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Rental Property Management – The How’s and Why’s of it

Top 5 Rental Property Management Tips – The How’s and Why’s of it

Over the last decade the equation giving out properties on rent and managing them has changed quite a bit. It has become more professional for sure. But there are still times when the whole landlord – tenant equation goes for a toss like for example: The tenant won’t pay rent on time; the tenant will make unreasonable demands; the tenant may cause damage to the property and so on. It is always a wise decision to not be the bad guy as a landlord and hire a professional manager to take care of such issues. However one should always keep in the mind the “Top 5 Rental Property Management Tips – The How’s and Why’s of it” that will help manage rental properties a breeze.

Inventories: As a thumb rule, before giving a property on rent do document the inventories at the rental property. For example: A list of furniture and fittings and the condition they are in. It is done in the interest of both the landlord and the tenant. When a tenant is on their way out, the property manager/ landlord can match the list and in case of any deviation settle it amicably.

Create a Policy: As a landlord giving out one or many properties on rent, one should have a policy in place which can be shared with prospective and actual tenants. For example: Rent to be received by 10th of every month; the landlord will be available between 4 and 7 pm for a call; a late fee will be charged in event the rent is received late. This policy making may seem tedious in the beginning but it makes things very easy. For example a tenant may come and want to negotiate the payment date or pays late, then one can always refer to the policy and say “Well I am sorry, but our policy states that….” This helps in clearing any doubts.

Avoid Family: Include friends as well. Giving a property to friends and family is always tricky. It may swing both ways as a relation but most likely it is going to be negative, going by our experience. It is advisable to stay clear of family if they are looking for a place to rent. One can guide to similar properties, locations or agents but stay clear of giving your own property on rent to them.

Be Organised: Treat every transaction with your tenant as professionally as possible. Keep files pertaining to all the tenants that will include all documents like the Landlord- Tenant agreement, copy of all rent received and receipts issued, inventories of the property, damage and repairs done. The more organised one is, more easily things will be actioned upon.

Hire a Professional: If one is not full time into property letting out business, they should consider hiring the services of a professional who can act as a bridge between the tenant and the landlord. This way for a small fee all headaches like rent received, deposits, chasing late payments and looking after repairs, can be taken care of.

Build and Optimize your Real Estate Portfolio –

Traditionally investing in real estate has always been profitable. Whether one is saving for retirement or for emergencies, real estate has always been part of investment plans, however small. Once decided to invest in real estate, it is important to learn how to build your portfolio. All it takes is a little discipline, keen observation and reports that are available on the public domain to make informed decisions. One doesn’t need to be wealthy but smart to build and optimize a good real estate portfolio. Here are top 4 tips to build your real estate portfolio

Start early: Investment in real estate is nothing to be scared of and it is certainly not to be done when certain milestones are crossed. One can begin investing anytime, the earlier the better. Often one doesn’t large reserves in banks to spare but with well-paying jobs and good cash flows as a result of that, the credit taking appetite surely increases with time. It is a good idea to meet a loan officer at a bank and find out the details of taking a loan for acquiring a property. Usually as experience says, most of the money required to purchase a property is given upfront. Based on cash flows, do the mathematics including monthly expenses and EMI’s. If you are able to manage, investing in real estate is always a good idea.

Start Small:  For investing in real estate, one has to be patient. The returns are not instantaneous but spread over a long term. The longer you hold on to the real estate, the more you gain depending on the market dynamics. Hence, one should start small and continue to work upwards. For example one could acquire a property and give it on rent. And the rent money could substantiate the EMI’s. Once that process has stabilised one could start looking at investing in another real estate property be it residential or commercial. The idea is to maintain a profitable portfolio.

Look for Deals: The trick to success is to be aware of the market and keep a keen eye on deals that are available in the market. There could be properties available in the market for a bargain because of distress sale or a far location. Research has shown that investing in far locations have sometimes proved beneficial for investment purposes, because one gets to buy at less and able to sell at peak in a few years’ time.

