sign the agreement. A property broker role is limited to connecting a prospective tenant to an owner. Once a rent agreement is signed the broker has no role to play and the tenant and owner has to deal with each other. As there is no accountability for the broker after the rent agreement has been signed there is a good chance that all information pertaining to the property or owner has not been shared with the tenant. Like, a tenant may not be made aware of issues in the property, i.e. water, gas, sewerage issues. They try hard to make a deal so they can earn a commission. This can result in misunderstanding and an unhappy stay for the tenant thus leading to the tenant vacating the property for a better one even before the termination of a rent agreement. There would be a benefit of renting a house without brokerage from a rent management company like SANGAU. You can investigate all matters and they cannot lie as the tenant has to deal with the company in future too. Only after complete satisfaction does the tenant need to make a deal and sign the lease agreement. A large portfolio of houses for rent in Bangalore are available with SANGAU, a Property & Rent Management company, and tenants can choose properties that meet their rental needs. No conflict of interest A broker works for the commission and as the rent payment increase so does their commission. This raises a conflict of interest as the broker doesn't work towards the individual attention of the prospective tenant. Tenants wish to rent a property at a lower cost while the broker wishes to sign the lease agreement at a higher rent. If the broker wanted to work for the benefit of the tenants, then he would possibly have to make a deal at a lower rent. Conclusion In the end all of the benefits commonly lead to cost-saving for a tenant and a comfortable stay during tenancy. SANGAU does not charge tenant for property viewing or brokerage when finalizing a property. Additionally they provide free documentation and maintenance support all thru the tenancy period. They have a large portfolio of apartments and villas in Bangalore. A tenant can rent property that suits their needs at zero cost Some rental properties are managed by Owners or real estate agents. But on the other hand, big apartment complexes or villas in a gated community are managed by property management companies.
A property and rent management company like SANGAU, in Bengaluru has several residences under its management. Such companies have established processes and procedures for screening of prospective tenants. They are approached by a wide variety of tenants so they try to get only screened clients that meet their tenancy requirements and who would be beneficial for them for a long term relationship. Some of the steps followed by such companies during a screening process are listed below. Proof of identity Rent management companies firstly verify the renter's identity. The primary purpose of this is to check the tenant provided data of the renters that can be used in unforeseen circumstances. On the other hand, in some states, it is a legal obligation to verify the renter's identity and submit the legal documents to the relevant government department. Identity can be verified by a government identification document like Aadhaar, driving license or a passport. Income Proof Rent management companies also require renter's income proof to ensure that they have the financial capacity to pay monthly rentals. The income proof requested from a prospective tenant could be a salary slip, income statement, bank statement or tax return. Companies have established a threshold income for acceptance depending on the property type and monthly rent value. They would validate the tenants’ ability to pay monthly rent on time without any delay. It also helps the companies to offer a suitable apartment to the renters based on the paying capacity of the tenant. Criminal Records It is the responsibility of rent management companies to protect the community around their property from criminals. If situation demands the company can request prospective tenant to furnish a police clearance certificate. This helps companies to screen those renters who have any past criminal records. In some states, it a legal requirement to submit tenant documents to the police station which is in the jurisdiction of the property. Service fee Some rent management companies demand a service fee that is not refundable. Tenants pay the service fee to the companies in return for their saved time to research a property that meets their needs. Such companies cater only to prospective clients who can pay the service fees. Occupancy Type Some owners or resident owners association could have specific tenancy requirements and these need to be adhered to when finalizing a tenant. Examples of restrictions are - not allowed to keep pets, renting to only family and not bachelors or spinsters, renting to vegetarians only etc. Due to such restrictions certain properties may not be available to tenants. Move-In & Move-out Charges Some resident owners associations’ have restrictions and rules for move-in and move-out of tenants from the apartment or villa complex. A tenant should be willing to bear this cost when applicable to be able to rent the property. Previous Renting records Rent management companies may communicate with the previous landlord to evaluate the tenant's behavior, attitude and paying abilities. This process helps companies to assess the best tenant for their property. They can timely screen out the unwanted and uncivilized renters that can cause a headache in future. References Any reference in a tenant’s application can increase the chances of acceptance. This reference can be from the employers, relatives or recent landlord of the tenant. The companies give due consideration for such references while evaluating the renter. For More Details visit:- http://sangau.com/ Rent Management company, such as SANGAU in Bangalore helps the tenants to rent a property with them. At the same time, they also help landlords in getting tenants for their property. Property Management & Rent Management companies act as an intermediate between landlord and tenants.
