Category Archive Real estate tips

How to rent an apartment in a smart way: best tips

How to rent an apartment in a smart way: best tips

Apartment rent is a common case but still it raises many questions. Do I need a contract? What will happen if I leave an apartment abruptly without warning the owner? Can I get a deposit back if the owner does not want to give it back?

Insist on the contract

Imagine that you have found a wonderful option: an inexpensive comfortable apartment with a convenient location and benevolent mistress. You know that you need to make a contract, but she tells you: “We don’t need any contract! Just pay money – and that’s it.” Perhaps it will be so – and maybe one day her son will return from the business trip and force you to leave. If you are lucky, in such a situation you will be allowed to collect things and leave quietly, and if not – you can stumble upon the replaced locks, and retrieve things with the help of police, which also will need a proof that they are yours (this is by no means obvious – you don’t have the grounds to store things in this apartment). If you have paid in advance, you can never see this money again. If the person you want to rent an apartment from does not want to sign a lease, it’s better to look for another housing. Otherwise, there is a risk that you will have to say goodbye to your favorite things.

Think about the end of the contract

If you do not want the landlords to come and check on you every day, make sure that the contract says how often the landlord should check the condition of the apartment – for example, once a month.

It is also useful to indicate in the document, for how long before the end of its validity, the landlord must notify you whether he wants to renew the contract and on what conditions. At the same time, it is better to indicate how far in advance he should warn you that you must leave if he wants to sell an apartment.

Keep in mind that the apartment rental contract is not automatically renewed. After the lease expires, it must be re-signed, if you reach an agreement with the lessee. If you forget to take care of the extension of the contract, you risk facing the closed doors and losing some of your things.

Do not forget about the act of acceptance-transfer

The contract must be accompanied by the act of receiving and transferring the apartment, which must also be signed in duplicate. If such an act doesn`t exist and it is not described in detail what things are in it and how they look, it can become a problem. A week later, the owners can forget that the dishwasher has not been working for a year, and the bath had a leakage, and they will blame you for these damages. The court will be on their side, and you will have to pay for it.

Let’s sum up: you should have a copy of the certificate of the ownership, the permission of another owner or owners, if necessary, two copies of the contract and two copies of the acceptance-transfer certificate. Now you can sign the documents, give one copy to the owners, take the keys and say goodbye, specifying when they will come the next time. After signing the contract, your task is not to violate its terms. As an additional precaution, the documents should be always with you – for example, to prove that you have them, if the owner will suddenly change the locks.

 

Investment attractiveness of different types of real estate in 2018

Investment attractiveness of different types of real estate in 2018

Commercial real estate objects pay off faster than houses and apartments, and provide more revenue. But it is difficult to manage such assets as well. We found out what kind of real estate ownership is more profitable today – expert tips are here to help you!

Houses, hotels, shops

Houses, hotels, and shops bring guaranteed income. Positive dynamics of the real estate market, which quite easily survived the crisis and its consequences, suggests that apartments and houses are very profitable projects for investment.

Buy-to-let business

An interesting proposition for investment in business is buy-to-let commercial and office real estate. This is a ready-made business: premises are already leased, contracts with major companies-tenants are signed, rental rates and lending rates for the future buyer are set. Banks are willing to lend to foreigners, who invest in business.

Commercial areas

Renting commercial areas can bring profit that is higher in 2-3 times, than residential – even after paying the costs and tax charges. The profit from the apartments is about five percent per year.

In the time of crisis commercial areas bring their owners less than 7-8% per year. The profitability of retail space is 9%, warehouses – approximately 10%. Payback period is about 10 years. And apartment pays off approximately 18 years.

The greatest importance when selecting office premises lies in location and accessibility. The price will depend on these factors.

Warehouses

Possession of warehouses brings the greatest benefit- this is a very stable business. But it is specific as well.  Private persons buy warehouse real estate quite rare. And it is more complicated to manage such locations: the number of potential tenants for such premises is smaller than for offices and retail.

Street retail space

The most stable and predictable kind of commercial premises is a street retail space. The profitability of such premises is at the level of 9-11%. And most profitable investments are those made in leased areas up to 300 squares meters.

Commercial real estate overtakes houses and apartments, and the more expensive it is, the more money it brings. Not everyone can afford to purchase premises for renting it to jewelry shop on the main street of a big city. The second conclusion — if there is a great desire to become “a commercial investor”, you should pay attention to new apartments.