Leverage: Real estate investors leverage their money to buy property by using a network of banks and private lenders. The more properties you are able to spread your resources, the more potential to succeed in building a healthy real estate portfolio. It’s best to keep savings aside for emergencies and not invest emotionally.

Technology has over the years helped in making informed decisions related to investments and tracks the progress of each real estate investment. One can now even invest in cities where one is not residing. The opportunities are immense and we at  working with our clients to help them with their investments. You can write to us at or call us at +91-9821391006 to know how we can help you.

Real Estate Market Trends vs. Forecasts – What to go by?

In the last few years, the real estate market trends in India, have not been encouraging. The markets, especially in the residential properties segments, recorded a slowdown. The prices have remained stable with multiple options available for the buyers, though the commercial real estate has been optimistic. Also the capital appreciation in the short term has not been significantly high.

Given the background, the real estate industry is also regrouping themselves with major players working on delivering projects and building their portfolio to gain trust. Also with the new government policies like Make In India, FDI and 2020 vision, things are looking optimistic for the real estate market. The recent Start-up India will also give an impetus to the real estate market. Based on studies and experience the forecasts for the Indian Real Estate Market looks very promising. The top 3 highlights are:

Tier II cities: The meteoric rise of the Indian real estate market, specially in metros like Delhi, Bangalore, Mumbai and Hyderabad can be attributed to the technology and start-up hubs. It is now the time for the Tier II cities like Indore, Lucknow and Chandigarh to taste success. Local and national level developers are now focussing on the Tier II cities like Pune because of aspirations, successful business start-ups and steady growth in employment opportunities.

Simple payment structures: The developers and banks are working towards easing the pressures of the payment plans. This would lead to more participation from buyers to invest with small monies and pay off gradually with easy payment plans.

Smart Cities: The government showing active interest in building 100 smart cities and increasing the FDI participation in the reality will give a positive boost to the real estate market. Hopefully with participation from local investors as well as NRI’s there would be a growth in these smart cities as well.

For the prudent investor it is advised to move from the wait and watch strategy to slowly start expanding portfolios to newer markets, especially the tier II cities and prime pilgrimage locations. One needs to move out of the comfort zone of familiar localities and start Identifying and investing in feasible properties for better returns.

5 Property management tips for 2016

Top 5 Property Investment Management Tips for 2016

There’s an age old saying “spend money to make money” and in our decade old experience, we can swear by it. While it is important to spend funds wisely, but to invest efficiently and avoid costly mistakes down the road, we bring to you Top 5 Property Investment Management Tips for 2016

Know the market dynamics, where you are investing

One of the most important decisions that you will ever make is that of investing in real estate, solely because of the capital growth that an investment of this nature offers. Besides the price at which you are acquiring a property, it is critical to also understand other dynamics that come into play like the area. It is wise to do as much research as possible, for example speak to locals, shopkeepers and know how the area is, what are the developmental plans, which part of the area is better than the other? A good trick to get inside information is to speak to competing agents about similar properties in the same location. While these are good methods, it is also advisable to seek professional services in these matter and also do independent research about property values, rents etc. which are easily available across so many portals now.

Understand the condition of the property and the facilities available

When making a decision to acquire a property, it is advisable to do a thorough check of the prospect property and look for defects like damaged wall, woodwork, cabling and leaking pipes etc. Identifying these will make a significant impact to the profits or put a dent in the cash flow.

It is also not prudent to buy a property which is in a perfect condition, because that would mean higher cash outflow. While you can get a higher value from a property in not so good condition by sprucing it up a bit, which will increase the capital growth as well as command a higher rental.

Make the property attractive

We all like good things around us. So if you are planning to put your investment property on rent,  and then the suggestion would be to keep the property in good condition. One thing that attracts good tenants is well kept properties. It is advisable to remember that when the time arises to sell, then the decisions are also usually made basis if the property was owner occupied vs tenant occupied, because buying property is an emotional purchase than a logical one.

Manage risks from a long term perspective

Unlike traditional methods of investing like shares, gold etc., investment in property is usually a long term investment. One should not invest for the sake of instant profits. The longer one can hold on to a property, the better it is. The idea is to strike a balance between financial stability and enjoying a good life and not become stagnant.

