With so many emerging ways of investing options, the real-estate sector has never been more lucrative. The new investment opportunities provided by Real-estate Investment Trusts (REITs) and Fractional Ownership (FO) in commercial properties have made it possible for smaller investors to experience high returns on commercial grade A properties that were previously out of reach. In this article, we discuss fractional property ownership and REITs as two such alternatives. Through this, readers will learn what each option is and their pros and cons. What is Fractional Property Ownership?In its most literal sense, fractional property ownership refers to a stake in any asset. Just like owning a percentage of a company's equity shares makes you a part-owner, fractional ownership in real estate lets you invest in shares of real estate properties, where you own the share of the property based on the amount you have invested. What is a Real Estate Investment Trust?REITs are a great way to diversify any investment portfolio. These firms offer higher returns to investors by owning and managing large real estate projects that generate income from rental or development activities. Besides, REITs allow mutual funds to distribute profits to their shareholders; under taxation rules, 90% of all taxable gains must be returned in accordance with investor’s ROI expectations. Fractional Property Ownership vs REITs: Pros and ConsTo fully consider the pros and cons of fractional ownership and REITs, it's best to compare the two on their major offering points. 1. Property Type The fractional investment model allows investors to purchase both existing and under-construction properties. According to REIT operational rules, at least 80% of a REIT's investment portfolio should be invested in income-generating properties. This means investors need to purchase existing assets. 2. Capital Requirement The first thing to consider is your investment capacity or capital requirement. Fractional ownership requires a minimum investment of between 10 to 25 lakhs. However, the figure may differ depending on the property type and value. The initial capital to be invested in REITs depends on your ability. You can make even smaller investments on REITs. 2. Lock-in Period Fractional property ownership doesn't have a defined lock-in period, meaning that investors can sell their shares anytime they wish. Investors are free to sell their stake in the property at any time. However, some work may be required to determine the valuation of the investor's stake. Publicly traded REITs don't have a defined lock-in period either. This gives a REIT investment a fair amount of liquidity. However, investors may be constrained by changes in the market value of their asset and can only profit if the shares are sold at a price higher than what was paid. Lock in period for sponsors and sponsor group members of REIT have a lock in period of minimum three years. 3. Hidden Charges Regulations mandate that REITs must distribute at least 90% of the net distributable cash flows to their investors to avoid scams. With fractional property, there is a complete distribution of the net distributable cash flows (post taxes, etc.) This is because the fractional company doesn't impose any hidden charges. However, it charges a small fee for its property management services. 4. Transferability Investors in a fractional property ownership model are free to transfer their fractional ownership stake. REIT investors don't directly own property. Thus, they cannot transfer property ownership. However, they may sell their shares at any time. 5. Diversification Investors can control the diversification process with the fractional investment option. They have complete control over which properties and asset classes they invest in. REIT investors achieve diversification through share purchases. Since REIT portfolios are diversified by the real estate market and real estate sector, investors are not actively involved in portfolio construction. 7. Valuation In a fractional property ownership investment, the property is valued at regular intervals so that investors know the value of their investment. This is especially helpful when unit holders need to sell their holdings. REITs require property valuations at least twice per year. Also, the stock price of publicly traded REITs fluctuates constantly and can be found by looking up the ticker symbol for the REIT. 8. Volatility In a fractional ownership model, the property is valued on a monthly or quarterly basis. Therefore, values tend to be less volatile. During periods of economic distress, the share price of publicly traded REITs can experience significant fluctuations even if there are no substantial changes in the fundamentals of the underlying properties. 9. Time Horizon It's very important to understand the time horizon for the investment. Neither investment option has a lock-in period; however, the time horizon should be longer to earn decent returns. You may not reap the full benefits if you exit a REIT investment in the short term. Similarly, it takes some time for the returns on a commercial fractional ownership property to stabilise. Which Is The Better Investment?With so many differences between the two real estate investment options, it's normal to wonder which is the better investment. The truth is neither is objectively better than the other. They are both capable of producing healthy returns. However, each commercial real estate investor has unique preferences, risk tolerance, and time horizon. Therefore, one of the two alternatives may be a better fit for a person's needs. Also, each investor must conduct due diligence and select the best option suited to their specific situation. About PropertyAngelPropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. Contact us at (91-80-47095974) or (91-7406484455) if you need guidance on how to invest in the right property in Bangalore.
