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Property254 by Tulia Real Estate

Author: Peris Gachago

  • Mistakes to avoid When Selling Your Property to Cash Buyers

    Mistakes to avoid When Selling Your Property to Cash Buyers

    If you need to sell your home quickly, working with cash buyers is one of the best methods. Always keep in mind that not all cash buyers are the same. Most sellers fall into certain traps, while some deals are abandoned as a result of a few mistakes. Are you planning to sell your property? In this article we will look at common mistakes to avoid when selling to cash buyers.

    1.     Asking too much money

    When selling your property to cash buyers, one of the pitfalls you should avoid is asking for too much money. Learn about the fair market value of your neighborhood’s properties and the homes that have recently sold in the area. It also establishes a restriction for you. When dealing with cash buyers, you should keep in mind that you’re unlikely to acquire full market value for your house.

    Cash buyers can help you sell your property quickly without having to take listing photographs, make renovations, or deal with brokers. You don’t even have to keep your house spotless in order to receive a decent offer. However, hiding the places that need repair is not recommended since it may reduce the cash buyer’s pricing.

    2.     Failure to create a move out strategy

    Another mistake to avoid when dealing with cash purchasers is failing to have a move-out strategy. Remember that one of the advantages of selling your home for cash is that the transaction may be completed in as little as a week or two. You must vacate your property as soon as they pay cash. If you don’t make such preparations, you’ll find yourself scrambling to figure out what to do or where to go. Prepare a move-out strategy, especially if you’ve opted to deal with a cash buyer, to avoid this.

    5 Crucial Factors to Consider When Selling a Property

    Make your move-out strategy many weeks before dealing with cash purchasers as soon possible. You’ll be more prepared for yourself and your things if you do it this way. It will also give you more time to look for a new home when you sell your home.

    3.     Choosing the wrong cash buyers

    With cash buyers, you may save more time when selling homes for cash. They may easily buy properties that are offered to them as long as they suit their requirements. However, one mistake might derail everything. As a result, you should always avoid cash purchasers who aren’t fair in their price and may make false promises. When looking for a cash buyer, do your homework and pick one that has years of expertise and a good reputation in your area. With a qualified cash buyer, you can expect a fair offer and a quick closing.

    4.     Spending huge amount on the home

    While it’s a good idea to keep your house in good repair, you won’t have to worry about that after you find a cash buyer. The reason for this is that if you sell your home to cash buyers, it’s unnecessary to spend a lot of money on it because they’ll buy it as-is. Cash buyers are ready to buy houses in any situation or condition. They’ll renovate old or out-of-date floor layouts to build lovely residences for the new owners. They are also investors that will buy your home as an investment property in order to maximize their profits.

    Avoid this mistake when selling your home to cash buyers if you don’t want to lose money in the long run. Renovations, on the other hand, are a worthwhile expenditure if you want to sell through a realtor.

    5.     Listing your property with a real estate agent.

    When selling houses to cash buyers, most people also make mistake of listing with real estate agents. You must realize that the technique you choose to sell your house can make a difference. A listing agreement is needed when you engage a real estate agent. This agreement might involve a contract with the agency that lasts for a set amount of time. For example, even if you find a buyer or use other techniques to sell your house, you’ll have to pay a commission charge. When selling your property in cash you don’t have to sign any agreement. They’ll handle the entire process of selling your home promptly.

    Also read: To hire or not hire a real estate agent in Kenya. The pros and cons.

    Conclusion

    You have complete control over how you sell your property. Selling your property on cash, is the fastest method. It’s also a simple, safe, and effective choice. Just make sure you find a reputable cash buyer to ensure a smooth transaction and the best possible returns.

    Related: Mistakes when selling properties in real estate.

  • Real Estate Agents commissions in Kenya: Understanding what Commission to Charge

    Real Estate Agents commissions in Kenya: Understanding what Commission to Charge

    What is Real Estate Commission in Kenya? 

    Real estate commission is the fee that real estate agents and brokers get paid as their compensation for the work they put in to help complete a transaction.  

    As RIS Media explores, real estate agents help clients with a variety of tasks throughout the buying and selling process, and compensation for this assistance comes in the form of a commission. The real estate commission also represents all the years of experience and training that the agent has cultivated to help the client get the best possible price for the home they want to buy or sell. This training and experience help them become critical experts in real estate transactions so that their clients have a strong representation at the negotiating table. 

