Renting a residential property investment may no longer be new but a lot of people still can’t get it right which oftentimes end in dilapidation issues, disputes, monetary penalties, evictions or worse legal battles.
To do away with the hassle and the trouble of all that, here are the do’s and don’ts when it comes to leasing. Bear this in mind and you’ll be your landlord’s favorite in a jiffy!
Understand the terms of the rental contract. – Don’t sign if there’ something you don’t understand or agree to. It’s okay to ask the landlord for clarifications or have them hear your concerns.
Pay on time. – You have to come up with your end of the bargain otherwise face the consequences of penalties or eviction. Know the schedule and the terms and in case there are circumstances that cannot be avoided, inform your landlord ahead of time.
Make repair needs known. – Don’t wait until an issue escalates. Tell your landlord immediately in case there’s a need for repair or maintenance. In the event that the rental contract contains a clause that states your responsibility in such circumstances, own up to your responsibilities.
Treat the property as if it were your own. – In other words, take care of it. It’s that simple.
Trash the property. – First of all, it’s not yours. Refer to last item in the above list. This includes being discreet and not making loud, unnecessary noises or any form of nuisance to the neighborhood. Be a good tenant if not the best.
Redecorate without consent. – Most rentals do not allow certain renovations both for structural or aesthetic purposes. This includes things as simple as nailing on the walls. If you’re planning to, make sure that the landlord gives the consent, it’s put into writing and the lease contract is updated to protect both parties of their interests.
Throw away documents. – In fact, keep them all with you. They will come in handy at some point and will serve as both an information source and a wall of protection for you. They contain your rights, any agreement updates and payment receipts.
Forget to inquire about pets. – Not all residential property investment for lease allow for pets so before moving in, check and inquire. Do not sneak in your furry friend. There will be a penalty.
Before buying property investments for sale, there are a number of questions that every investor has to ponder on. After all, these purchases are not easy. They come with a lot of responsibility and not to mention involve significant levels of financial resources. It’s not one to be taken lightly.
Does it satisfy my needs?
This is very important. It would be highly unwise and silly to buy something that does not satisfy a need or a purpose. One has to carefully assess one’s needs before even looking at the available assets in the market. Establish negotiable and non-negotiable requirements too because perfect properties rarely exist and there will be characteristics that you seek which may not be available given the circumstances.
How much can I and am willing to afford?
When we talk about buying assets, we can never skip the part that talks about money. It’s no secret that they cost a lot. Some may be affordable while others are crazy expensive. This makes it all the more important for investors to also assess their financial standing, capacities and limits. Find out which sources will be used, how much cash is on hand and the ceiling by which the acquisition is to conform to.
How accessible is it?
A good property is one that can be easily accessible both to and from it. This applies regardless if one seeks for retail, commercial, residential or even industrial asset. Location is king and it speaks a lot in terms of value. Plus the more convenient it is in terms of transportation, the less stress one is exposed to.
Is it safe enough?
Make sure to only acquire property investments that are safe and secure. This does not only apply to the neighborhood, town or city it is in but on the asset itself too. Always ask a qualified surveyor to check into the building’s condition, its structural integrity and foundation. How about the land? Is it safe enough to build on? Can you renovate and add to the asset as time goes on? Research and ask around.
What are my options?
If one adds up all the factors, the choices available will fall on a certain category. See to it that before closing in on any property investments for sale, adequate research has been done. Canvass first and never jump at the first opportunity seen. Compare and get to know how the market works to truly benefit and save at the same time.
If you’re planning to buy residential property investments for sale then you’re up for a good amount of work. These things are not your usual grocery items that you can pick and throw into your stash in a jiffy. You’ll have to be smart and you need to be cautious. Here’s a little guideline to help you get through unscathed. It’s a battlefield out there with everyone wanting the best deal.
Be careful of what the heart says. – Many buyers make the mistake of getting their emotions mixed up in the process. Sure, you’ll want to get a residential investment that you actually like but you must also consider what you really need and what you can afford now and in the future.
