Note: the words “lease” and “tenancy agreement” are interchangeable.
I know all this. Just take me to where I can choose a document to buy.

Contents:

Planning issues
Excluding security of tenure
Issues for landlords
Tenants – lease or buy
Tenants – tips for negotiating a business property lease
Landlords – tips for negotiating the business lease terms
Terms in your lease

Planning issues

Planning use
As well as checking with the local authority that his proposed use is lawful, the tenant should make sure that the landlord knows exactly for what he intends to use the building, and that it is approved. It is important that a tenant considers his future requirements here. It is very easy to change the direction of a business and find you fall foul of your lease. For example, a manufacturer may not at first consider that he might want a cash and carry or factory shop division a few years later. Alternatively, a tenant may want to dispose of the lease to someone who wants to use the building for a different purpose.

The question of user is of course more important in longer leases where the use is much more likely to change over time. Solicitors for landlords who do not have much property valuation knowledge, frequently fix the use clause narrowly – perhaps with the thought that if the tenant needs to change the use in any way he will have to come back to the landlord, and perhaps pay a fee or more rent for the privilege.

He misses the point however that at a rent review the new rent will be calculated by reference to the rack rent (then current rent) payable in the open market. Clearly, a theoretical open market value would be lower if the number of potential tenants is fewer. A landlord should therefore think particularly carefully before imposing a use restriction which limits a change to a use which in fact provides a lower rental value than some other potential use. Generally speaking, the wider the use allowed, the greater the rental value.

Excluding security of tenure
If the lease is governed by theLandlord and Tenant Act 1954, and most leases are, the tenant has a right to security of tenure. This simply means that they have a right to continue using the property and renew the tenancy on the same terms so long as neither of the parties objects.

Under the new Regulatory Reform Order 2003, a landlord can only refuse to continue the tenancy if the tenant has done one of a few things (see our article on Security of Tenure for full details). One example might be that the tenant failed to make regular payments.

If the landlord is happy for the tenant to continue in occupation under the terms of the original
Lease, he should serve a ‘section 25′ notice to that effect.

Issues for landlords

Prescribed Lease Clauses
On a lease over seven years, it is now mandatory that you make sure that it contains ‘prescribed lease clauses’ at the top of the agreement. All Net Lawman documents provide for this and explain how to complete the clauses. The PLCs have been designed to speed up the registration process at the Land Registry office. For more information, please read our articles on Prescribed Lease clauses (part one) (part two).

Tenants – lease or buy
When your business requires it’s own premises a decision must be made as to whether to lease or purchase commercial property. If the answer is not immediately obvious to you, here are some of the considerations:

In a commercial property lease the risk is taken by your landlord. The rent is likely to be fixed for a number of years, and will then be increased in line with the general level of rents for similar properties.

Tenants – tips for negotiating a business property lease
After salaries, the cost of your business lease is likely to be the biggest overhead you have. Because a business lease invariably involves a commitment for a substantial period of time, it is very, very important to get the right premises on the right terms. Here are a few tips:

