Questions To Ask A Rental Property Manager

 

Investing a rental property is a wise decision for investors. For one, even if the housing market becomes unstable again, the investor can still see dividends on his or her investment due to the rent. Also, a housing market collapse can mean more people being forced out of their homes thus making rental properties hot commodities.

Unfortunately, managing a rental property is not as easy as some people may paint it to be. There are a lot of things that a rental property manager has to oversee including background checks for prospective tenants to advertising the property to paying attention to small repairs.

If you are therefore an investor and you cannot afford to oversee the operation of the property at a regular basis, you might need to hire a rental property manager. Since you will be giving them an almost free reign on your property, it is strongly recommended that you take your time and learn as much as you can about a particular company or individual before hiring them to manage your investment.

Once you sit down and have a talk with them, there are several questions you should ask them so that you would glean as much information as possible to help you make your decision. One of the more important things to ask is how much would they be charging you. Usually, the fee is determined as a percentage of the gross rent for the property. Make sure that during the initial conversation, you would already have a clear picture of what you will be paying them.

An experienced rental property manager would be great to work with as you can easily ask other investors working with them about the services being rendered. Ask the property management company what other properties they are managing and if you can visit them. It would also show you what type of properties they are managing. If they are handling a property similar to yours and they are doing it exceptionally, you can have a better feel of how they are going to treat your business.

If you are just starting out in the rental property business, it would be a good idea to ask them how they will handle the advertising of the property. It would be a good idea to know beforehand what options are open to you and how much these advertising options would cost you.

There would always come a time when something would need fixing in your property. In some cases, the rental property manager would be given plenty of freedom in these matters. You could opt though to set a limit on how much they can spend without needing your approval. This is especially helpful if you want to handle major repairs in the property which would need more funding.

Reporting is also very important. It should be clear from the get-go how often they would send their reports to you. This way, both parties can avoid miscommunication. Plenty of rental property managers and owner relationships have gone sour due to simple misunderstandings due to lack of communication.

Make sure to ask these questions and you would have clearer picture of who you would be dealing with and what kind of company you will be giving access to your business.

Buy only at Below Market Value (BMV)

Below Market Value Property

Unfortunately most people believe the profit is made when they sell their property – this is not true. Whether you decide to buy-to-sell or buy-to-let, the bulk of the profit in property is made when you buy therefore you must ensure that the property is purchased Below Market Value.

Avoid the temptation to purchase the property at the asking price from estate agents or after viewing the first property. You will find there is no profit to be made.

Aim for at least 20% return on your investment.

Once you have completed your research on the local areas, gathered the information on similar properties and established the market value of your intended purchase, confidence should enable you to offer 20% below the market value. Taking a confident approach will replace any emotional feelings in reaching your purchasing decision. Remember, you are in property investment to make a profit.

Purchasing at below market value will eliminate up to 95% of properties on the market. Being prepared to complete the leg work and source the profitable 5% of the market will reap rewards.

Recent Developments in Mutation at Kolkata Municipal Corporation

Kolkata Municipal - Property Management

Mutation is a complex legal obligation related to property ownership and inheritance. Mutation is essentially a certificate of the revenue record for transfer of the property from seller to buyer. The process of mutation is quite lengthy as there are a number of legal procedures. The Kolkata Municipal Corporation provides enough data on and off line to achieve a friendly customer care relation.

• KMC has a particular form generally known as A-42 form for mutation purposes only. This application form for mutation can be found in the Central Record Section of the CMO house. The A-42 form can also be obtained from Gariahut and Behala Kolkata Municipality Corporation offices.
• For mutation, the Law, Revenue and Collection Department grants a No Objection Certificate, commonly known as NOC to the mutation applicant. This document must be attached with the mutation application that is written on a clean white sheet. The Premises and Assessee number should be mentioned in the paper.
• If the property is an inheritance then the original death certificate of the actual owner and an affidavit declaring the existence of the heir and proof of no other heir existence should be placed for mutation.
• For testamentary succession, a court of law issued probate must be submitted.
• All these ownership documents of inebriated land or hose, records of acquisition or mutual agreement, Deed of gift should be back to back photocopied and supplemented to the appropriately filled A-42 form.
• The site plan of the given area is mandatory to produce when required by KMC. Regarding amalgamation an NOC is necessary for each premise in question. A processing fee of three hundred rupees is charged at the specified section of the KMC.
• For, the due KMC tax the owner of the premise can appeal for separation with an affidavit stating the share proportion of the parties engaged.
• The laws of separation are also implemented to the residents of multistoried buildings for proportionate tax balance. They need to submit individual mutation form.
• An attested photocopy of share certificate and approval statement of DRCS is needed for Co-operative Housing residents along with the mutation form.
• The unassessed land or property of ward No. 101 to 141 under Kolkata Municipal Corporation attested photocopies of LRO and BL mutation certificate, land reference record, sketch of location of the property along with nearby transportation booth, nearest light post number and KMC referred premise no. should be submitted properly.
• A self and LBS attested blue print of the property with the specifications could be produced for mutation. At times the master plan sketch is also asked for by KMC.

The documents of ownership and other related articles must be inspected fully so that nothing is left.

Recently, KMC has been actively working to bring out a three-day mutation plan for all the pending mutation cases into fast track. The proposition aims to root out corruption from the grass root level. Now an applicant is enabled with the power to complain against any person who seeks or offers bribe or any employee who neglects his or her duty slowing down the procedure. The bill promises to deal sternly with any complains and if found guilty the offender will be punished.