Cost-EffectiveOwning a property that can be rented is a profitable business nowadays. The landlord owns the property and they always wanted to charge more for their property, whereas the tenants wish to cut down on their rental expenses. Tenants always want to rent the best property in a cost-effective manner. Renting a property from a well-known property and rent management company like SANGAU in Bangalore is helpful as they have a large portfolio of rental properties to choose from. They also help a tenant in choosing an apartment or villa of your choice on reasonable rates by discussing with the property owner as they know the market rates and try their best to make a deal that is suitable for both tenants and landlord. Repairing and other problems A company like SANGAU helps their tenants in many ways. They do not charge the tenant for property viewing, brokerage if the tenant decides to rent a property or any service fee during the complete period of their tenancy. Additionally they also manage and maintain the property on behalf of the owner so they take care of any maintenance issues that may arise during a tenancy. They are responsible for repairs in the property and liaise with the landlords for timely repairing and maintenance of the property. Property maintenance is no longer a tenants headache. They collect rentals from the tenants and pay to the landlord. Property management companies listen to all complaints from the tenants and solve their problems. Communication between property management companies and the tenants is more comfortable than between the landlords and tenants. High-quality landlords/tenants SANGAU, a rental management company in Bangalore, have both fully-furnished and semi-furnished houses. They have a vast portfolio of Owner owned rental properties. Tenants would be able to secure high quality rental properties of varied pricing depending upon their budget. Before taking on property management of a individual owned rental property the property is well inspected and owner credentials verified. This ensures there are no legal issues faced by a tenant because of the owner during the tenancy period. Legally binding Owner contracts exist between the property owner and the property management company to ensure the Tenants have a peaceful and comfortable stay. Psychological benefits Renting through a Rent Management company reduce your stress, unnecessary hassles and other psychological issues. You need not stress about dealing with an individual, the landlord, who may at time behave irrationally and without human consideration. When dealing with a company the companies’ reputation is at stake and they ensure that terms and conditions of a rent agreement are not violated. The tenant does not have to worry about property maintenance and related matters as the company is responsible to well maintain the property on behalf of the owner. As it benefits the tenant renting from a property management company, similarly the owner also benefits when letting a property management company manage and maintain the property. They take care of all property maintenance and rent management and act as an intermediary when with a tenant. Time-efficient If you are renting through a rent management company like SANGAU, it will save tenant a lot of time when addressing maintenance issues. There are no repeated follow ups required when reporting an issue and maintenance works are completed in a timely manner. Similarly when the Tenant has to liaise with local authorities, resident owners association or utility companies then the company can assist the tenant with such tasks and ensure a hassle free stay for the tenant. Such assistance by the company helps tenants save their time which they may use for other productive work. Conclusion Due to the above mentioned advantages it is always beneficial to rent through a rent management company. It is not only secure and time-efficient, but tenant benefits from a lot of other professional services offered. SANGAU property management and rentals offer quality services for tenant looking for rental property in Bengaluru. So consider hiring them because they work for the common benefit of both landlords and tenants. Every property management company urges to bridge the gap between tenants and landlords. To do so, it is vital to build a decent property management portfolio comprising of the most prospective rental properties.