    What Does an Agent Do to Earn Real Estate Commission? Real estate agents can help clients with a variety of different tasks that make it easier for them to buy or sell land or a home. A real estate agent will help clients with tasks such as: 

    1. Letting and management agent- A real estate agent may be involved in letting and management of rental or leased properties.

    2. Helping a client negotiate a mortgage.

    3. Daily research on homes – Real estate agents stay on top of the local listings so they know if a potential house a client is interested in shows up on the market. 

    4. The real estate agent will also help the client set up showings so that the potential buyer can see homes that will potentially appeal to them the most. This saves the client time and they can attend to other things.

    5. If the real estate agent is helping a seller, the agent will help them analyze the market so they know how to set a fair price. 

    6. The real estate agent helps sellers market the property so they attract the attention of the best potential buyers. 

    7. The real estate agent may help write offers for the properties listed for sale that clients want to buy or sell. When a client finds a home that fits them well, the agent will help them determine the best price to offer, negotiate with the sellers, and write up the offer to submit. There will often be negotiations with the home seller before an offer is accepted, and the real estate agent can help buyers understand and navigate the process; the client will have someone representing their interests. The real estate agent can also help sellers negotiate, ensuring that the client gets the best possible price for their property. 

    8. Help with due diligence -Due diligence is a critical part of the home buying process, as it will help new homeowners avoid large unforeseen costs and problems with the purchase. The real estate agent can help buyers set up and then work through this process.

    In Kenya, real estate agents either work in a real estate agency or can be solo agents. When working in an agency and an agent is formally employed, then they earn a salary that is determined by the contract of employment.

    Most real estate agents in Kenya earn a commission from sales. The commission is set by the Estate Agents Act (Cap 533). The commission to real estate agents in Kenya are payable in 5 scales as:

    1.     SCHEDULE Scale 1 Sale:

    This is paid on a graduated scale

    (a)    On the first Ksh. 100,000 10%

    (b)   On the next Ksh. 900,000 6%

    (c)    On the residue 3%

    Thus, if you are a real estate agent and help a buyer sell their property, above is the amount set in law.

    2.     SCALE 1A Purchases:

    This is also paid on a graduated scale

    (a)    On the first KSH. 100,000 5%

    (b)   On the next Ksh. 900,000 3%

    (c)    On the residue 1.5%

    Thus, if you are a real estate agent and help a buyer buy a property, above is the amount set in law.

    3.     SCALE 1B On Sales of Plant and Machinery:

    Ten per cent of the total value realized.

    (a)    SCALE 1C Sale and Purchases Effected by a Transfer of shares:

    (b)   Scales 1 and 1A shall apply undiminished by any loan or other charges upon the property or the Companys assets.

    4.     SCALE 2 LETTINGS

    Residential:

    (a)    Lease up to one year 7.5% of annual gross rent.

    (b)   Lease of over one year One months rent

    In-demand Real Estate Agents Skills Needed to be a Successful Agent

    Commercial:

    (a)    Sole agency 7.5% of annual gross rent

    (b)   General agency 10% of annual gross rent.

    Fees by negotiation if management services involved but not less than half scale.

    5.     SCALE 3

    (a)    For seeking and negotiating the tenancy or lease of a property to suit a clients requirements: The fees payable as per the appropriate letting scale and by arrangement if negotiations abort.

    6.     SCALE 4 MANAGEMENT

    Residential:

    a)      10 per cent of the gross rents or less according to the circumstances but not less than 5 per cent.

    b)      Commercial:

    c)       7.5% per cent of the gross rents or by arrangement but not less than 2.5% per cent

    7.     SCALE 5 Mortgages:

    For negotiating the terms of mortgages or charges as an intermediary between or on behalf of either of the principals:

    a)      In case of a successful deal, the agent is entitled to a negotiated commission but no fees.

    b)      Where agent is instructed to fund and negotiate a mortgage without handling the sale: Fees to be not more than 0.25% per cent of the capital value of the mortgage.

    If the above rates drive you to get into real estate, you can start by registering to list your property for free. Also remember to get your letter of authority to sell as described so that you do not miss your commission.

    As you continue engaging in real estate, remember to register with the Estate Agents Registration Board(EARB). This way, you have legal protection in case the seller does not meet their obligations. We have had cases of real estate agents getting low commission than what the law mandates since they were not registered as real estate agents in Kenya. If you are not registered, you risk losing your hard-earned commission and lack good legal support. You may also face legal penalties.