A key thing to remember is that you cannot sell your investment property instantaneously if the need arises. The market works on the dynamics of supply and demand and it may take months to sell a property, so you should be mentally and financially prepared.

Hire a professional Property Investment Management firm

Times have changed. We have come a long way from relying on the services of a local property dealer to hiring professional services. A managed services firm comes with unmatched years of experience working with different markets and types of properties. They are the ears and eyes of the market and help making logical decisions based on market reports, analytics and get the best value for your property. A property management firm can also take care of maintenance issues, finding the right tenant with checks, besides having expertise about legal issues in case a need arises.

“MyFollo” is an online real estate ecosystem bringing in change in the way online advisory and transactions are executed. Write to us at  to know how we can help you.

Property as a Wealth Management Tool

Given the uncertain times that we are in, one should always work towards being financially independent and be able to create wealth. In most of the investment opportunities one can start investing with small amountsand monitor the gains/loss on daily basis like that of shares, gold, FD’s etc. However one of the investment opportunities which are often overlooked is that of property. The main reason is that most people feel that oneneed to have access to good amount of money to start with but can’t put a value to the gains/loss instantly. However, this is not the case always.

Property investment is considered as long term investment option. So the wealth creation is generally fruitful when approached with the perspective that wealth accumulates steadily over time rather than by investing for a short term like in cases of shares. Property investment is a tangible investment. An investment in property has a physical presence that one can see, touch and control. The good part about property investment is that one can earn from its rent uniformly,even during the rise and fall of property market.  So, it is important to acquire the right asset at the right time,at the right location.

So, how does one identify the right asset, right location and the right time? Unlike buying shares where the value of a company is evident, real estate is more difficult in terms of pricing. There are chances that one ends up paying extra based on perception, or as it has been observed that if one is patient and is armed with the right knowledge, an investment in property also gives the opportunity to acquire an asset below its real market value. So, the key to success is research and right advice from professionals. The basic hygiene to keep in mind while investing in a property is to begin familiarizing with the locality, price range in that area etc. Once an idea about pricing of property in the identified locationis established, only then one can bargain to analyse the real worth of property. However while you may be in a Delhi, you may want to invest in an upcoming property in Bangalore, Hyderabad or elsewhere which is not in your area of influence. In times like this established professionals like MyFollo (hyperlink), can provide the real insight about which property to invest based on market intelligence, background of developers, location and legal aspects besides other factors. Also they are able to help choose a property keeping in mind the capital growth aspect. i.e. a property in certain area will have less growth rate as compared to other due to various reasons. One should keep the following in mind, while considering the property and its potential growth:

  • Infrastructure/amenities in the locality
  • Plan and timeline for the new infrastructure
  • The price trends in last few months
  • Potential rental income
  • Social security
  • Brand name associated or the goodwill of area
  • Loan facility on the asset
  • Age and condition of property and facilities


For calculating the total cost of the property one would have to consider other costslike increase in IDC (infrastructure development cost), registration cost, loan free, additional fees like maintenance,  parking and club fees etc. One should start investing in those projects which will give the possession in coming 2-5 years. In this way one wouldn’t have to give all the money upfront and also have sufficient time to plan of payment for the rest of the money. Also 2-5 years is a good time to invest the money in a property because in that period the value of the property will usually command a better price, because of infrastructure growth, better facilities, market places etc.

One thing to keep in mind, is that thebuying and selling cycle needs some time for the ‘property handover’. This leaves property investment option as mid-term to long term investment option.

Finally, one needs to be aware about the scope of liquidity in property investment. One just can’t sell property as easily as gold. However, rental income is also a good option which can help in taking care of EMIs or can be seen as a regular source of income. In short, one can earn regular money by using property as a wealth management tool, in form of rent but if the wish is to liquidate the investment, then consider it as long term investment option.

MyFollo” is an online real estate ecosystem bringing in change in the way online advisory and transactions are executed. Write to us at  to know how we can help you.