Write down absolutely all the features you need in your new premises. Put them in order of importance. Check every property you visit against your list, and make sure you account for any additional cost or disadvantage which each may present;
Short leases are often called tenancy agreements, but there is no difference in law. You can fix your deal for any period you like. If your landlord likes the thought of your becoming a tenant he will ask for a long term. If you do not wish to be tied then you will negotiate a short term. Start with the deal that you would like, not the one that is presented to you;
Business property tenants have less statutory protection than residential tenants. (But see below). Most commercial landlords are either professional landlords or use professional agents, or both. They are experts in every aspect of commercial property. You may not be. Most commercial agents are also experts at negotiating lease terms on behalf of their clients. Again, you may not be;
The main effect of the comparatively free market in commercial property is that “everything is up for grabs”. If the agent or landlord thinks you are likely to take the property on offer it is unlikely that they will move on the terms. If you make it clear that you have several alternatives, then you will find that the previously “fixed” terms suddenly become very flexible. Much depends too upon the state of the market. A landlord may well be tempted to hold out for his set price and terms if he thinks someone else will come along soon and accept them;
If the market in the sort of property you want is poor at the time you are searching, then you should make sure that there is some sort of a ceiling on the new rent when it is reviewed. You do not want to find you are paying three times as much in three years time;
Business property leases for longer than three years generally incorporate a provision for the rent to be “reviewed” every three, four, or five years. The review is usually “upwards only”. Infrequent reviews obviously lead to your total payment being less over the term of the lease;
Commercial agents will usually entice you into a deal by setting out only half of the terms which are important to you. Once you have agreed on that basis your solicitor will receive a draft lease document, which gives all of the bad news. By now you are psychologically and practically committed to the property, and you may find your solicitor’s concern to be an irritation. Because you think the deal has been done, you think “the legals” are a formality. You will sign anything. You can avoid this trap by making sure your deal with the agent or landlord covers all of the terms that will affect you. If they do not know the answers, ask them to find out and tell you quickly. Get it in writing. You are not paying them! It is far cheaper than paying your solicitor to negotiate;
This also saves wasting solicitor’s fees if you later decide to withdraw from the deal. You can use a Net Lawman lease document as a model version. The commentary will help you set up your shortlist and tell you what to expect;
If you take a lease of part of a building, such as a shop in a parade, you will find that some of the terms in the lease may be included for equality and fairness among the tenants. An example might be the division of cost among the tenants for repairs to the roof. It is unlikely that you will be able to negotiate any change on terms of this type. You need to consider in advance what they are before you waste time negotiating inflexible terms;
Some landlords run a multi-let building or estate on the basis of a “standard” business lease, because they have made special arrangements with a lender to maintain the lender’s security by insisting that all units are let on terms which ultimately benefit the lender if the landlord goes bust. Such a lease is often referred to as of “institutional quality”. A cynic might say it is the opposite of “tenant quality”. A further reason for inflexibility is that the commercial agent now trying to sell you the lease, also “manages” rent collection and repairs and maintenance. They therefore have a strong interest in all the lease obligations being the same, since their job of managing would be more complicated if every tenant had different obligations and rights. One of your questions to the agent at the outset should therefore be as to the flexibility of the lease. If there is no flexibility you should look particularly carefully at the obligations you are being asked to sign;

Landlords – tips for negotiating the business lease terms
Generally speaking, the market allocates a higher return to property types and locations where the perception of risk is greater. Factors include;

The chance of tenant default;
Ease of re-letting if tenant defaults, and time taken to find new tenant;
Value of property;
Perception of increase in rental value, which will feed into a higher capital value;
Acceptability as security for a loan;
Extent of regular management work;
Cost of repairs and other expenses;
Location;
It follows that a multi-let industrial

One of these ways, which Torcana identified more than two years ago, is to purchase highly discounted and undervalued properties from distressed sellers. To maximise the return and minimise the risk of these types of properties, they must be purchased

- in wealthy, democratic economies
- with a history of renewal and recovery from recessions
- in fundamentally sound cities and neighbourhoods
- where locals rent long term
- where locals have and are currently purchasing these properties

Apart from that, the properties must be fully completed, cashflow positive and in well located and well run buildings or communities.

I´m sure there are plenty of other types of properties that can make you a healthy profit, but these are the ones we´ve identified with the best risk/reward ratio. It´s difficult to see how these kinds of properties will give any serious problems over the next 5 years and the potential benefits are huge.

So our criteria is very strict, but we´ve found plenty of properties that tick all these boxes and the latest is Arbor Lakes in Orlando. Here you can buy for 30 cents on the dollar in a beautiful and pre tenanted condo with 7-9% net rental yields.

If you haven´t received an information pack, please send an email to investments@torcana.com and request one.

Making the decision to become a professional property developer and invest in property is no easy step. Is it one that requires a lot of thought, consideration and time to ensure you are making the right decision.

If you too are struggling to decide if property development is the right route for you, then the following FAQ can help put all your concerns to rest:

What is property investment?

There are many misconceptions about property investment and what it exactly entails. The most common route you will encounter – and hear of – is renovation, where you buy a property with the purpose of doing it up and selling it.

However, whilst this niche was profitable during the property boom of 2007, this investment technique unfortunately is less effective during economic downturns. That is unless you have got the cash to turn the property around fast and quickly get it back on the market.