    Learn more about the benefits and how to register as a real estate agent in Kenya.

    Section 18 of the Estates Agents Act Cap 533, Laws of Kenya provides as follows: –

    1.       After the expiration of six months from the commencement of this Act or such further period as the Minister may, by notice in the Gazette, allow either generally or in respect of any particular person or class of person: –

    ·       No individual shall practice as an estate agent unless he is a registered estate agent;

    ·       No partnership shall practice as estate agents unless all the partners whose activities include the doing of acts by way of such practice are registered estate agents;

           (c) 

    2.       Any person who contravenes subsection (1) shall be guilty of an offence and liable to fine not exceeding twenty thousand shillings or to imprisonment for a term not exceeding two years or to both.

    While the above is developed for a general understanding, it is not meant to be legal advice. Do not hesitate to contact your advocate for legal help. If you need one, you can real out to us on 0726982982 or on email [email protected].

    Do I have to pay KRA any withholding tax for my commissions?

    Yes, management or professional fees attract a withholding tax of 5%. You will also be required to declare your income(s) and the withholding tax details when filing your annual tax returns and to pay any tax balance due.

  • Services Offered by Ardhisasa Digital Platform

    Services Offered by Ardhisasa Digital Platform

    Ardhisasa is an online platform that allows Citizens to interact with land information held and processes undertaken by the government. What are the services you can access from the NLMS digital platform? Below is a look at them:

    Land Registration

    This is one of the services you can access on the NLMS is land registration. It deals with several things such as:

    •  Application for issuance of cautions and restrictions and registration of executors
    •  Leases short term and long term
    •  Registration of title deeds and leases
    • Replacement of title deeds
    • Land searches and transfer of title.

    Other services under land administration include the registration and termination of joint ownerships and stamp duty-related issues.

    Land Administration

    Services offered under land administration include:

    • Paying of land rents
    • Subdivision of land
    • Preparation, renewal, and extension of leases
    • Changing or extending the rights of use on a land.
    How to Create an Individual Account on Ardhisasa

     Physical Planning

    Physical planning services include the application and approval of development plans for various intended uses on a parcel of land. You can also receive a certificate of compliance for development projects, provided they meet the required provisions.

     Survey And Mapping

    Survey and mapping services include:

    ·         Subdivision or amalgamation (joining of two pieces) of land

    ·         Issuance of new grants and allotment letters

    ·         Surveying and re-surveying of land to issue and confirm boundaries.

     Land Valuation

    Land valuation services involve the valuation of a parcel(s) of land for purposes of asset valuation, government land leasing or purchase, estate administration matters, or arbitration matters.

    Ultimate guide to understanding Ardhisasa

     Adjudication And Settlement

    Services include dealing with adjudication and settlement of land dispute matters.

    Land Allocation

    You can also access land allocation services on Ardhisasa, a docket handled by the National Land Commission.

    For enquiries, please visit Ardhi House, Off Ngong Rd: P.O. Box 30450-00100, Nairobi,Kenya or email: [email protected]. The ministry can also be reached on phone: 0743922876.

    In case of more information, keep visiting our website www.premieragent.co.ke or call us on 0726982982 or on email through [email protected]

  • How to add Property on your Ardhisasa Account

    How to add Property on your Ardhisasa Account

    Any individual registered on Ardhisasa can make an application for adding property on behalf of a property owner. However, they should list the owner or owners using their Ardhisasa ID/National ID/registration numbers as the proprietors (owner).

    Click on My Properties button from the left side panel to add a property you own using your Ardhisasa ID

    Select the type of ownership which is either sole, joint, or proprietorship in common.

    Add all the proprietors.

    How to Create an Individual Account on Ardhisasa

    Provide the property details and upload a copy of title deed.

    For enquiries, please visit Ardhi House, Off Ngong Rd: P.O. Box 30450-00100, Nairobi,Kenya or email: [email protected]. The ministry can also be reached on phone: 0743922876.

    In case of more information, keep visiting our website or call us on 0726982982 or on email through [email protected]

  • Best Guide to Real Estate Taxation in Kenya

    Best Guide to Real Estate Taxation in Kenya

    Real estate taxes in Kenya are levied and paid to state and county governments. The funds generated from real estate taxes are used to help pay for local and state services.

