How to Manage Your Investment Property

Bangalore: Managing the investment property can be a challenging effort; it requires a lot of patience. Knowing the pitfalls to shun will curtail the efforts. For every investment property owner, there are two options to follow, one is managing the property by own and engaging with licensed real estate management company. The increase of employment opportunities, hike in salaries and decline in Rupee value has created many real-estate investors. Owning an investment property will create a long term wealth.

Managing investment property by yourself

Managing your investment property by yourself is a good option which combines a lot of dedication and knowledge. The foremost thing that every investor should do is to look for better opportunities to maximize revenues. Putting up the rents on the rise and shrinking the supply of rental agreements and pricing the property value below the market level to attract tenants or failure to keep up is the common mistakes done by investors. Managing your investment property by yourself includes many responsibilities such as

• Disclosing all the important information about investment property and advertising for tenants
• Choosing the best tenant by screening
• Understanding the updated legal tenancy laws
• Processing customary residential property agreement and rental bond which includes lease term, rental increases and number of inspections.
• Handling financial transactions and maintaining the record of rent payment
• Responding the tenant calls and organizing the repairs and problems related to electricity, plumbing, fittings, utility connections and many others within a time frame.
• Conducting a regular inspection in a year
• Being ready to deal with problematic tenants those who pay rent late and ready to renegotiate the rental cost.

Managing with Licensed Real estate Agent:

If you are not able to manage the investment property by yourself, consult a property management company (licensed) and real-estate agent who have years of experience and a good track record. If you have less experience in dealing with tenants it is advantageous to rent out an investment property via real estate agent as they will manage your investment property in a precise way. Usually to find the tenant the agents/property management will charge a commission of five to seven percent of the rental value which are tax deductible. Property Management Company splits their charges into two categories one is letting fees (to find tenants for investment property through advertisement and screening) and management fees (for maintenance and checkups).

This management fee can vary from company to company and agent to agent as it charges additional fee for mailing and advertisements. Before hiring the agency check the track record and see references from other customers of that agent.