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In 2022, the Indian currency depreciated by 5.2% against the US dollar. Due to the Rupee depreciation, rising international interest rates, and the geopolitical situation, the NRI investment plans have begun to increase as the Indian real estate market seems more affordable to the foreign investors. The breakdown of the currency value in a floating exchange system in par with the other countries is known as Rupee Depreciation. Any variations in a country's currency value can impact its real estate market. It may also influence the costs associated with the real estate industry, such as raw materials, human resources, transportation charges, equipment costs, and so on. So, let's take a quick look at how the rupee depreciation can offer several benefits to NRI investment plans in real estate. Improved AffordabilitySince the value of the rupee has depreciated against foreign currencies, it has become more affordable for NRIs to buy a property in India. This can especially be appealing to the NRIs living in countries with stronger currencies, such as the US, Canada, or Australia. For example, if an NRI is earning in US dollars and wants to buy a property worth INR 1 crore (about USD 134,000) in India, a 5% depreciation in the value of the rupee would make the property cheaper by about INR 5 lakh (about USD 6,700) thus, increasing their purchasing power. According to Niranjan Hiranandani, vice chairman of NAREDCO, the current global currency situation allows NRIs to purchase more square feet of Indian real estate. Higher rental incomeA depreciation in the value of the rupee can help NRI invest in a property in India with much ease. It can also help them work on their already existing property and increase the occupancy value. They can opt to purchase a luxury property as well, which inturn will give them a higher income. However, investing in a ready-to-move-in property is more profitable than an under-construction property to generate high rental income. But, cautious steps are required for such NRI investment plans as there are high chances of suffering losses if invested in the wrong property without research, as the market may change once the rupee stabilises. NRI Property Investment PlanGetting loans for real estate deals have become an expensive task. But when the value of rupee goes down, it gives NRIs a chance to invest in real estate in India. As a result, the number of requests for real estate from other countries has gone up. People often think that when the value of rupee depreciates, it would be good for a NRI to buy property in India. But this is only possible when you are at the final stage of your house purchase and are waiting for the money to be transferred. A NRI may have to wait at least two to three months to complete all the procedures to buy a property. During that time, there are chances that the rupee’s value may become more stable which can affect your property investment plan you made due to the depreciation in the value of the Indian currency. Capital AppreciationA depreciation in the value of the rupee can lead to capital appreciation in the long term. For example, if an NRI buys a property in India when the value of the rupee falls, he has made a capital investment. So sometime in the future when the value of the rupee appreciates he will be capable of receiving higher returns of his investment. Diversification of PortfolioRupee depreciation can also provide NRIs with the opportunity to diversify their investment portfolio. By investing in Indian real estate, NRIs can reduce their risk and provide a hedge against fluctuations in other investments, such as stocks or currencies. This can help investors protect their NRI investment plans and ensure their investments are well-balanced. In addition, when the value of the rupee is low, the cost of sending money to India is also lower, making it easier for NRIs to fund their real estate purchases. Debt Mutual fundsNRIs put a lot of their money into debt mutual funds because they have a higher chance of making money and are better for their taxes. Most of the debt mutual funds’ money is invested in property. On the other hand, the rise in interest rates has hurt the duration approach. When interest rates go up, it’s likely that funds with very short maturity span and debt funds that use the accrual method will be comparatively successful. You should be aware that your investment plans in debt mutual funds that hold medium to long term measurement could become more volatile. But NRIs who plan to sell their house and convert it to USD in the near future might be able to get back some of the value of their debt mutual funds that they lost during Rupee Depreciation. Other FactorsIt's important to note that rupee depreciation is just one factor that can affect NRI investment plans. Other factors, such as economic growth, infrastructure development, and government policies, also play a major role in the performance of the real estate market in India. NRIs should consider these factors and do their own research before making any real estate investments in India. It's also important to note that rupee depreciation can negatively impact the real estate market. For example, it can lead to higher inflation, which can make it more expensive for NRIs to invest in real estate. Or it can lead to a slowdown in economic growth, which can impact the demand for properties and the value of investments. Final WordsDespite these potential negative impacts, the overall benefits of rupee depreciation for NRIs investing in real estate in India are significant. NRIs can take advantage of increased purchasing power, attractive returns, more competitive pricing, and the opportunity to diversify their portfolio. By carefully considering these factors, it's possible to create informed NRI investment plans and earn significant profits. About PropertyAngelPropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. Contact us at (91-80-47095974) or (91-7406484455) if you need guidance on how to invest in the right property in Bangalore.
