How to determine Market Value (MV)

Market Value

Your aim to negotiate a substantial discount on a property can only be achieved by understanding and establishing the market value. There are several ways to work out the market value of a property.

Firstly, collect comparables in the area by researching property magazines, newspapers, websites
and similar properties on sale.
This process once collated, can be used to find the market value of a property.

Secondly, ask approximately 3 estate agents for their view on the market value of properties in specific areas. Once this information has been passed on to you, work out the average price.
This process can be employed for letting agents to find the rental value of a property.
You can also obtain records from the Land Registry of properties sold within the area and over specific time periods. However, there will be a fee for this information but it will give you a realistic picture of how much the properties are being sold for.

Homebuyer’s Survey
A Homebuyer’s Survey and Valuation (HSV) is a report accepted by the Royal Institution of Chartered Surveyors (RICS) as a credible way to determine the valuation of a property. This type of report covers many major structural defects that may be discovered in the valuation. The report also covers defects in the roof, loft space, flashing, chimneys woodworm, damp and dry rot plus other lesser known defects.
The HSV does not cover 100% of the possible problems that can occur within a property, however, the report is sufficient and thorough enough for the lenders to rely on for mortgage purposes.

Buildings Survey
A Buildings Survey is a very comprehensive way to establish the defects and valuation of a property. It generally covers a more detailed inspection and results in a thorough understanding of the state of a particular property. This kind of survey is better suited to properties with structural problems or a property that may have been empty for a long period of time.

What Does a Good Property Management Company Provide?

Property Management Company

A good property management company will streamline the process of renting your investment property and managing tenants. What differentiates the good from the bad comes down to some universal areas. This article outlines those necessary traits.

1. Responsive Service.

If a manager doesn't handle all incoming leads quickly, you can believe that they'll move on to the next place. In a market where the competition for renters is stiff, you need to jump on every opportunity. Also needless to say, they should be located within a reasonable distance from the property.

2. Ability to deal with all types of tenants.

Being a landlord sometimes requires less-than comfortable interactions with tenants. If you either can't bear with the idea of confrontation, this isn't the role for you. At the same time, understanding and compassion is a key trait. If you lose your temper easily or tend to act out of emotion, hire someone else. In the event that a tenant turns out to be a deadbeat, they handle the eviction process and legal proceedings for all damages.

3. Experience in Marketing and Applicant Screening (Judging the good from the bad).

One bad tenant can turn your profitable venture into a money pit. You will benefit from an established procedure that a property manager uses. Appropriate market analysis, tenant screening, statement accounting will ensure that your property is well-managed. In most states, a property manager must be a licensed real estate agent, which means they understand the laws and duties that are required.

4. Guru of Home Maintenance and Repair.

While much of the time will consist of quite enjoyment on behalf of the tenant, maintenance and repairs will occasionally be necessary. Whether it's unit preparation between tenants or a plumbing issue, the Property manager will supervise all work done by preferred vendors.

5. Value for Service. No Markups.

The industry standard is 8-10% of collected rent and 50% of the first months rent for tenant placement. While this will lessen your overall return, it ensures that you're property will be well-managed. There should be no markup on maintenance or repair, and any funds resulting from late-fees or penalties should be yours in full.

A Property Management Company is essentially a partner in your rental business. A company that exhibits these traits will become an essential entity and ensure you the best chance of success. Don't be afraid to contact multiple companies to find the one that best delivers on these crucial areas.