    Below are some of the taxes charged, both by the national and county government relating to land;

    1.       Land Rates

    This is a tax imposed by county governments within a municipality or township. Rates are payable in respect of services such as water, sanitation and sewerage services provided by the county. The imposition of rates is provided under the Rating Act while the Valuation for Rating Act empowers the county governments to value land to determine the rates.

    2.       Land Rent


    Land rent is levy imposed on leasehold parcels of land where the annual rent has been reserved at the time the grant is being issued and its payable to the Ministry of Lands and Physical Planning

    3.       Income Tax 

    Income Tax Act (ITA) provides the framework for imposition of taxes on income from among others land. The main income taxes payable in respect of Land are Capital Gains Tax (CGT) and tax on rental income.

    CGT is a tax chargeable on the gain on transfer of land, building and shares. This tax was re-introduced in 2015 having been suspended in 1985. CGT is charged at the rate of 15% of the gain.

    The tax on rental income is a tax arising from the gains and profits for occupation of property. The ITA provides for various ways of taxing rental income;

    Where the rent is payable to a non-resident, the tenant is required to withhold 30% of the rent and remit it to the Kenya Revenue Authority. The tax withheld is a final tax.

    Types of Title Deeds In Kenya and How to Obtain Them

    Where the rent is payable to a resident, if the property is commercial, the tenant being an appointed agent, is required to withhold 10 % of the rent. The tax withheld is not a final tax and the landlord is required to file their income tax in the usual way.

    Where the rent is payable to a resident and the property is residential, the landlord may opt to either pay a monthly rental income tax, computed at 10 % of the gross rent a (final tax) or pay the instalment tax and final income tax in the usual way.

    4.       Stamp duty


    Stamp duty, provided for under the Stamp Duty Act, Cap 480, is a tax payable on various instruments. Stamp duty is charged on instruments relating to land such as transfers, charges and leases on land. The rate of stamp duty is based on the instruments, the user of the property and the time of payment among others. There are various exemptions to payment of stamp duty granted under the Stamp Duty Act.

    5.       Value Added Tax (VAT)

    Value Added Tax (VAT) is chargeable on commercial rental income and is charged to the tenant at a rate of 16%. Under that Value Added Tax Act, VAT is payable on the sale of commercial land at the standard rate of 16%.

    Capital Gains Tax on Real Estate

    In 2018, however the High Court ruled that VAT is not payable on the sale or purchase of land, irrespective of the nature of buildings standing (whether residential or commercial). The high court relied on the VAT Act (VATA) 2013, that specifically exempts the ‘supply by way of sale, renting, leasing, hiring, letting of land or residential premises’ from VAT. It will be interesting to see the results if/when KRA appeals this verdict.

    As property taxes play a crucial role in home ownership, this should be a key area of consideration by policy makers to ensure that the objectives of the affordable housing agenda are realised as envisaged by the Government. The tax regime in Kenya can be quite confusing unless you are a seasoned real estate or tax professional. Please seek expert opinion when conducting your real estate transactions. You could alternatively give us a call for a free consultation.

  • Ultimate Guide to Monthly Residential Taxation of Rental income in Kenya

    Ultimate Guide to Monthly Residential Taxation of Rental income in Kenya

    Residential rental income, also known as Monthly Rental Income (MRI) refers to income derived from renting out residential properties for use or occupation. This tax applies to individuals and corporates with residential property only. Effective 1st January 2021, the Finance Act 2020 requires every resident landlord receiving rent income of between Kshs. 288,000 (Kshs. 24,000 per month) and Kshs. 15 million per annum are obligated to file and pay for MRI at 10% of the gross rent received either monthly, quarterly, semi-annually or annually. The return must still be filed monthly. No expenses, losses or capital allowances are allowed for deduction from the gross rent at the time of filing the return. Therefore, a landlord earning gross rent of Ksh. 100,000 in a month will be required to pay rental income tax at the rate of 10%, that is 10%*100,000=10,000.

    Capital Gains Tax on Real Estate

    Taxpayers within this bracket who wish to remain in annual rental income tax regime may do so by requesting the Commissioner in writing. The MRI return is filed on iTax or using the new KRA M-service App , on or before the 20th day of the following month. For example, rent received in January is declared and tax paid on or before 20th February. Further, any month that the landlord does not receive any rent, he/she is required to file a NIL return. You can pay via Mpesa by using KRA PIN number 572572 and the account Number been the Payment Registration Number quoted at the top right corner of the generated payslip.