At PropertyAngel, we know how a good tenant helps a property management company by being reliable, responsible, and easy to work with. Therefore, on our 8th anniversary, we launched "PropStar" - India's first-ever tenant reward program. PropStar rewards tenants with points for meeting a specific goal or "action". After you reach a certain PropScore (the total number of points earned), your credibility as a tenant improves, which increases your levels to Bronze, Silver, Gold, Platinum, and Diamond. You get exciting cashback and rewards when you reach one of these levels. A Quick Overview of PropertyAngelPropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. Contact us at (91-80-47095974) or (91-7406484455) to know more about our services. So, without further ado, let's look at how PropStar can help tenants. Benefits of the PropStar ProgramPropStar aims to reward tenants for taking positive actions. The more positive actions you take, the more points you make. Let's take a look at the importance of these actions and how PropStar benefits tenants for doing so. Paying Rent Before TimePaying rent before time can give you peace of mind because you no longer have to worry about the due date or rush to arrange the money at the last minute. Thus, PropStar rewards you with 500 points to pay rent before time. Paying Rent On TimePaying rent on time can help you manage your finances by budgeting for other expenses. Also, it allows you to save money on late fees and improve your credit score. Thus, PropStar rewards you with 200 points for paying rent on time. Referring Other Tenants Today, it's challenging to find a responsible, reliable tenant who meets all the requirements. Thus, PropStar rewards you with 500 points upon conversion if you refer other good tenants to PropertyAngel. Keeping the Property Well Maintained Taking care of the property helps preserve its value and prevent it from deteriorating over time. Thus, Propstar rewards you with 1000 points to keep your property well maintained. Completing 6-Month Inspection on TimeCompleting the 6-month inspection on time protects the landlord's investment and ensures you're committed to maintaining the property well. Thus, PropStar rewards you with 1000 points for completing an on-time inspection. Other ActionsThe PropStar program also rewards points for other actions like contract renewal, finding a replacement when vacating, vacating and choosing another PropertyAngel property, etc. Final WordsPropertyAngel believes that PropStar will help tenants save money, have more fun, and feel more satisfied with their living experience. Comment below and let us know what you think of this program.
Buying a home is not easy, especially in urban areas. A person spends all his savings on down payments and then takes out a hefty loan whose EMI he has to pay for the rest of his life if income doesn't increase as predicted. And what if the under construction property gets stalled or delayed? Nothing is more heartbreaking than this. So, in this blog, we will discuss how to deal with delayed housing projects and how to avoid them in the first place. Housing Project Delayed: What Do You Do?Usually, it's easier on the pocket for homebuyers to buy an under construction property and pay a pre-EMI. The Pre-EMI on a home loan is the interest paid to the lender while the property is still under construction. It doesn't adjust the loan that you've taken. However, when your project gets stalled, the first thing that strikes your mind is, what about the EMIs?. So, here are a few things a homebuyer can do in this scenario. Form an AssociationAs a buyer, the first thing you should do is to visit the under construction building and check who else is there. That's how you meet up with other homebuyers, communicate with them, and form an association to work on this issue. Search For Legal RecourseThe second step is to hire a law firm or lawyer with experience in property matters. Also, the lawyer should have both civil and criminal legal counsel because there can be a criminal case if your builder has misutilized the funds. Get an Injunction Ordering the Bank Not to Deduct Pre-EMIsThe Karnataka High Court has recognized that certain banks or financial institutions wrongfully disburse very large sums of money to construction projects, due to which these under construction buildings stop or don't move forward. As a result, banks cannot pressurize or take adverse action against such homebuyers and force them to pay pre-EMIs on projects that are still under construction, have been completely stalled, or have been delayed. Thus, homebuyers have the right to go to a civil court and get an injunction ordering the bank not to deduct the pre-EMI amount from them, or go to a high court as an association. Marketing Schemes and Gimmicks - Subvention SchemesIn short, a Subvention Scheme is a legal agreement between the buyer, the seller, and the financial institution providing the home loan. In this scheme, the buyer doesn't have to pay any interest until an agreed-upon period, which is mentioned under the contract terms. Although the central government scrapped this scheme in the 2019 budget, the builders have still continued to offer these schemes by making an agreement with the bank. Since the interest is borne by the bank and the customer doesn't pay it, the builders price their projects to include the finance costs into the price of their under construction buildings. Now, the builders advertise these schemes to attract buyers by claiming that these schemes are more financially secure when you buy an under construction property. Consequently, the builder, the financial institution, and the homebuyer enter into a tripartite agreement. In a tripartite agreement, it is agreed that the homebuyer has to pay a very small down payment (ranging from 5% to 20% of the loan amount), and the bank will fund the rest of the amount. When banks transfer these funds to developers, over which the homebuyers have no control, they end up diverting them to other construction projects. After a few years, the homebuyers realize that their project has stalled and nothing is moving forward. However, the homebuyer is still forced to pay the pre-EMIs, and he doesn't have the option to stop paying because his CIBIL score will suffer. And if he refuses to pay, the financial institution can take legal action against him by filing Section 138 or implement other legal remedies like sending recovery agents to his home. What Legal Steps Can You Take as A Homebuyer?File a RERA ComplaintThe RERA regulations have made builders far more cautious, and