The other route however – and the one we recommend to you – is buy-to-let. With buy-to-let, you can invest in property based on the areas tenancy demand and ability to produce positive cash flows, and generate month on month incomes simply by leasing your property development to tenants. There is no need to sell…

What makes property investment different to stocks, bonds or shares?

The fact that it will never go into zero values! Although stocks, bonds and shares can help you to experience annual returns of up to 25%, they are also prone to dipping down to -8% leaving YOU out of pocket.

With property it is a much different story. Even in a recession, properties can still produce annual returns of up to 25% – if you invest correctly – making it a much safer, more stable investment route.

Do I need capital to invest?

No. Equip yourself with the right strategies, and it is possible to invest in property using little if any of your money and purchase properties without putting your own home at risk.

Investment strategies such as No Money Down or No Deposit Down are specifically designed to help you invest with minimal costs involved. All you will have to worry about is your legal fees and stamp duties; yet even then it is possible to negotiate such property discounts that your property will essentially pay for itself.

Do I need experience?

Despite what the media would like you to believe, you don’t have to have prior property investment experience to make a profit from property.

The key to achieving long term successful investments is to: equip your property portfolio with the right investment strategies; negotiate the right property price discounts, but more importantly ensure that you only invest in properties which can produce the positive cash flows and tenancy demand you need.

Attending a property development course can help to equip you with such investment strategies. Just make sure that you thoroughly research these property development courses first, check their history/case studies and only sign up to a course that can offer you at least 5 investment strategies.

REMEMBER: Not all investment strategies will work in all financial climates, which is why having plenty of choice can come in handy.

How do banks lend money for investment property?

Unlike applying for a mortgage where your lending amount is based on how much you earn, buy to let investment is assessed very differently.

Here, all lenders require is that your property is able to generate 125% of its mortgage repayments through buy to let. Meaning choose wisely and it is possible to invest in bigger and better properties, than you normally would be able to if it was based on your salary.

What are the best properties to invest in?

There is no fixed rule to this exactly, although residential properties do primarily win in the investment stakes against commercial property and land.

When you are researching potential property developments, the key points to take into consideration are the properties tenancy demand; the mortgages deals available and the positive cash the property can generate. As long as there is the demand and the property can produce at least £300 in positive cash flows, then it doesn’t matter if it is a terraced, semi-detached or detached.

This information aside, economic circumstances can make one property type more popular than the other. During the recession for example, studies found that tenants preferred living in terraced properties compared to all other property types because they were better designed and more energy efficient.

What is positive cash flow?

Positive cash essentially represents the income left over from a tenants rent after the properties mortgage repayments have been deducted. So, the larger the properties positive cash flow, the more profitable the property is.

Is it possible to invest in all financial climates?

Yes. If you are looking to enter specifically into the buy to let investment market, then with the right investment strategies, brokers and negotiating skills, it is possible to invest come property boom or economic crisis.

Take the recent recession. During the last 2 years we have been confronted with property price discounts of at least 20%; base rates of only 0.5% and a tenancy demand that has increased by 24% alone during the last quarter of 2009.

However, even with the property boom of 2007, property investment was still powerful asset as it encouraged rapid capital growth which in turn prompted rental increases and larger positive cash flows.

The financial climate does not have to play a factor in your decision to invest; only help you to determine which of your investment strategies will be most effective.

Is it possible to invest abroad?

Your property portfolio does not have to remain restricted within one city, region or country. UK, USA, Europe or Australia… with the right strategies all properties can be transformed into credible property lets.

The only thing you should be cautious about when investing abroad is familiarising yourself with their property laws and investment regulations. Every country is formatted using a different system, and will employ different methods for lending, organising repayments and structuring property leasing.

Do I have to give up my day job?

No, far from it. The great thing about property is that you can easily research, invest and build your property portfolio in your spare time – for as little as 1 hour property per week – and continue working your day job.

You can even employ a property manager to take care of your properties, and ensure that your rent; maintenance issues and tenant problems are quickly resolved without need for your assistance.