    Landlords with rental income below Kshs. 288,000 or above Kshs. 15 million per year and non-residents shall file annual income tax returns and declare rental income together with income from other sources. 

    Best Guide to Real Estate Taxation in Kenya

    Residential rental income is final tax. This means that, any income from rent that is subject to residential rental income tax is not liable to any other tax under the Act and therefore, persons are not required to declare the same in their annual income tax returns.

    Late filing of MRI returns attracts a penalty of 2,000 or 5% of the tax due whichever is higher for individuals and 20,000 or 5% of the tax due whichever is higher for corporates and subsequent interest of 1% per month on the unpaid tax until payment is made in full.

    Penalty on late payment: 5% of the tax due and late payment interest of 1% per month on the unpaid tax until the tax is paid in full.

    As you engage in real estate, its always important to consider the impact of taxes on your transactions. To remain compliant, please consult your tax or legal expert. For more information, please call David Ndiritu on +254 721 949 580 or via email on [email protected]

  • Land Owners Guide to Land Rates and Land Rent Payment in Kenya

    Land Owners Guide to Land Rates and Land Rent Payment in Kenya

    In Kenya, county governments have legislative authority to levy property taxes to finance some of the costs of the services they provide. Land tax is one of the land taxes imposed and varies depending on the location and size of the land e.g. Kshs 1,000 per hectare per annum. Land tax is levied only in designated urban areas while most agricultural land is not taxed. This tax applies equally to land whose title is on freehold and on leasehold basis.  Land rates are charged on each parcel of land and payable to the county government. land rent is imposed on leasehold parcels and is paid to the ministry of land and physical planning through itax.

    Land tax varies by county with Nairobi having the highest rate of 8% of the value of land. Governments make decisions on the commercial value of the land. This amount is payable in most county cash offices. Upon full payment of all rates, one is issued with the rates clearance certificate which is conclusive evidence that all rates due and interest accrued have been fully paid.

    How to pay your land rates online in Nairobi

    To pay your land rates online in Nairobi, you will first need to register on NCCG epayments Portal  or using the USSD *217# on your phone.

    After registering on the online payment platform:

    Log into your account

    Find the land search option by clicking on the ministry of land and urban housing

        III.            You will be prompted to enter your title number. Complete the form submit it

    Confirm your details and make the payment for the required amount

    If the payment is successful, you will have the option of printing the payment slip.

    Best Guide to Real Estate Taxation in Kenya

    To search registered owners, pay for land rates in Kiambu, please visit the Kiambu County Portal.

    Land rent on the other hand is a levy imposed on leasehold parcels of land where the annual rent has been reserved at the time the grant is being issued and its payable to the Ministry of Lands and Physical Planning under Sect 28 of the Lands Act. Land rent clearance certificate is a document that serves as evidence of payment of land rent. It is issued upon application and payment of all the outstanding land rent levies. The Land rent clearance certificate is valid for one year.

    How to pay land rent.

    The process is quite simple because it is done using any type of mobile phone. Here are the steps that you should follow;

            I.            Register by sending an sms with the word lands to the number 21504. An SMS confirming your subscription to the land service will be sent to you.

          II.            Dial *512# so as to access the service.

        III.            You will receive a prompt asking you if you want to continue registering. Note that you will be charged Kshs 5 per sms for this service.

        IV.            If you choose to proceed, you will receive another prompt with the options such as registering your land, land tracking and land rate payment.

          V.            For the case of the land rate, you will be required to enter your land reference number, I.D number and to confirm your details.

        VI.            You will then receive an sms with your payment options.

    To pay land rates online:

            I.            Open the browser and visit ecitizen then sign in or sign up to your registered account.

          II.            Click on the ministry of Land and Urban housing development to click on the land search.

        III.            Then just enter your land title number, fill the online form and then submit it. Confirm the details that have been entered and then proceed for making the payment.

        IV.            Once the payment has been confirmed then you will have the option of printing the results.

    An advantage this tax holds over other taxes is that its assessment is simple to understand and to execute. It does not require complicated methods of calculations and assessments. Further, the collection and assessment costs are usually low. The tax rates are varied across regions to take account of the property location. This way, properties in developed counties can be charged more while developing counties charge less which promotes equity.