buyers can get multiple kinds of relief if they file a RERA complaint. For instance, under Section 18 of the Act, a buyer can seek complete refund as well as compensation if he wants to exit from the project. Also, under Section 8 of the Act, the association of homebuyers can appeal to transfer the project's construction to another builder if they want to continue. Plus, a buyer can seek interest for a delayed period. Although the execution of RERA orders is difficult, once a homebuyer gets a RERA order, it's important to understand that his debt is secured in many ways. If the homebuyer does end up in insolvency, this piece of paper will ensure that he is a financial creditor of that particular company and can seek his right before the NCLT (National Company Law Tribunal). File a Petition Before NCLT CourtNCLT is a great option available for homebuyers. For instance, when a group of homebuyers have formed an association, they are now recognized as "Financial Creditors" in the NCLT under the IPC code, which is the "Insolvency and Bankruptcy Code." Thus, homebuyers can collectively approach the NCLT and file for a Corporate Insolvency Resolution Process (CIRP). If the petition is accepted, the entire CIRP process starts where a resolution professional is appointed who specializes in handling distressed companies and distressed projects. File a Complaint in Consumer CourtConsumer Court is another excellent option for homebuyers. Because RERA and Consumer Court are parallel forums, a homebuyer can approach both, but he cannot ask for the same relief in both forums. For example, if a homebuyer asks for a refund in RERA, he cannot do the same in Consumer Court. However, he can ask for compensatory damages in Consumer Court. File a Criminal Complaint Against the Banks and BuildersHomebuyers can also file cases against the banks because they have released large sums of money without really considering the stages of construction, thus, violating the public trust doctrine that banks as financial institutions owe to the public. Plus, if the builder has misused the funds in any way, the homebuyers can also file a criminal case against the builder. What If Another Builder is Willing to Take Over the Under Construction PropertyEven with all of the legal remedies and knowing what the ground reality is, it's a very viable option for homebuyers to consider. It can take years to get a court order in your favour and execute the order. However, many homebuyers will refuse to go with a new builder, or the new builder will have a lot of terms and conditions for taking over your project, but it's all about balancing the options available. How Do You Avoid Falling into a Delayed Housing Project?Conduct a Thorough Background CheckA proper background check on the builder, the property, and the project itself is very important. It includes the financials of the project, the fund sources, the banks involved, etc. This research will also reveal whether the builder has a lot of financial constraints, whether he has the financial stability to finish the project, or whether the construction company has a lot of debt, and more. Thus, it will help a homebuyer decide whether or not to proceed with the project. Ensure that your Agreement is RegisteredAs a homebuyer, make sure your agreement is registered when you sign it. Many homebuyers confuse franking a document with registering. Franking is the process of getting the document stamped and indicates that the document is legal and the stamp duty has been paid. However, it doesn't ensure that your document is registered. A registered agreement is one that has been signed and scanned by the Government's Registrar office. A registered agreement has admissibility in a court of law, and it allows the homebuyer to transfer his rights if required. Ensure the Project Has Got All Necessary ApprovalsWhen buying an under construction property, make sure it's in a condition where the construction can take place without any interference. So ask the builder if they have received all necessary approvals to construct the project. Ideally, you should consult a lawyer when you plan to buy a property. The lawyer will ask you to get a list of documents from the builder, which you can ask from the builder and submit to the lawyer for verification. About Prop.AcademyProp.Academy is sponsored by PropertyAngel. Prop.Academy aims to inform and educate consumers about real estate affairs and upskill professionals on the latest tools and best practices.
In this video, Sapna Chandiramani, Co-founder of PropertyAngel, speaks with Advocate Ayusshi Agarwal, Founding Partner of Karya Associates, and Pawan Chadha, a distressed home buyer. Many owners and potential clients often wonder what full-service property management Bangalore is. When we say "full service," we're not just using a shopworn cliché. We mean that we offer a complete range of property management services that set us apart from the ordinary. In this article, we will go over property management Bangalore and the full range of services offered by PropertyAngel. What is Property Management?By definition, property management Bangalore is the management of real estate by a third party. The responsibilities of a property management firm typically include day-to-day operations such as marketing rentals, screening tenants, setting competitive rental rates, coordinating necessary maintenance and repairs, collecting rent, managing budgets, and complying with all rental laws and regulations. PropertyAngel's Full Property Management ExplainedWhen you handover your real estate portfolio to our property management Bangalore services, we make sure to take care of everything, from tenant screening and marketing to rent collection and maintenance. Let's jump into the list of responsibilities: 1. Setting competitive rental fees.As one of the best property management firms, we know and understand the market and the areas we work in. That's why setting rent is one of our main responsibilities. We perform an annual survey of similar properties in a given area. In this way, we ensure that our rates are attractive to tenants. That's why our customers have confidence in our full property management Bangalore services. 2. Collecting rentJust as we set rental rates, we are also responsible for collecting rent. Through our tech-enabled property management Bangalore services, we implement a user-friendly system for tenants to make their monthly payments. 