Get yourself pre-approved. – Fund sources and methods for an investment as huge as this will take time to process and even more to get approved and released. This is why it is wise to get yourself pre-approved. You’ll save a lot of time plus you won’t have to worry about money coming in late.
Have the asset surveyed. – A chartered property surveyor is a professional hired for a number of reasons but chiefly to help validate information and bring out important details about an asset that will affect your decision. For instance, they can look at any available dilapidation cases, liens and encumbrances, wall disputes or ownership issues. They can also provide an estimate of ongoing costs. Likewise, they can compute for the actual market value and depreciation. There’s building integrity and condition too, safety, appreciation potential and the list goes on.
Strengthen your financial score ahead of time. – If you plan to acquire in the next year or months then you have to make a conscious effort with your spending. Avoid any large purchases and even borrowings. You’ll need quite the attractive paper trail that proves your creditworthiness should you get a loan, a mortgage or something similar for the property.
Take a look at your surroundings. – We all know that location matters but apart from that, neighborhood will play a role too when buying residential property investments for sale. Are the neighbors cool or are they unsightly and rude? Are there any significant establishments and structures nearby like hospitals, groceries, malls, schools, transportation outlets, roads and all that? How about the crime rate? Take a survey and don’t hesitate to ask around to get a feel of things.
Maintenance plays a huge role in the upkeep and value preservation of any investment property. Failure to take care of this type of asset can be financially hefty. As they say, prevention is better than cure and the best way to avoid the dilemma is by practicing proper upkeep from the very beginning. Don’t worry, we’ll tell you how.
Always allot a budget for it. Repair and maintenance is expected every year and all throughout the life of the property. Skipping on them may seem cost efficient at first but in the long run they only lead to worse conditions. The solution is to always budget it in.
Check the windows for any cracks. If any, make sure to repair them immediately. Water can get into the jamb and rot the structure from the inside.
Check for any water leaking in your toilet. Leaks are expensive as they will shoot up your utility bills plus it can hasten the wear and tear of the bathroom floor as well as the internal workings in the structure. But this is tricky considering that the bathroom is normally wet. Here’s a tip, use food coloring. Place a few drops in the toilet tank and leave it be for a day. If you see any of it in the floors then you my friend have a leak to fix.
Replace washers regularly. These are the main cause of leaky faucets. They’re not as hard or expensive to replace either.
Never throw oil and fat-based products and food down your drain. They are one of the common causes for clogs as they tend to grease the surface of the pipes. They can be sticky too which explains why dirt and other particles will stick into your drain. If accidents happen and oil, lotion or something like it has spilled, immediately pour dishwashing liquid and quickly follow with hot water.
It would be best to get a strainer to keep not only the oils but also things like hair, food and other small items from falling into the drain.
Have your chimney or fire place cleaned at least once or twice a year. The same applies to other appliances like heaters and air conditioning units but they must be inspected and cleaned more often, monthly would be best.
If you think about it, the above investment property upkeep tips aren’t that hard or costly so why not do it?
You’ve probably already researched and read tens and thousands of articles and advice regarding property investments from types to myths to requirements to financing needs to pretty much everything else but have you considered looking through the things that you should avoid?
If you haven’t then you’re in luck because we have made the following list of characteristics that define a bad property investment.
Almost or Fully Depleted – An asset is given a monetary value which shall be distributed across its years of use. Every year, a rate called depreciation shall reduce it. When one invests, it is crucial to take a look at the remaining worth of the asset. It would be silly to buy something that barely has any value left.
Awkwardly Located – A good investment is characterized by convenience in location. In other words, it is easy to reach. Transportation is present and readily available and significant establishments (e.g. schools, hospitals, grocery, etc.) surround the area. A bad investment on the other hand is completely opposite. Transportation is hard making the asset hard to go to and from. Significant establishments are far away too.