    A disadvantage is that the value of property is subjective leading to the tax amount not being reflective of the value of the land or its actual productive capacity and may punish the registered. Due to at times the low nature of the tax, it does not encourage optimal utilization of land.

    In summary:

    The case for taxing land in both urban and rural areas in Kenya is strong and compelling. In Kenya, while most people already understand the need to pay land rates, most land owners only pay land rent on transfer or charge of their property. Any owner could lose their property for default of payment of Property tax and accumulation of penalties levied. In case you are a landowner and your schedule doesn’t leave time to visit county governments 

  • 7 Tips on how to become a successful landlord in Kenya

    7 Tips on how to become a successful landlord in Kenya

    Landlord and investors know that owning rental properties is one of the best ways to generate a steady cash flow while capturing long-term growth. The big question is how to get from deciding to buy a rental property to actually renting it out and managing the day-to-day tasks that come with being a successful landlord. There are several important steps you need to take to ensure a smoother process and protect your long-term interests.

    1.      Target the right tenants

    2.      Screen the potential tenants

    3.      Use the right forms

    4.      Enhance Professionalism

    5.      Manage the tenants issues well

    6.      Stay up to date with landlord law

    Target the right tenants

    Choosing the ideal tenant is always the number one tip for becoming a successful landlord. Whether you already own a home or are considering buying a rental, the first thing you should do is decide what you want from the property. So how can you determine which type of tenant is the best fit for your property? Tenants can be divided into three categories. In order to assist you better grasp the differences between them, we’ll go over them in detail here.

    Young professionals.: People in their twenties and thirties will either live Due to the fact that they are earning a full-time salary, they will typically want something of a higher standard than student housing. The majority of young professionals don’t have a lot of money, so they’ll want to live close to the city center where there are plenty of amenities.

    Students: Students want to save money and have fun. A furnished apartment near the university or the city center is a must-have for them. A basic set of furnishings is expected by students. Each year or two, the students will move out, and you should expect that they will not take good care of your property

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    Families: Space is a significant priority for them. There should be enough room for bedrooms as well as outdoor enjoyment. They may be on a budget, but they want a safe and presentable place to live for themselves and their young children. They will want to make your property feel like their home, just like young professionals, so don’t furnish it and let them paint or decorate the walls. The more at ease they are, the longer they will stay.

    If you’re renting out a property, it’s crucial that it matches the type of tenants you’re hoping to attract. To attract more tenants, your property should have good access to public transportation and meet certain quality standards. Before you start looking for a property have a target tenant or it will be difficult for you to find a suitable tenant or to earn the rental income you desire. If you want to attract the best renter, you’ll need to use a range of marketing strategies. They include newspapers, flyers, internet and other sources.

    Screen the potential clients

    If you want tenants who will take care of your property and pay the rent on time, you need to do a thorough background check on each tenant. You are putting your investment at risk by ignoring this step, which can lead to numerous headaches and costs down the road. Investigate potential tenants if they have a criminal history, employment and rent payment history. In the event that you only avoid one risky tenant, the cost of hiring a screening company to conduct a thorough search in accordance with the law is well worth the investment.

    Use the right forms

    Once you’ve found and secured the perfect tenant, it’s time to formalize the arrangement with a lease agreement. Landlord-tenant agreements should be state-specific and comprehensive, clearly outlining the duties and responsibilities of both parties. These steps are crucial if the connection between you and the tenant breaks down. To be a successful landlord and to avoid this, make sure your lease and the signing process are as flawless as possible before you sign it off. Below are terms to include in lease or rental agreement:

    •  Names of all tenants and occupants
    • Description of rental property
    • Term of tenancy
    • Rental price
    • Security deposit and fees
    • Repair and maintenance policies
    • Rules and important information
    • Contact information.

    Enhance Professionalism.

    As with any other business, property management requires the right professionals to run it. The landlord can manage a few small units on his own, but others will require a team of people. In the case of a landlord with multiple properties, it is impossible to play multiple roles at once, such as accountant, caretaker and manager, and you will undoubtedly fall short in at least one of these. Hiring professionals is essential. If you want someone to handle your rental income, hire an accountant. He’ll effectively manage the accounts, allocate budgets and pay expenses, and give you the monthly report.

    In order to be successful landlord, be aware of legal and statutory obligations at any given time. There’s a lot to keep track of, so it’s a full-time job to keep up. Think about paying a real estate agent to manage your properties until you get your bearings in the world of buy-to-let.