But, how to incorporate more and more properties on rent to your property management company? The key to growing your business is to keep your rental property owners happy. This is vital to build a long-term relationship and run a profitable property management business. Expectations of the Property Owners To keep the property owners satisfied, it is essential to understand what landlords expect from their property managers when hiring services from a reputed company for property rent management in Bangalore. Some of the basic things property owners expect from their managers include:
Tips to Keep the Property Owners Happy With these aspects in mind, we have herein coined the best practices to keep the property owners satisfied. These practices will help you to:
#1 Help the Clients to Find Good Tenants Every landlord urges to rent their house to a decent person/family. To keep up to this challenge, it is best for the Property Management company to conduct tenant’s background checks and screening before both parties sign up for the legal agreement. It is always peaceful and desirable to rent homes to noble tenants. It assures the landlord that they will pay the rent on time, will not cause any damage to the fixtures and construction, and maintain a quality relationship. #2 Regular Rent Collection and Deposit Renting the property is an investment for the landlord. Hence, their top priority is to get a regular income from this investment. This means they want to get the rent on time. As a property manager, it is not only your duty to collect rent from the lessees on time but also deposit it to the provided account of the landlord. #3 Get Things Done On Time If you are looking to build relationships, it is important to focus on the user experience of your clients. The renters, as well as the landlords, rely on their property managers for a lot of services. When they need repair work in the house, make it your priority to do it as early as possible. Unnecessary delay in the work after placing a request means you are creating a bad impression of the company. Ultimately, this can result in the loss of business in the future. #4 Integrate Technology into Your Work Process Do you feel that you have done everything but still not able to achieve success? Well, many property management companies fail to stay in the competition despite providing the best quality services to their clients. If this is the scenario, what’s the lacking factor? One of the most probable reasons is not keeping the things organized. This is where you need to incorporate technology in various spheres of work operations. Besides reducing the pressure, there are several other benefits of having a robust technological infrastructure for regulating property management services. The property management companies looking to improve the user experience for their landlords or add more clients to the portfolio can adopt the following measures:
In the age of smartphone, people find it convenient to find the desired information online. Having a portal with the list of vacant properties will attract an increasing number of tenants looking for an apartment for rent in Bangalore. Similarly, you can encourage the landlords to create their accounts on your website to keep track of the status of their property anytime anywhere.
The clients (property owners and renters) need to find the necessary information about their lease house. Several companies have achieved business success by integrating property management software to their official website. The clients find it comfortable to access the necessary information if you create a website with a clear and easy user interface. For instance, when a landlord having multiple properties visits the account dashboard, there should be every bit of information in an organized manner under proper sections. The Owner should be able to find:
To provide the best user experience, always keep all the information up to date for the clients to access it anytime. In this age, it is preferable to make your portal mobile-friendly provide convenience on all screen size devices.
Your clients may have several queries, requests, or grievances. The property management company’s core responsibility is to address all these communications as early as possible. But, how to ease the communication process for your clients? An effective way to keep the communications seamless is to use contact forms on your website. All your clients are busy people. Therefore, it is helpful to adopt a minimalist approach by keeping the contact form short and simple. Having easy to understand templates allows the clients to fill in all the details quickly.
It’s fine if you already have a website with updated information for clients- landlords as well as the tenants. However, it is also essential to send notifications regularly to your clients. For instance, the tenant may forget the date of the rent payment. You can send a reminder message via email or SMS one week before the due date. Likewise, you can also send a notification to the landlords when you deposit the rent into their account or when the tax statements are available for access on the portal.
Today AI systems can ease your job to a great extent while you can save time from answering queries and focus on important work. Having a rent calculator tool on your website allows the new visitors to estimate the monthly costs of renting a certain property. Suppose, a visitor wants to know the average cost of 2BHK for rent Bangalore, it is easy to find the details within a few seconds by setting some filters.
