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Property Management Best Practices

4 Rental Property Management Best Practices That Busy Homeowners Get Wrong

Real estate can be a truly rewarding asset class for both, active investors as well those who choose to monetize their vacant property. In fact, when planned tactfully, it delivers on par with high-risk instruments such as stocks. However, unlike other asset classes which see professional portfolio managers, there are only a handful of property management companies available to property owners in Indian cities such as Gurgaon Delhi NCR. This makes rental property management a huge challenge for busy owners who often end up making classic mistakes; they end up compromising on the value of their property and ROI potential.

Compromising at the time of possession

The hunt for the right property is often taxing for most busy professionals, especially if they are not based in other cities but choosing to invest in Gurgaon Delhi NCR. After months of discussions with friends, family, brokers, and builders, they arrive at a decision to buy a property. However, this leaves them with little time to follow all the due diligence required at the time of possession and registration.

When it comes to property management best practices, it is critical to examine the actual property that one is purchasing. This is because often, developers are quick to patch or superficially fix homes, just to tide over the inspection quickly. As a discerning customer and owner of the property, you need to have a keen critical eye, as well as a good idea of what to look out for.

This is where an expert authenticated checklist comes in handy. You need to diligently inspect all areas of the house as per this list. Also, you must thoroughly check the delivered home against what was promised in the seller/buyer agreement to what is being handed over. An expert & experienced eye to look for such discrepancies can be very different from a casual look. Most importantly, make a final checklist of all discrepancies found in the house and follow up with the developer to get them rectified. Agree to take the possession only after each of these has been resolved.

It is equally important that you compare the documents shared by the developer against the list of statutory clearances required by the state and the country. This can be truly taxing, but without doing this, you are essentially gambling away your hard-earned investment since developers could be notorious for flouting legalities. 

Learn about Native Sutra’s property possession management services across Gurgaon Delhi NCR, here.

Saving money and energy on home interiors

The biggest mistake property owners make with regards to their vacant property’s management is not attaching adequate value to the quality of interiors. While lack of time is the single-most factor driving this attitude, following up with local contractors and online eCommerce companies is the second-biggest deterrent for property owners, especially those based in other cities or countries.

However, it is not only important to set aside an adequate budget for home interiors when it comes to effective rental property management but also to spend time ensuring a high-value output. What is the right amount of spend on your home fit-outs and interiors without over-spending which will not only attract CXO’s as good paying and caring tenants, but also put your home on top of limited buyers list at the time of selling and also fetch you a premium over others. You need to consider working with an end-to-end property management company that can handhold you to arrive at the right solutions that are financially balanced, durable, aesthetically pleasing, high-on-functionality and appeal to potential tenants, thereby creating a USP for your rental property asset.

Learn about Native Sutra’s home interior designing services across Gurgaon Delhi NCR, for maximum property monetization here. 

Rushing through tenant onboarding

This remains one of the biggest challenges for busy residential property owners in Delhi, NCR, and Gurgaon, and therefore, one which sees them failing often. As the owner of a vacant property, it is important not to trade long-term benefits for short-term ROI.

For instance, tenant selection isn’t about first-cum-first-serve; it’s about marketing your property on multiple forums and filtering potential tenants who will take good care of your property, enhance your property’s value, and consider renewal at the end of the contract. This is easier said than done and often, the fear of losing out on immediate rental income and the pain of negotiating with middlemen makes property owners make unprofitable decisions.

Additionally, tenancy documentation and tenant check-in are two other important steps in the process that require your attention; unless you have an unbiased property management consultant handling the matter on your behalf. A slight change in the fine print of the contract or a gap in setting the right expectations for both parties at the time of check-in can greatly impact your ROI. For instance, ensuring a clear definition of minor and major repairs and cost ownership for each along with specified percentages. 

Learn about Native Sutra’s tenant management services from some of our long-term clients.

 

Skipping regular home health check-ups

Very few property owners have the time to personally visit tenants on a regular basis to check on their asset’s health. However, this is a huge mistake one can make since it gives you zero visibility about the wear and tear and drops in your asset’s market value owing to the same.

Just like you receive regular and real-time updates on your phone about your investments in other asset classes, you need to consider a property management company that does the drill for you and presents you with updates.

In fact, an ideal property management company would be one that also handles end-to-end repairs to ensure your property’s good health.

Learn about Native Sutra’s end-to-end property management services here.

To sum it up, when it comes to rental property management, there are several best practices that one needs to consider for effective ROI and monetization. These go beyond simply giving out your property on rent to the first tenant who is willing to meet your price. Like all other asset types, vacant and rental properties deliver the best returns when you take a diligent approach and unbiased professional guidance.

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