    Manage the tenants issues well

    It doesn’t matter how well-trained your tenants are at the end of the day, when rent is late, a tenant gets into an argument with the landlord or breaks a lease. They will complain and make demands. They may even need to be evicted. You will also need to have a plan in place for when your property breaks down and needs repairs. Landlords deal with these situations every day as part of the business. Hiring a property manager will help you solve the small issues tenants may experience when the landlord is not available.

    Stay up to date with landlord law

    The laws governing landlords and tenants should also be understood. Landlords must perform certain duties and provide certain services, regardless of the state laws in place. A successful landlord you must adhere to five basic obligations, regardless of where they own rental property. As a general rule, the five main duties of a landlord under landlord-tenant law are as follows:

    • Security deposit.
    • Ownership Disclosure
    • Taking Possession of the Property
    •  Maintenance
    • Liability

    Bottom line

    Being a landlord is a lot of hard work. At the same time, it can be rewarding and profitable, as well as exhausting and frustrating. Success is more likely when you take the steps outlined above.

  • How to find tenants for your homes and reduce Vacancy rates

    How to find tenants for your homes and reduce Vacancy rates

    In today’s market, there is certainly no shortage of renters. However, for the landlords, it is about finding the right tenants for their houses who will treat their houses like theirs. Most landlords always strive to fill their properties with reliable clients who will pay the rent on time every month, keep the property in good condition and as well follow the rental agreement policy.

    Some Landlords always looking for long-term tenants so they don’t have any trouble looking for tenants each and every month. As much as they try it is not always easy to find such tenants but the outcome always is worth the effort. By complying with the fair housing laws, online advertisement, creating specific tenants screening criteria, and checking potential tenants’ credit scores. Landlords will always look for these tenants and always meet them.

    1.      Don’t forget to advertise.

    Advertising is always mandatory for rental property owners looking to impress tenants. This can be done both online or even by putting notes on the entrance for tenants to see. Advertising can be done through neighborhoods to help do posting on social media or newspapers. This makes your property to be seen by various people hence increasing the number of tenants knocking on your door.

    2.      Offer Building-wide fiber-optic internet connectivity.

    Offering high-speed internet is critical to your tenant’s business operation. Fiber optic carries a significant advantage above regular speed broadband with increased consistency speed and bandwidth. Connection adds an average of 3.1% to the property value. This will add good tenants more so people working from home will benefit from your property as you benefit from them.

    Performing a good fiber installation in your property is a powerful marketing tool. Your tenants can save money on installation while making good use of the available one. The value of your property will increase more so if your coactivity is of high value.

    3.      Setting your Rent Price.

    Once you have known how to find your tenants, you will net to set your price range or the type of houses that you have. You will want your price to be competitive with the market. You will have to consider covering your expenses so that when setting rental prices, they are catered for. While setting the price you have to consider your worthwhile return on the investment.

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    Try to do research and investigate in rent analysis soft were to help you accurately price your property for your tenants. Consider working or checking the rental prices more so seasonably. When there are winter months tends to be below, so the house price has to be lower.

    4.      Getting Photos to Find Good Tenants.

    Always include multiple photos include photos of all major rooms to show the clients. Make sure it is tidy and the photos show the best elements of the property that will attract the tenant. Make a photo with good lighting meant that you will consider taking the photos during the day considering natural light. Higher a professional including a floor plan. While taking photos to show the tenants consider including video tours to show more around the house the good climatic environment.

    Keep your property description concise. Use short sentences and paragraphs and make sure the text is clear. Avoid using all caps and exclamation marks and ensure the listing is grammatically correct.

    5.      Hire a Property Manager.

    An experienced or professional property manager or a rental agent knows how to find renters so first. They have the real estate knowledge to help the company set the rental prices, the marketing experience will help reduce the time your property stays vacant, and training to re-organize red flags when reviewing applicants.

    Hiring a property manager or a rental agent is one way to find tenants for your rental property for they have good and technics on business language. Advertising your property will be much easy for them for they have a good experience to fill the houses with the tenants of your choice.

    6.      Sign new tenants to lease.

    Having your new tenants signing a lease agreement form is a very important way of protecting your property and your tenants as well. This is to ensure that your clients are protected and what is protected of them. Using a digital lease is an easy way to take care of this crucial step.  Always check and consider the key points. Always review your property rules and requirement to make sure your tenants understand them.