Even when the Board of Health at last compelled him to repair and clean up the worst of the old buildings, under threat of driving out the tenants and locking the doors behind them, the work was accomplished against the old man’s angry protests. He appeared in person before the Board to argue his case, and his argument was characteristic. “I have made my will,” he said. “My monument stands waiting for me in Calvary. I stand on the very brink of the grave, blind and helpless, and now (here the pathos of the appeal was swept under in a burst of angry indignation) do you want me to build and get skinned, skinned? These people are not fit to live in a nice house. Let them go where they can, and let my house stand.” In spite of the genuine anguish of the appeal, it was downright amusing to find that his anger was provoked less by the anticipated waste of luxury on his tenants than by distrust of his own kind, the builder. He knew intuitively what to expect. The result showed that Mr. Murphy had gauged his tenants correctly.

Australia has a relatively recent history in apartment buildings. Terrace houses were the early response to density development, though the majority of Australians lived in fully detached houses. Apartments of any kind were legislated against in the Parliament of Queensland as part of the Undue Subdivision of Land Prevention Act 1885.

Leeds Property Management Inc News :The square footage of a house in the United States reports the area of “living space”, excluding the garage and other non-living spaces. The “square metres” figure of a house in Europe reports the area of the walls enclosing the home, and thus includes any attached garage and non-living spaces.

About Leeds Property Management Inc

Apartments can be classified into several types. In North America the typical terms are a studio or bachelor apartment (efficiency or bedsit in the UK). These all tend to be the smallest apartments with the cheapest rents in a given area. These kinds of apartment usually consist mainly of a large room which is the living, dining, and bedroom combined. There are usually kitchen facilities as part of this central room, but the bathroom is its own smaller separate room.

Shibam is often called “the oldest skyscraper-city in the world” or “Manhattan of the desert”, and is the earliest example of urban planning based on the principle of vertical construction, as it was the first city to consist entirely of high-rise residential buildings. Some of them were over 100 feet (30 m) high, thus being the tallest mudbrick apartment buildings in the world to this day.

The cardinal attraction of the property in Dubai is its low prices that are one-third per square meter as compared to the property in the US. Apart from it, one can economize through the tax-free income in Dubai against the vast revenues in the US.

The rent prices have inflated to a minimum of 10% to a maximum to 50% in past two years. This progression in rates is drawing in the investors into property and to combat this hike, people are shifting to permanent property from lease.

Property in Dubai offers the perfect pedestal for the markets of Central Asia, Middle East, Africa, Asian Subcontinent, and East Mediterranean. A multinational company that wishes to maneuver the 2million people of this area with their GDP of U.7 trillion ought to earmark property in Dubai.

The economy of UAE is flourishing as ever with the rising oil-revenues. The national economy turns out to be a boastful add-on for the property in Dubai.

Various financial institutions are forthcoming with diverse mortgage and security rate options. The prime objective is to reduce the cost of borrowing. With so much to offer and aiming to cost lesser, the property are adjuring with the gleam of gold.

The salient features that the property offers are expanding its market substantially. The demand has amplified enormously. Dubai has emerged out as a commercial hub where all dealers want to invest considering the lucrative possibilities. It is becoming difficult to locate property in the key areas due to the tremendous demand. With this rapid bloom, it is anticipated that the property will experience a further increment in its monetary value.

The major property areas in Dubai have highlighted themselves as the ‘drawing card’ for which everyone has a quest. With the expansion of Dubai as a commercial platform, it is attracting more and more expatriates. Hence the demand is outlasting the supply and there is a stage of imperativeness being developed that causes an acclivity in the monetary value.

Dubai has a lot more to dispense than just property. The egression of the commercial environment has brought with it a new era of lifestyle and glamour. The efflorescence of malls, hotels have given a new dimension to leisure and entertainment. Dubai has turned out to be the ideal destination for all shopping-lovers. It offers an avid and luxurious environment. With the connectivity to other countries via airport and other global means, Dubai offers the nonpareil blend of connectivity, investment, globalization, and commercialization and a property in Dubai gives a countenance to avail all these perquisites.

If you want to reduce a price, you can start by asking an incompetent agent just four questions.

1. “Why are they asking this price?”

You don’t have to say anything else. This question immediately puts the agent in the position of having to defend the price. And, if the agent is concerned about the price – as most of them are – you will often be given a reduction. The response is likely to be, ” Well, it’s a bit high, I know. But they will listen to offers.”