3. Finding tenantsFinding tenants requires a lot of research, time and planning. At PropertyAngel, we first analyze the market where your property is located and then devise a strategy to attract the right tenants. We post pictures and videos of your property on social media and various real estate websites to promote it. 4. Screening tenantsOnce we generate a flow of potential tenants, we screen these individuals to ensure they are stand-up citizens who will pay their rent timely and respect the premises. Our screening of tenants typically involves a meet and greet, a background check, and/or a credit score check. Our property management Bangalore services have the tools and resources to make this happen. 5. Managing daily complaintsIt's bound to happen; every tenant will have complaints at some point. We know how to deal with these complaints in a timely and fair manner. With our full property management Bangalore services, you can avoid the headache that can come with sorting out disputes. 6. Arranging tenant move-in or move-out dates, as well as evictionsWe arrange both move-in and move-out dates and ensure these dates comply with the signed contracts. In addition, we collect the security deposit and return it upon exit clearance. Also, our property management Bangalore services facilitate evictions legally and fairly. 7. Property maintenanceProperty maintenance is an important aspect of our property management Bangalore services. We create a long-term maintenance plan for your property and make sure it meets the legal building regulations. 8. Managing the BudgetPropertyAngel is well-versed in comprehensive budgeting. We use the budget to set various quarterly goals. In this way, we closely monitor the income and costs and make quick strategy changes if the existing systems fail. We typically include these costs in the budget:
Need for Property Management Firms in BangaloreAre you looking for property management firms in Bangalore? Then look no further. PropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. We have almost 8 years of experience in property management Bangalore.
Since November 2014, we have had customers in 95 countries, managed over 1.5 million square feet, and have a 100% on-time rent distribution record. To know more about our property management services, contact us at (91-80-47095974) or (91-7406484455). What are the residential property management services offered by PropertyAngel for landlords?7/12/2022 Residential property management services are highly beneficial to any landlord, whether first-time landlords or experienced owners with multiple properties. Dealing with all of the daily demands of tenants - as well as tenant turnover - takes a great amount of time. Most landlords work a day job while owning rental properties, and they do not have unlimited hours to devote to their rental property. Using residential property management services allows you to enjoy the benefits of owning rental properties without the added stress of another job. Continue reading to learn more about the benefits of using residential property management services. What are Residential Property Management Services?A residential property management service will handle all aspects of your rental property, including finding tenants, dealing with maintenance, and collecting rent. Residential property management services can respond quickly to your tenant's needs. When a tenant has a problem, they want to know that their landlord will fix it as soon as possible. You might have a full-time job or not even live in the same state as your rental. You might not be able to drive over to the house and personally inspect everything that goes wrong. You must always have someone to respond to your tenant's needs as soon as possible. The perfect solution is to use a residential property management service. If your tenant has a repair problem or another concern, they can contact the property management company and have it resolved right away. The tenant will be pleased, the problem will be resolved, and you will no longer have to deal with it. Residential property management services help keep your tenants happy and in your unit. For landlords, turnover is a big expense. When the previous tenant moves out, you must make repairs, market the property, and find a new landlord. Meanwhile, the unit may remain vacant for some time. You will be much better if you can keep your tenant happy long enough for them to stay in your rental property. After all, residential property management services are in the business of keeping tenants satisfied. They will look after your tenants and make sure they are pleased to live in your rental property. Thus, tenants will want to keep living there. Residential property management services minimize your stress. If you're like most landlords, you want the benefits of owning a rental property without the hassles of day-to-day management. Is that impossible or too good to be true? It doesn't have to be that way. Residential property management services will handle all the stressful details while you sit back and collect rent. Why Hire PropertyAngel? Our residential property management services offer a host of benefits to landlords and tenants alike. If you have a day job or you don't live near your rental property, rest assured we can help you meet your investment goals. When you work with us, you can expect the following services: Financial Reporting At PropertyAngel, we always keep our clients updated on the status of their rental property. As our client, we will provide you with comprehensive, detailed reports on your property. You can access your statements through your owner's portal at any time. Tenant Screening Our screening process helps us find the best tenants. When we screen tenants, we look at various factors to make sure they are the best fit. For example, we look at how much money a prospective tenant makes each month. This allows us to analyze whether they will be able to pay their rent on time. We also check each prospective tenant's employment, criminal, and rental history. As per state law, our screening process is thorough while also being fair to all applicants. On-Time Rent Collection PropertyAngel can make sure you receive consistent rent payments from your tenants. Before a tenant signs a lease with us, we ensure they understand all terms, including rent. This helps to avoid future confusion and misunderstandings that may result in late or missed rent payments. With our years of market analysis experience, we can also help you figure out the correct rental price for your property. Effective Property Marketing Our marketing process is aggressive and produces quick results. Our marketing goal is to find you a desirable tenant in as little time as possible. With online marketing, we maximize your property's exposure by posting pictures and videos on our website, social media, and various real estate portals. Regular Property Maintenance PropertyAngel can also help you with your property's maintenance needs. We respond quickly to tenant maintenance requests and inspect your property on a regular basis for potential damage. We understand the importance of maintaining your rental property. A well-kept property attracts the right tenants and abides by the state's habitability laws. When it comes to maintaining and repairing properties, our team of contractors is experienced and skilled. About PropertyAngelPropertyAngel is an O2O (online-to-offline) solution-oriented property management company. When you hire us:
We treat all our clients with respect, transparency, and integrity. Get in touch with the experts at PropertyAngel. We provide residential property management services. PropertyAngel will take care of every aspect of your rental property. We'll market your property, screen tenants, handle repairs, and collect rent. Contact PropertyAngel to learn more about our residential property management services. Introduction to Rental Property Management Companies in BangaloreRental property management companies in Bangalore manage rental properties on behalf of their clients. In other words, the company handles every aspect of the property, from the initial inspection to its maintenance and repairs. Plus, the best property management companies in Bangalore offer marketing and advertising services to help renters find and pick the right rental property, as well as coordinate tenant move-in and move-out services. Rental property management companies in Bangalore typically charge a fee for their services, which depends on the size and complexity of the property. Besides, residential property management services include additional services like 24-hour emergency service or property inspection management software, which allows landlords to track expenses and income easily. 1. Rental Property Management Companies in Bangalore ServicesBelow are 8 services rental property management companies in Bangalore offer: Directly with Prospects and Tenants This includes finding tenants, screening applicants, managing leases, and setting appropriate rent levels in compliance with state and municipal laws. Finding tenants Best property management companies in Bangalore will know where, when, and how to advertise your vacant property to get you the high-quality prospective renters needed to minimize property vacancies. At PropertyAngel, we maximize your property's exposure by posting pictures and videos on our website, social media, and various real estate portals. Screening applicants The screening of rental applicants can yield reliable tenants who pay on time and stay in their leases longer. Rental property management companies in Bangalore thoroughly screen prospective renters by running credit checks, verifying employment, checking references, and performing criminal background checks. Managing leases For newer property owners, it may seem easy to create a standard lease agreement, right? Not so fast. Managing leases can be a full-time job in itself. Experienced rental property management companies in Bangalore will:
Setting rent levels Setting appropriate rent levels can make the difference between earning a healthy income from your property and pursuing an expensive hobby. Best property management companies in Bangalore can provide market insight and analysis, which can help you set competitive but profitable rates. 2. Rental Property Management Companies in Bangalore Collects and Deposits RentCollecting timely payments from customers is a challenge in any business. Rental property management companies in Bangalore have systems in place for collecting and depositing rent payments, security deposits, and late fees in an efficient and timely manner. We have a 100% on-time rent distribution record at PropertyAngel. 3. Rental Property Management Companies in Bangalore Handles Maintenance and Repair IssuesRegular maintenance is necessary to protect your property value and keep tenants happy. Rental property management companies in Bangalore have the experience and resources to complete the job, including repair services, contractors, and staff. Also, remember the unscheduled maintenance requests that come in, often at night or early morning, when tenants have a clogged toilet or lock themselves out of their units. Thus, residential property management services provide 24-hour on-call maintenance service. 4. Rental Property Management Companies in Bangalore Respond to Tenant ComplaintsTenant complaints range from noise and pest infestations to concerns over potentially hazardous conditions like toxic mold, faulty wiring, carbon monoxide, etc. While pest control can help with the former, the latter complaints require further investigation. Best property management companies in Bangalore know how to handle these complaints in a professional, timely, and non-emotional way. 5. Best Property Management Companies in Bangalore Handle Move-OutsMove-out duties include returning (or not returning) the security deposit, cleaning the property, and making any repairs. These tasks can become tedious in the unfortunate circumstance of an eviction. 6. Rental Property Management Companies in Bangalore Keeps You CompliantRental property management companies in Bangalore have an in-depth knowledge of state and national laws governing the rental property industry. They'll help to keep you legally compliant and minimize your risk exposure in matters ranging from safety and environmental compliance to discrimination and eviction. 7. Rental Property Management Companies in Bangalore Manage the Budget and Maintain RecordsBest property management companies in Bangalore can help you with tedious record-keeping responsibilities, advise you on which deductions you can claim, and even file taxes on the property. 8. Supervise Property and PersonnelBest property management companies in Bangalore will supervise and manage maintenance and security personnel to ensure they do their work in full and on time. In addition, they can provide 24/7 protection of vacant properties against vandalism and theft. Final WordsKnowing these eight things rental property management companies in Bangalore do will help you make the right choice. You should also consider your available budget, time, and resources to decide what is best for you. To learn more, visit our blog or call us at (91-80-47095974) or (91-7406484455).