    Make sure both you and your tenants receive a copy of the lease. This will make your tenant be more respectful and stay for long because of good management. Make sure they meet your needs and state and federal requirements.

    7.      Understanding the Laws.

    Do research on the federal and state laws that covers both the landlord and the tenants. With this, you will have long-term clients who are safe because they are protected by the law and this adds value to your pocket. The fair Housing act specifically outlines constituents illegal discrimination against qualified tenants. It also protects people with disabilities in case you have one tenant this will be important.

     Summary.

    Finding trustworthy, reliable, respectful tenants is key to running a successful rental property. Make good advertisements for your home and ensuring cleaning is a priority to good tenants and this should be observed. Learning to find tenants mans a lot like understanding your business and working out towards making a good profit.

    Tenants are people to be attracted with good work, learn how to communicate to them and your homes will ever be occupied hence maintaining the work of real estate industry.

  • The Ultimate Guide to Managing Properties Successfully

    The Ultimate Guide to Managing Properties Successfully

    1.      Communication is Always Key.

    Managing property, the right way is all about transparency, hard work, and communication. Because at the end of it all you have to set the right expectations by going the extra mile of ensuring you have clear lines of open communication. Communication here is the key. Every single dispute affecting the company is solved through communication and determining just what the problem is that a solution needs to be found. When one manages a company the right way, it not only increases your market but also increases your business with referrals and great reviews. You have to be available and respond in a timely manner. Set up templates or a portal on your company website in which anyone who needs will get you. It also makes you receive and respond to any complaints.

    2.      Always Stay Positive.

    Being a property manager means dealing with a lot of different people. And not everyone you meet will give great energy in return. But our property management tip is to maintain a positive attitude even when things get rough. You will realize when working with real estate investment, the market could one day be on your side and the next day there is a change. Property managers need to understand the market and get to know that this is a normal part of the industry and keep a positive and realistic outlook.

    3.      Having a Professional Decorum, Stuff, and more

     The property manager must be physically present visiting all the buildings at least weakly. Managing employees means putting them on their toes and flexible visitation schedules help prevent a building from falling into disarray.

    The manager should provide support to the building suppers and staff. A property manager has to do what is best for the building and the community as a whole. A good manager always acts professionally. You will be dealing with different people some doctors, lawyers who deserve a lot of respect as any other person could need. Good communication skills needed to be applied everywhere while understanding all duties that everyone should perform.

    4.      Set Price and Expectations.

    Once an entrepreneur has control over your property and feels that it is ready to be rented out, you need to set up your rental prices and expectation as a manager. Conduct some research about the average range of prices and the number of properties available.

    5.      Big Repairs.

    For an inventor to make sure that his managerial working is moving the right way, you have to always check your properties and ensure they are in the right position. You will be needed at one point to conduct different repairs in different sections of the house.

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    6.      List of Tenant Requirements.

     In addition to deciding on your monthly income, you need to determine what requirements tenants would like in your property. Always keep in mind that it is illegal to discriminate against tenants. If all those are put into consideration, then it is the right way to manage a property.

      Writing and Reviewing Rental Contract.

    Once you have a tenant in mind, it will be time to sign the rental contract for this is another good way of managing a property. You will have to hire lawyers to ensure you don’t miss out on any crucial detail for this is a great idea for property management. Be sure and come to common agreements with the tenants to create a good business flow. Eviction procedures, maintenance details have to be set clear to all your clients.

    7.      Regular Maintenance.

    All properties will need some maintenances that have to be checked. From simple plumbing repairs to light fixtures, you may expect a tenant call with any issue and that has to consider for good management. Have a good list of contractors who won’t let you down, specific maintenance fund schedule regular check up on your property for this helps in maintaining the property.

    8.      Evictions.

    No managers or landlords would want to end up in this position but it is possible that one time your property has to go through this. What to do is to ensure that you follow all the required rules. Save yourself from troubles and instead follow basic steps such as.

    • Give an official notice
    • Read local laws to be sure you don’t break any rules
    • File the eviction with the court if the notice terms are not met.

    These are some guidelines you need to check as a good manager to keep your property under the law and in good managerial conditions. If a manager checks out the required instructions to manage a property, then definitely, he or she is doing it the right way to secure the business and to protects the clients because both as important in the real estate industry.

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