You can use this question for any product. It doesn’t have to be real estate. No matter what you want to buy, you can ask the reason for the price. It works in dress shops, it works in hotels, it works everywhere. All you say is, ” Why are you asking this price?”. And, if there is any chance of a reduction, you will get it.

Incompetent agents assume that a question about the price means the price is too high. As most agents want to lower the price to make a sale, they will admit that the price is high. They will try to get it cheaper for you. They won’t realize that you may buy at the price being asked. Buyers often say the reason they didn’t pay more for a home is that “the agent didn’t ask for more.”

So, when being asked with this question, the best agents answer this question by saying: “They are asking this price because…..[points out the positive features - location, condition and so on].” End of answer.

2. “Why are they selling?”

This is where incompetent agents reveal the sellers’ confidential reason for selling especially when the reason is not in the seller favor. The answer will be something like, ” Oh, they are getting divorced,” or “They are in a bit of financial difficulty,” or “They have bought something else and they need to sell this to pay for the other place.” It most defies belief that a professional person could reveal such details. When you know that the sellers are forced to sell, who can blame you for offering a lower price?

The best agents answer this question by saying: “They are selling for personal reasons but I know they are serious.” End of answer. This eliminates the dilemma the agent could be facing in upholding his fiduciary duty while at the same time being truthful without lying. Of course, if the actual situation is good for instance, like the owner is upgrading and need a bigger place, relocating to be near parents or school or migrating, then it’s fine to say.

3. “How long has it been For Sale?”

The longer a home has been for sale, the more likely it is to sell for a lower price. The perception is that the owners will be getting desperate and will accept a lower offer. Often this is true. The incompetent agent will answer this question by saying something like, “Oh, it’s been on the market for a while but they will listen to offers now.” The seller is again vulnerable to a low offer.

The best agents will answer this question by saying, “It has been for sale for six weeks (or however long) but we don’t expect it to be for sale much longer.” The seller is protected.

4. “What will they take?”

This is where the incompetent agents can really cost the sellers thousands or even hundred of thousands. Their answers to this question can be incredibly negligent. Assume the home is priced at S,500,000/- One of the common responses goes something like this: “Oh, they did have an offer of S,350,000/- which they accepted, but the buyer found something else, so I know you can get it for S,350,000/-”. If the home is what you want and you can afford S,500,000/- , the agent has just handed you at least S0,000/- of the sellers’ money. Incompetent agents always reveal sellers’ lowest price in response to the “What will they take?” question.

The best agents will answer this question by saying: “Well, I know they will take the asking price. Did you want to buy it?”

These four questions show how incompetent agents under-sell homes.

For more info log on to search Singapore property, Singapore property search

In Scotland landlords already have to licence HMOs. And from April all Scottish landlords will require a licence, no matter what type of rental properties they own.

In both Scotland and England and Wales, licensing of HMOs has been introduced primarily, say the legislators, as a safety measure particularly aimed at reducing the fire hazard in student digs. It is just the type of larger three storey properties typically rented as student bedsits that pose the biggest risks, they say.

However, the licensing of all landlords in Scotland has been introduced in the context of curbing anti-social behaviour by tenants. And there are some elements of this in the licensing of HMOs in England and Wales as well.

It was the Housing Act 2004 which brought in the requirement for HMO licensing in England and Wales. Other Housing Act measures included the introduction of the controversial Home Information Packs that from 2007 will be needed before properties can be sold, and the requirement that landlords participate in deposit protection schemes – as from next October.

Houses in multiple occupation are already subject to special rules and in some areas registration schemes, while many local authorities and universities already run voluntary landlord accreditation schemes. Local authority environmental health departments have always had powers to require work to be carried out to make sure that HMO properties are adequate and safe. However, the Housing Act provisions which come into effect next month will require all those properties within the statutory definition to be licensed.

Licensing will be in the hands of local authorities, which appear to be in various stages of preparedness. Some have yet to set their level of fees. Brighton & Hove, for example, has said it will set its licensing fees on 30 March and that it ‘hopes’ to have application forms ready very shortly after that date.

It is clear there will certainly be variations from local authority to local authority, especially on the level of fees, but also the promptness of inspections and other assessments.