Little to No Appreciation – Depreciation is a given and it is a cost that all property investors and owners will have to deal with. However, one crucial element that must be given adequate attention to would have to be the appreciation rate, or the potential that the asset can increase in value over time given the right factors. An appraisal can be brought about by many factors a few of these will include the presence of establishments and structures within the vicinity as well as renovations and updates.
High Ongoing Costs – Some assets may appear affordable at the onset but becomes very hefty in the long run. A famous example of this would be properties that come with high ongoing costs. These pertain to repairs and maintenance expenditures necessary to keep the functionality of the space.
Ownership Cases – One of the first things to do when acquiring a real estate investment is to ensure that the person selling it has the right to its ownership or has been given the authority by someone who does. Avoid closing in on a property that has a lien or something similar on it. That is a surefire headache waiting to explode.
When you spot the following characteristics to a property investment, you’d know what to do. Run away and flee!
Why are you buying commercial property? Will you use it for your business or will you lease or sell it out for profit? Regardless, remember to avoid these blunders or mistakes when buying one.
NOT HAVING YOUR FINANCES AT THE READY – It is of no secret that a good commercial asset will not stay in the market for long. Competition is out there and every other investor or entrepreneur will only want the best for themselves. If you fail to come up with the necessary upfront costs (e.g. deposit and down payment), chances are the asset will be awarded to the next potential buyer in lie who can provide for it.
FAILURE TO ACKNOWLEDGE REPAIR AND MAINTENANCE COSTS – Keep in mind that there are hidden costs to acquiring a commercial property. These are those exclusive of the sum that you pay to the seller to gain ownership and transfer of title. A good example of this would be the ongoing costs otherwise known as the repair and maintenance expenses. You will be surprised that some assets will be sold for less but their upkeep is at staggering prices making them expensive in the long run. Repairs and maintenance are necessary expenditures and you cannot forego them otherwise you risk having the space go dysfunctional.
CHOOSING A ONE-SIDED CONVENIENT LOCATION – It is a rule of thumb for investors to choose commercial spaces that are situated in such a way that it is conveniently located to customers and one with heavy foot traffic. But what many fail to realize is that location must also be suitable for your employees. You can’t risk spending too much on transportation costs or losing great talent as well.
OVERPAYING FOR A DEAL – Sellers and brokers want a deal and the more profit they make out of one then the better. This makes it important for you as a buyer to be vigilant and meticulous. You have to make your research so that you will get a good idea as to whether or not certain assets are priced reasonably or not.
NOT ACKNOWLEDGING GROWTH – When you buy a commercial property, it is important that you take into consideration the possible growth and expansion of your business and operations. This is true in particular to those buying for purposes of use in their own business operations. You would not want to end up buying another one and moving in the coming year or the next because the space would not suffice anymore. That will be very costly on your part. Anticipate and plan.
In this day and age, sticking and limiting yourself when it comes to income sources would not be wise. With rising commodities and tremendous employment competition, one has to be smart enough to invest their hard earned savings into the right places. One way to do this is by putting them into properties. But how can one determine which asset to place their bets in? You don’t want to end up crying in this game. Correct? To help you, we’ve rounded up a list on what constitutes a profitable property investment. If you’re mighty interested, you better get your note taking tools ready and read up.
First is location. For an asset to have higher appreciation and demand, it has to be situated in key areas. By investing in assets that are in close proximity to several relevant establishments, you keep them within interest to people. Take residential units near employment hubs and educational institutions as well as store or retail outlets in commercially thriving towns or cities.
At the same time, the other properties or structures adjacent to or near the asset can affect its value too. When it is near roads and transportation hubs, people would prefer it. The reason is simple. It’s because of accessibility.
Second is safety. Everyone will want a safe neighborhood to live in and a secure area to hold and do business. Safety pertains not only to the absence of crime but also to the least likelihood of accidents and calamities. Remember that even if these things happen to most areas, certain places are more flood, fire, hurricane and earthquake prone than the others.
Third is parking space. This is true for both residential and commercial units but all the more for the latter. People have cars and we all hate it when a shop we head on to has limited or worse no parking lot allotted for customers. That’s a major drawback. Check the asset regarding this at all times.