Today, building a rental property portfolio is synonymous with the best retirement and wealth-building strategies. A well-managed portfolio of rental properties is entirely capable of helping savvy investors achieve financial freedom passively, both now and in the future. However, a passively managed portfolio of rental properties requires a qualified property manager. A truly great property manager will allow investors to continue adding to their portfolio without adding more work for a fee, which begs the question: how much does a property manager cost? How much do property management firms charge for the peace of mind they offer to their clients? Even better, is the cost of property management worth it? The average property management fee ranges from 6% to 12% of the rent collected. However, rental property owners are more interested to know where their money is going rather than the exact property manager cost. If nothing else, the cost of a good property manager is well worth it. At PropertyAngel, our monthly management fee is 9% of the rent collected. There are no yearly or hidden fees to worry about. Let's look at the fees investors can expect to pay throughout a property management contract. Common Property Manager CostsProperty managers have earned a reputation for being the most valuable asset to passive income investors (outside of the properties themselves, of course). Property managers handle everything from running the property to collecting rent, allowing investors to own multiple assets without being bogged down by day-to-day operations. Thus, it's pretty common for today's property management firms to provide a full range of services and fees: Setup Fee A setup fee, also known as an onboarding fee, is exactly what it sounds like: a fee that homeowners must pay to do business with a property manager. A setup fee will represent the cost that homeowners must bear to open an account with a specific manager. Setup fees are typically not included in the monthly collection because it's a one-time fee. However, some managers may charge a setup fee for each additional property added to the portfolio. Leasing Fee A leasing fee is the price landlords must pay to fill a vacancy and is one of the most common property manager costs. A leasing fee, also known as a placement fee, is the cost imposed on homeowners by property managers to fill vacant homes. The leasing fee can vary greatly because of its direct correlation to market demand. That said, one thing's for sure: leasing fees contribute a large portion of the cost of working with a property manager; they are, after all, the most common reason rental property owners seek the services of a manager in the first place. Early Cancellation Fee Most contracts with property management companies will include an early cancellation clause. Homeowners may be penalized for terminating their contract with a manager early, just like how tenants may be charged extra for breaking a lease early. While not every manager includes an early cancellation fee in their contract, it is very common. Therefore, if you notice an early cancellation fee in your contract, don't be worried; it's not a deal breaker. Just do your homework and make sure you hire the right manager for the job. Advertising Fee Depending on the property manager, this fee may already be included in the leasing fee. After all, advertising is one of the biggest expenses in securing tenants. The property manager will use this to fill vacancies. Because advertising costs can differ greatly, the contract must specify how much money will be dedicated to advertising. This property manager cost will increase your home's exposure in almost every platform. Maintenance Fee The maintenance fee covers the cost of keeping contractors and other maintenance service providers on retainer, which means the property manager will have access to their expertise when needed. However, it's important to note that this property manager cost is only used to pay for the services of said workers, not the work itself. The homeowner will be responsible for any additional work. Also, maintenance workers will need to be compensated for the materials and time spent on each individual job, which can vary considerably from project to project. Vacancy Fee Property management fees are generally included in contracts to give managers a cut of the money homeowners earn. However, property managers lose money if the property remains vacant. Thus, some companies charge a vacancy fee. The vacancy fee will charge homeowners for vacant properties so they don't lose money. However, it is the manager's responsibility to keep the home rented, so many would argue that this fee is the most unjust. This fee should raise some red flags for you as a homeowner. At PropertyAngel, you will not be charged a single fee until your property is rented. Reserve Funds Fee The reserve fund fee is more like a bank account with no interest. The reserve fund is basically a pool of money the manager can draw from when the property needs attention. Automatic Payment Fee Non-cash transactions cost money to complete. Thus, most property manager costs include an automatic payment fee in the contract. Therefore, the homeowner has to pay the transaction fee. This fee not only ensures that the homeowner will pay their bill on time each month, but it also reduces overhead for the property manager. Lease Renewal Fee Because of economic fluctuation and the current market environment, rental guidelines and leases are constantly changing. It is not uncommon for rental rates to change at the end of a lease in order to meet the new standards. Thus, after each contract expires, new leases are required. This property manager cost is meant to cover the cost of a new lease when new tenants move in. Late Payment Fee Late payment fees are common provisions in any property management agreement. They state that the homeowner must pay any late or missed payments. The good news is that this fee is completely avoidable with proper budgeting. Eviction Fee Eviction fees can quickly add up, but they are well worth the admission fee. Evictions are upsetting, costly, and stressful, which all investors would rather avoid. Thus, paying an eviction fee to the property manager to handle everything makes perfect sense. Final WordsThe average property manager cost may seem to distract people, but it is important to consider the expense as an investment. Of course, hiring a property manager will cost money, but the initial investment can be recovered easily through the number of services provided. In fact, the right property manager can return more profits than their initial investment. To make your rental portfolio work for you, call us at (91-80-47095974) or (91-7406484455).