Every client is different and so are their preferences when it comes to using a mode of communication. Some people are comfortable when talking to a representative over a phone. Others may want to share their woes over a live chat and receive a response within a few minutes. Property management companies can thrive well with an active customer support team available to handle these types of communications. To address this problem, provide an email address, live chatbot, and at least one phone number on your website besides creating templates or contact forms on your website for various purposes. #5 Be Responsive and Responsible It’s good if you already have various modes of communication available for the clients round the clock. However, if you do not respond to these messages/queries, it can hurt your business. Your support team has to remain active to respond to all the emails, messages, and calls at the earliest. Even if you do not have a solution at the moment, at least inform them that you are taking steps to meet the request. #6 Adopt Early Measures to Reduce Costs Success in the property management business does not lie in problem-solving. Rather, the trick to staying ahead in the game is to anticipate them and take measures to prevent expenses. Doing periodical inspections, acting fast on the complaints, and scheduling maintenance work as needed are some of the measures you can take in this regard. #7 Quarterly Professional Inspection Conduct periodical inspection (preferably every quarter) on all the properties to find if maintenance work is required. Make early arrangements so that there are no major losses. This helps to reduce the cost of expensive repair works. Some of the benefits of periodical inspection are:
Conclusion Property management is a highly lucrative but expeditious and competitive business. One of the most significant factors impacting your success in the industry is the level of experience you provide to all your clients. I hope these practices will help your company to emerge as the frontrunner rental property management in Bangalore. Make these strategies a part of your daily business operations to start achieving results within a short time. Are you looking for an experienced property manager? Contact us today for a free consultation. All rent agreements usually requires payment of an interest free security deposit before the commencement of a rent agreement. The security deposit amount is typically equal to five to six month rent but it can exceed in some cases.
These deposits are refundable without any interest payment at the end of the tenancy agreement if the tenant has fulfilled the terms and conditions of a rent contract. Local laws are designed in a way to protect the interest of both the owner and tenant. Security deposit is an amount that safeguards the interest of landlords. It can be used against any intentional damages caused by the tenants or any unpaid rent. There will be no problem if the security deposit covers the amount of damage. But what if the other cost cannot cover the loss or unpaid rent? In those circumstances, the landlord or rent management company, like SANGAU could take the following steps. Communicate to tenants Don't rush and be patient. Communication can resolve a lot of problems. A good relationship between tenants and landlord or rent management company helps. In this regard, the company should communicate with the tenant that the security deposit cannot cover the cost of damages and they should pay the amount. This communication is also known as a Demand letter. A good tenant always pays attention to such communication to avoid legal issues. Legal Proceedings When the tenant doesn't respond to the demand letter, then there's no other option except initiating the legal process for recovery. A rent management company like SANGAU has its own legal staff to handle such an exigency. There are challenges when the dispute resolution is done with legal means. The legal case could be weak if there is a lack of evidence. The court decision is based on evidence and enough evidence should be provided for damaged property. A rent management company like SANGAU takes photos and videos of the property before handover to a tenant and hence it is easy to prove the damages caused by the tenant. Legal case is a time-consuming matter and requires the attendance of the proceedings during the case by parties concerned. Legal cases also incur court fees and lawyer fees. This increases the recovery cost due from a tenant in addition to the cost due to damages or unpaid rent. There are various ways by which a legal case might be avoided. These solutions are discussed below. Increase the deposit By increasing the security deposit amount the landlord or rent management company is on the safe side. It also helps them to identify only good tenants who will take care of their property to claim the security deposit at the end of the tenancy agreement. Negotiation To avoid inconveniences for all parties when going legal it is always better to not go to court and negotiate the matter out of the court. By discounting a small portion of the amount to be recovered there might be a possibility to recover the balance amount. The discounted amount could the equivalent of lawyer's fee and other costs. Collection agency Rent management companies hire collection agencies to collect the amount due from a tenant. Collection agencies charge a certain fee towards such services and it needs to be carefully evaluated if this is a cost effective solution. For more Details visit our website. Owners hire property managers to do the work that they either don’t have the time for, or think need to be handled by a second party. Handing over this responsibility means the owner trusts the manager to bring maximum profit from the property while attending to tenant requirements and complaints. As a property manager, it is of utmost priority to ensure the owner is content with the services you are providing. Here are a few tips that will give you an idea of how to improve your work and achieve owner expectations:
On close inspection, one would notice that owner satisfaction is not too hard to achieve. There is barely any additional work – it is more of completing allotted duties without leaving room for the owner to find mistakes or point out incompetency. Follow a structured to-do list, inform your owner of the work you accomplished profitably and wait for them to lean back comfortably in their chair with a slight smile on their face – that’s when you know you’ve done your job well. |
AuthorSANGAU is a Property Management and Rental company with operations in Bangalore. We are in operation since 2007 and provide services to property owners and tenants. Archives
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