Fourth are low ongoing costs. Upkeep and maintenance of assets are essential for both safety and aesthetic purposes. These are needed to ensure that the fixed asset can be livable, operational and functional as should be. They will be necessary so you have to get an asset that has fairly low repairs and maintenance costs. You cannot call it a profitable property investment if it will cost you a lot over time. To establish the costs, you can hire the expertise of a chartered surveyor who can examine the place for you.
A commercial property is something that any business will want to acquire. Think about it. You cannot possibly run a business without a place to hold operations. Regardless of the size of your company, location and space matters. They are a necessity. So you’ve gotten yourself a commercial property recently. What’s next? Surely, things don’t stop after acquisition. So what else is there to do? Here’s a to-do list from Singer Vielle.
To Do Item # 1: Double check on documentation. – Even after the transactions have already occurred, deals have closed and contracts have been signed, it is still important to double check on your documentation. A commercial property is a huge investment for your business. It is a big ticket asset. You surely would want to ensure that it gets recorded properly within your financial statements. Remember that you have to record it based on historical or actual cost and not market value. At the same time be sure to have its useful life assessed at best.
To Do Item # 2: Make the necessary renovations. – You might want to revamp the whole place or at least change some features to it in order to fit your intended purpose for the property. By all means do so and keep it scheduled. This way no delays will occur and your operations go as smoothly as possible.
To Do Item # 3: Prep and dress it up. – What are you using it for? It is important to decorate the interiors in such a way that it invokes productivity for employees and brings in customers for sales. The ambiance and aura of any property can affect the tasks and dealings of people that go in it.
To Do Item # 4: Keep it ‘work appropriate’. – In relation to keeping the place aesthetically pleasing, it would be best to make it functional as well. After all it’s a place for work and where operations are held. Gather your team and brainstorm for ideas. Getting a professional may even help if you achieve this.
To Do Item # 5: Have maintenance on check. –After the purchase of a commercial property or even years after that, entrepreneurs have to see to it that proper maintenance procedures are undertaken to ensure its upkeep. The better taken cared an asset is, the longer it becomes of use to your business. Moreover, it prevents unwanted circumstances like accidents and keeps losses at bay as well.
Nowadays, we always hear the word “budget”. As much as we wish not to, we have to because resources are limited even though we deny they aren’t. This should however not affect our creativity and diminish our productivity. We have to find a workaround and an innovative way to work with what we have and make the best out of them. The same holds true when it comes to beautifying our homes. Are you up for the challenge? If yes then the following residential property investment tips to better interiors on a budget will be of great help. Ready?
Tip # 1: Try upping the colour palette. – You can do this through many ways. One is by utilizing rugs, carpets, curtains, table runners and linen. This will instantly update and give a fresher look to any room without. Another is by using frames and artwork either stacked on shelves or hanged on walls.
Tip # 2: Use good and creative lighting. – By doing so, you are able to create just the right ambiance for every room. Of course, caution should be done when doing this because you also have to consider the tasks performed in every area. Take the kitchen for example, it has to be well lit but at the same time not too bright to avoid glare.
Tip # 3: Only buy furniture that fits. – To avoid having to waste your money on furniture and fixtures as well as other home accessories, see to it that you measure everything first. Get the correct dimensions so you won’t have to return your purchases or worse, suffer with items that won’t work in your home.
Tip # 4: Personalize your space. – This can be achieved in different ways and all it needs is a dose of creativity. You can do some DIY projects or simply frame up photos and other memorable pieces. It not only adds a unique touch but also helps immortalize memories.
Tip # 5: Use organization and dual purpose items. – To make your interiors even better, get into organizing. No one wants a messy home in the first place. Make use of furniture that provides shelving space. This way you don’t have to buy a furniture piece and a shelving unit separately.
All of the above residential property investment tips to better interiors wouldn’t break the bank. They are affordable and at the same time effective. What do you think? Which one will you try and do?