Real estate investing can be a great source of passive income. However, managing a rental can require a lot of time commitment that you may not be up for. At this point, the benefits of hiring a property management company become clear, but how do you choose the right one? Because your rental property is one of your most valuable assets, you want to work with a trusted property management company. Here are some important steps to take when finding the best property management company. Referrals You trust the judgement of your family members and friends, so ask them for a recommendation on a property management company and how their experience has been with the company. Research Do your research online! Google "Property Management Company in Bangalore" and visit their websites. Their websites should include information about their property management services, fees, team members, experience, and awards. A company that regularly publishes blog posts, social media posts, etc., will give you insight into their rental market knowledge. A company that has received multiple awards from reputable businesses will convince you that they are recognized as a reputable business in the city. Reviews Look at the reviews of a property management company. What are their current clients and tenants saying about them? Reviews should give you insights from both sides of the property management service. How do they treat their customers vs. how do they treat their tenants? If they have negative reviews, check if the company has replied with a comment. Their response will provide valuable information about how they handle stressful situations and their customer service. Ask Questions Next, contact the property management company and arrange a meeting with one of their agents or property managers. Often, property management companies offer free consultations. Ask them how well they know the rental market in your area, particularly in the neighborhood where your rental property is located. How will they market your home? Are they licensed? Do they provide tax services to non-residents? How do they handle repairs and maintenance? Review Their Agency Agreement Check out all of their property management services, fees, and procedures. Some property management companies charge an all-inclusive management fee, while others charge a lower management fee with additional surcharges for services like inspections and maintenance. Knowing what fees to expect will help you plan your budget and rental cash flow. About PropertyAngel - Property Management Company in BangalorePropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company that offers professional property management for villas, individual apartments, and houses. PropertyAngel has over 7+ years of experience in property management. When you hand over your keys to PropertyAngel, we become your second landlord. In other words, if you hire PropertyAngel, you won't have to worry about property management issues. Also, we look for tenants who plan to stay in your home for at least a year. We don't shortlist short-term tenants. Since November 2014, we have had customers in 95 countries, manage over 1.5 million square feet, and have a 100% on-time rent distribution record. Final WordsIn the end, hiring a property management company to manage your real estate portfolio should make your life easier. However, when choosing between service vs. cost, one must weigh the pros and cons of it. Thus, putting in the work to research a company beforehand can help you avoid a headache and additional costs due to lack of service later on.
Contact us at (91-80-47095974) or (91-7406484455) and make your real estate portfolio work for you. Are you looking for a property management firm? Hiring a property management company is an amazing way to save time and money. While the services of property management companies differ, the basics are the same. However, it's important to understand what those are to make sure that the company you hire is a good fit for your needs. Before we get there, let's talk about property management briefly. The monitoring and management of various commercial and residential real estate properties is known as property management. This includes managing all aspects of a property's daily operations, like collecting rent, handling maintenance, dealing with tenant complaints, etc. The amount of responsibilities property managers have depends on their lease agreement with the landlord. For example, a landlord can hire a property management company to help with one task, such as collecting rent, or they can specify that they want them to handle all business operations for their property. Let us now look more closely at what property management includes. Administrative ServicesAdministrative services include preparing documents, handling finances, and keeping property records. To do this, property management companies communicate with the owner, tenants, and contractors. They also deal with the day-to-day operations and tasks that need to be completed. At PropertyAngel, we take care of everything from tenant requests to handling emergencies, moving-outs, etc. We will even handle the eviction if necessary. Leasing and Marketing ServicesMost property management companies include leasing and marketing in their service package. This service includes listing your property, showing it to potential tenants, and screening them. At PropertyAngel, we market our client's properties by posting pictures and videos on our website, social media, and various real estate portals. Once a tenant is found, the property management company will handle all paperwork and lease negotiations. Financial ServicesMost property management companies offer financial services to their clients. This can include collecting rent, paying bills, and even preparing tax returns. The scope of these services will differ from company to company. This can provide a much-needed service for landlords who may lack the time or knowledge to handle these tasks themselves. BookkeepingThis is a valuable service for landlords and property managers who need to keep track of their expenses and income. Making informed decisions about the property would be easier with bookkeeping. Plus, it's possible to identify potential financial problems through bookkeeping. Final WordsIf your rental business grows to the point where you need property management, you'll have much less to worry about. Upon handing over your properties, your manager will take care of everything else.
Your property manager's specific responsibilities will vary depending on the type of property and the terms of your contract. Managing a large apartment complex differs from managing a dozen single-family homes. Make sure you clearly understand the terms of your contract with the property management company. To make your rental portfolio work for you, call us at (91-80-47095974) or (91-7406484455). |
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