All authorities will licence HMOs that fall within the statutory definition, some will also be using ‘additional’ licensing powers to licence other HMO properties. Most, it seems, have enough on their licensing plates for now and will defer any decision on additional licensing until later.

Leeds, for example, has said it intends to consider whether to apply additional licensing in a year’s time when it has dealt with all 8,000 HMOs in its area that its estimates will be subject to mandatory licensing. Meanwhile, Southampton has agreed to introduce additional HMO licensing, but when mandatory licensing is up and running.

Rushmoor Borough Council said it is planning to consult landlords, tenants and other interested parties on whether to license other types of HMO. ‘We would prefer to license all properties that currently have to be registered, including two storey properties’, it said.

Although the licences local authorities will issue are for properties rather than landlords, there will be three prongs to the licensing process, two involving landlords themselves. First local authorities will assess whether applicants are ‘fit and property’ to be HMO landlords and will have to be satisfied about the management standards they will apply. Later, or in some cases more immediately, will come inspections to ratify landlord statements that the properties themselves are fit for purpose. As licences will state the maximum number of people each property may house, this will include an assessment of the suitability of amenities for the intended number of tenants.

When it comes to management standards, licensed landlords will have a duty to take reasonable steps to ensure that tenants are not causing problems within the boundaries of the property through anti-social behaviour. Local authorities may in some instances put conditions on licences concerned with anti-social behaviour.

The Government has specified minimum amenity standards, setting out the requirements for kitchens, bathrooms and toilets in HMOs. Local housing authorities may use their own amenity standards if they are equal to or higher than the minimum standards. This means landlords will have to contact their local authorities to confirm the standards to be applied in their own areas.

In the case of properties with insufficient amenities for the number of tenants the landlord wishes to house, local authorities will include conditions within licences stipulating that the required extra amenities are provided within a specific time. Alternatively they could grant licence for lower maximum numbers of occupants. In some instances they may even conclude that a licence cannot be granted until the condition and amenities within a property are improved.

The new Housing Health and Safety Rating System, which applies to all residential property, also comes into effect next month. When licensing HMOs, local authorities will have to satisfy themselves that there no ‘category one’ hazards within properties. They may carry out HHSRS inspections to verify this prior to granting licences or at a later date.

HHSRS covers 29 different areas of risk, considerably extending the current nine point housing Fitness Standard. Assessment of these risks will culminate in a ‘hazard rating’ applicable to each property. Within each area of risk possible harm or adverse health consequences are categorised according to the perceived severity, and scored accordingly. There are four classes of harm, of which ‘category one’ are the most severe. These are risks that could lead to death, permanent paralysis below the neck, regular severe pneumonia, or 80 per cent burns or worse.

Landlords who already belong to local authority accreditation schemes are likely to find the licensing process a little easier since in many instances they will find themselves ‘passported’ into the licensing scheme and in some cases will receive discounts on councils’ fees.

Properties caught by the mandatory licensing requirement are those of three or more storeys with five or more occupants who form two or more households – households being partners and relatives living together – using shared facilities such as kitchens and bathrooms.

They do not have to be houses but can be part of buildings let to five or more unrelated people even if the tenants have signed a joint tenancy agreement. Attics and basements are included in the storey count if they are used as living accommodation.

Although the intention of legislators was to cover older properties, the statutory definition of HMO properties requiring a licence will also catch some newer properties, such three storey town houses if rented to five or more people.

As well as expecting to have to prompt some landlords to apply for licences, some local authorities are expecting to receive applications from landlords whose properties are not covered by the licensing requirement. This is in part because there are two definitions that apply to HMOs – the wider one that applies to all HMOs covers:

* entire houses or flats let to three or more tenants from two or more households who share a kitchen, bathroom or toilet;

* houses converted entirely into bedsits or other accommodation that is not self contained, let to three or more tenants who form two or more households and who share kitchen, bathroom or toilet facilities;

* converted houses containing one or more flats which are not wholly self contained, occupied by three or more tenants who form two or more households and who share facilities; and

* buildings which have been converted entirely into self contained flats but the conversion did not meet the standards of the 1991 Building Regulations and more than one third of the flats are let on short term tenancies.

In each case the property must be used as the tenants’ only or main residence and it should be used solely or mainly to house tenants. Properties let to students and migrant workers will be treated as such tenants’ only or main residence, and the same will apply to properties which are used as domestic refuges.

All of these properties could be subject to mandatory or additional licensing requirements, but not all are. It is only those that are of three or more storeys with five or more occupants that in fact require a licence.

Recent comment appears just to have woken up to the idea that licensing fees will at some point have to be passed on to tenants by way of increased rents.

Fees are supposed to do no more cover the costs of licensing and the hope was they would be standardised. However, those fees set so far vary in structure and amount, and in many cases they will total 1,000 pounds or more over a five year licensing period. In some cases, but not all, there will be refunds or reductions where properties fall out of the HMO mandatory licensing definition during the course of the licence. However, licences will not be transferable and where properties are sold as HMO going concerns, the new owners will require new licences of their own.

As examples of

The Questions to ask when looking for a Rotorua Property Management Company.

Now you’ve got an investment property the next step is to find someone to take over its management. Do your research and list questions you would like to ask when interviewing possible property management firms. Short list a few companies that interest you.

Phone them to raise questions then, if you’re still interested; make an appointment to visit in person. Visiting in the flesh gives you an idea of how they conduct their business and you can meet the people that will represent your interests. Here are the top 5 questions that should be asked when you interview a property manager.

1. Does the Company have a Dedicated Management Arm?

You need to find out whether the property management company offers a total service or if it is just a side line for a real estate office. Who and how will your property be managed. How many staff are in the office? Who will deal with you and your tenants if staff leave or are sick?

2. Will the Company Owner/Director get involved in the Business?

Most property management firms are divided in two – selling property and managing property. Sometimes the company director is concerned with the sales side as it is the high profit area of the business and a property manager takes care of leasing. If the property management arm of the property management arm of the business, you can it more seriously than others.

3. How well do they know the Rotorua Property Management Business?

Check with the property executive how long they have personally been working with Rotorua property management. Just because you are talking to a well known real estate company does not mean their staff have plenty of experience. It also does not mean they provide top quality customer service.

Some property executives start out working in a property estate office as the office person and work their way up. Some move into property management and the rest into sales. Other property bosses have in particular selected property management as their career.

4. How long has the Property Executive worked for the Company?

You want a property manager that’s stable in their employment, and who takes taking care of your interests seriously. There is a lot of stress concerned in property management, with a high turnover of staff. In half a years time, you need to be speaking to the same person to build a business relationship that understands your requirements and the property. This is a good reason to go looking for a property chief devoted to it as a career.

5. What Area will the Company Service?

You are right to consider companies that have expert local data but, if you want purchasing more Rotorua properties in the future, how far does their expertize reach?

You do have a choice – either hire a Rotorua property management company
that knows the local area very well – or employ a nationwide provider who may not understand the specifics of the local market.

6. How do they Conduct Property Inspections?

This is really an important one – the last thing you need is for a property boss to just hand out your keys to prospective tenants. Too much can go wrong. You would like to know that the property manager will give good purchaser service and personally take potential renters to inspect your property. Or, they may hold open houses at particular times. This gives them a chance to get to know a future renter better.

7. How many Properties will the Company Manage?

You need to know how many properties the property manager manages personally. Some could have two hundred or more. If they do, I wonder how they can provide you and your tenants top purchaser service. Others could have only up to 150 but charge more for their service. This could be a better option to get peace of mind and, ultimately, and, finally, make a good return on your investment property.

8. Will the Company’s Staff Work 6 Days a Week?

You want a property management company that may show your properties when it is handy for the tenant. After all, you need renters that may pay the rent so that suggests that most will be at work during normal business hours ; unless it is a commercial property for rent. Worldwide the planet of net advertising, enquiries come in twenty-four hours a day. This boils down to their availability and capability to cope with upkeep issues as well.

9. Will the Property Executive Check New Renter’s Credentials?

It is crucial to ask the way in which the property management company checks out the credentials of short listed prospects. You want to reassure yourself they check people’s credit and rental history, and their past and present employment.

All possible renters must be screened punctiliously. Does your property executive have sufficient access to information for this purpose? Do they supply you a written report that backs up their claims when handing over short listed prospective tenants?

To talk to the experts in Rotorua Property Management conatct us today at
http://www.russellhardie.co.nz

The Escritura Publica and Nota Simple

The Escritura Publica is the registered title deed of the property. It is entered in the ‘Registro de la Propiedad’, the Property Registry, and is the only guarantee of title in Spain. It contains a description of the property, the details of the owner and any mortgages or legal claims that exist against the property. This document is important because it tells you if the seller is the owner of the property being sold. A nota simple contains further details of any mortgages or charges against the property and is also available from the Registry.

The IBI receipt

Before purchasing a resale (not new) Spanish property check out the ‘lmpuesto sobre Bienes lnmuebles’, or lBI, which is the municipal property tax. Ideally, you’ll be able to see the IBI receipts for the last five years because that is the limit of liablity for unpaid back taxes and is attached to the property, not the owner. A new property bought from a developer will not have an IBI receipt (because it has never been ‘owned’) so it will be your responsibility to register the property for this tax.

The Referencia Catastral

Every property sale must quote the ‘Referencia Catastral’ of the property in question. The Catastro is another system of property registration in Spain, concentrating on the location, physical description and boundaries of the property. While the Property Registry focuses almost exclusively on ownership and title, the Catastro is concerned with property valuation.

These two systems do not communicate with each other, and it is common to find that the catastral description of a property differs greatly from the one in the Property Registry. It is a good idea to request the actual certificate from the Catastro with a full description of the property. The certificate is in two parts, one being a description of the property and the other being either a plan or an aerial photograph.

Community fees, statutes and minutes of the AGM

This only applies if you are buying a property in an urbanisation or where there are some ‘communal’ resources, shared amongst a number of properties. These are the fees charged by the ‘Comunidad de Propietarios’, the Community of Property Owners, a legal body that controls all the elements held in common; the lift, gardens and pool for example. Each owner is assigned a quota, or percentage of the expenses which, by law, must be paid.

Utility bills

These assure you that the bills are paid and also provide an idea of what the running costs of the property will be.

Misc

If you are buying a property in an urbanisation, make sure that it is legal and registered by asking to see the approved ‘plan parcial’ at the town hall. If the property is on the beach, make sure the development is also approved by the Jefatura de Costas. For a new property, make sure that it has been declared for IBI and that the developer has made the ‘declaracion de obra nueva’. Also ensure that the escritura mentions the house you are purchasing as well as the plot of land on which it stands. As an additional safeguard, it is wise to examine the town planning maps for the area around the property, called the Plan General de Ordenacion Urbana, or PGOU.

The profitability of your property is dependent on hiring a qualified helpful and professional property management company. Hiring the wrong management company can mean losing thousand of dollars, or more. Property owners who hire the right OC property management company however, can enjoy the benefits of a lucrative property investment. Some of the most common, and often, detrimental mistakes a property owner makes is not doing enough research. The more research you do, the more you can avoid hiring a bad management company.

Property management companies that also sell properties, often nation wide corporations like Century 21, etc. are often a bad idea. They usually are primarily real estate agents, who also do property management because they want to manage when you choose the sell the property. A property management company like this is not a good idea because they make more money selling than managing. You would benefit more from a smaller, specialized company that deals only with property management in your area and nothing else.

For example, if your property is in Huntington Beach, you should try to find a local expert Orange County property management company that has a much experience in the local area only. Make sure you check the references of your management company’s other clients. Don’t be afraid to make a few phone calls, and get a good track record. You shouldn’t sign anything before you have a good idea that the company you’re hiring is the best at property management in Orange County and one that you can trust. On the other hand, as an owner, you shouldn’t be too demanding of references either. A good property management company will not release all of their clients’ information to you,

because it is private and confidential information. The management company won’t be making an obscene amount of money managing your property, so they can always tell you to take your business elsewhere if you are being too much of a pain. You will do well with around 3 references to talk to, and get an idea of how they work with their clients. Some other things to keep in mind: Is the company licensed in the state of California? Is the company insured? Do they have a fidelity bond to protect you in case an employee mishandles your money? Will they provide you with reports? Will they market your property? How do they deal with late charges? How do they handle tenant complaints? And so on. These are some tips for making sure you hire a good property management company that will professionally and efficiently manage your property, helping you turn your home/apartment/condo/commercial property into a steady investment.