EstateDeskly’s Post

SERVICE CHARGE IN THE REAL ESTATE SECTOR >>> Service Charge is a fee charged by landlords to tenants in commercial properties to help in the upkeep of the property and the various equipment installed in the property. >>> It is a recovery charge for common services that are provided in properties for the benefit of all tenants and users of the property. They include but not limited to: Security, Cleaning, Insurance, Repairs and Maintenance, etc. Expenses such as: capex, marketing, interest on mortgage, profit mark-up, etc, are excluded from Service Charge calculations. >>> It is usually calculated as fixed fee per unit or square metres, and billed to tenants together with the rent charges (i.e. on quarterly or bi-annual basis). >>> It is a win-win arrangement where the landlord (through its property manager) arranges and provides for these services for the benefit of the tenants so that they can concentrate on their core business activities. The landlord in turns gets the property well-maintained and value appreciated over time. >>>Typically, the landlord pre-finances for the services and then bill the tenants for refunds. >>> It is usually estimated at the beginning of a period (usually the financial year of the landlord) and then reconciled at the end of the period. >>> The rule of thumb for Service Charge determination and accounting is TRANSPARENCY. >>> Service Charge Recovery Ratio is a key performance indicator for a property manager, and it’s calculated using the formular: (Service Charge billed/Actual Service Cost)*100%. #Service_to_fresh_accountants

𝗛𝗼𝘄 𝘁𝗼 𝗗𝗼 𝘁𝗵𝗲 𝗕𝗮𝘀𝗶𝗰𝘀 𝗕𝗿𝗶𝗹𝗹𝗶𝗮𝗻𝘁𝗹𝘆: 𝗞𝗲𝘆 𝗧𝗶𝗽𝘀 𝗳𝗼𝗿 𝗟𝗮𝗻𝗱𝗹𝗼𝗿𝗱𝘀 Have you ever wondered how the best landlords run their rental portfolios?The answer is simple: they do the basics brilliantly.They take a long-term view and prioritise doing these things well. 𝗧𝗲𝗻𝗮𝗻𝘁𝘀 Take care of your tenants, and they’ll take care of your property. Don’t drag your heels when a tenant raises an issue. 𝗠𝗮𝗶𝗻𝘁𝗲𝗻𝗮𝗻𝗰𝗲 Schedule routine maintenance jobs and look for potential problems when you conduct property inspections. 𝗖𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 Landlords must navigate a maze of red tape. The best educate themselves to ensure they’re compliant. 𝗘𝘅𝗽𝗲𝗿𝘁 𝘀𝘂𝗽𝗽𝗼𝗿𝘁 Working with a good, experienced letting agent eases the pressure on a landlord’s shoulders and makes a world of difference. 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗮𝗱𝘃𝗶𝗰𝗲 Top landlords get sound financial advice and work in a tax-efficient way. They regularly review their financial systems and structure. 𝗞𝗻𝗼𝘄 𝘀𝗼𝗺𝗲𝗼𝗻𝗲 𝘄𝗵𝗼 𝗰𝗼𝘂𝗹𝗱 𝗯𝗲𝗻𝗲𝗳𝗶𝘁 𝗳𝗿𝗼𝗺 𝗼𝘂𝗿 𝗺𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝘀𝗲𝗿𝘃𝗶𝗰𝗲𝘀?𝗣𝗹𝗲𝗮𝘀𝗲 𝘀𝗵𝗮𝗿𝗲 𝘁𝗵𝗶𝘀 𝘃𝗶𝗱𝗲𝗼 𝘄𝗶𝘁𝗵 𝘁𝗵𝗲𝗺.

𝐑𝐞𝐝 𝐅𝐥𝐚𝐠𝐬 𝐖𝐡𝐞𝐧 𝐒𝐜𝐫𝐞𝐞𝐧𝐢𝐧𝐠 𝐓𝐞𝐧𝐚𝐧𝐭𝐬 🚩🚩🚩 When screening potential tenants, it's crucial to watch out for certain red flags to protect your investment and ensure a smooth landlord-tenant relationship. 𝐇𝐞𝐫𝐞 𝐚𝐫𝐞 𝐬𝐨𝐦𝐞 𝐤𝐞𝐲 𝐰𝐚𝐫𝐧𝐢𝐧𝐠 𝐬𝐢𝐠𝐧𝐬: 1. Incomplete or Inaccurate Application: If a tenant leaves out important information or provides false details, it’s a red flag. 2. Poor Credit History: A low credit score or history of late payments might indicate financial instability. 3. Negative References: Bad reviews from previous landlords can signal potential issues. 4. Unstable Employment: Frequent job changes or inconsistent income can affect their ability to pay rent on time. 5. Unverifiable Income: If a tenant can't provide proof of income, they may struggle to afford rent. 6. Criminal Record: Depending on the nature of the offense, this could pose a risk to the safety of your property and other tenants. 7. History of Evictions: Multiple evictions are a major red flag, indicating possible issues with payment or behavior. 8. Unreasonable Demands or Requests: Tenants who make excessive demands or requests before moving in could become difficult to manage. 9. Short Rental History: Lack of rental history can make it hard to assess a tenant's reliability. 10. Hesitation to Provide Documentation: If a tenant is reluctant to provide necessary documents, it may indicate they're hiding something. Stay vigilant during the screening process to avoid potential problems down the road! 🏠 Sign up now for our 𝐅𝐑𝐄𝐄 𝐔𝐧𝐝𝐞𝐫𝐰𝐫𝐢𝐭𝐢𝐧𝐠 𝐂𝐨𝐮𝐫𝐬𝐞! Don't miss out—click the link and start your journey to real estate success today! 🔗 https://lnkd.in/gM-3-S-z Tenant screening tips, Rental property red flags, Bad tenant signs, Landlord tenant advice, Tenant application warnings, Rental property management, How to avoid bad tenants, Real estate investing tips, Tenant background checks, Property management strategies

Building trust by setting proper expectations is essential in real estate. Here’s how this approach benefits both agents and clients: Honesty Over Flattery: While it might be tempting for agents to tell clients what they want to hear, honesty is far more valuable. By providing accurate and realistic information, agents help clients make informed decisions. This honesty builds trust, as clients appreciate transparency and feel confident that their agent is looking out for their best interests. Setting Realistic Expectations: By clearly communicating what clients can expect in terms of market conditions, pricing, timelines, and potential challenges, agents help manage their clients' expectations. This reduces the likelihood of disappointment and frustration, as clients have a clear understanding of the process and potential outcomes. Building Long-Term Relationships: When agents focus on creating correct expectations rather than simply pleasing clients in the short term, they build stronger, long-term relationships. Satisfied clients are more likely to return for future transactions and refer others, knowing they can trust their agent to provide honest and reliable guidance. Navigating Challenges: Real estate transactions can be complex and unpredictable. By setting proper expectations, agents prepare clients for potential challenges and equip them with the knowledge to navigate these situations effectively. This proactive approach fosters trust and collaboration, ensuring that clients feel supported throughout the process. Trust and proper expectations go hand in hand. By prioritizing honesty and transparency, agents not only build trust but also empower their clients to make decisions with confidence, leading to successful and satisfying real estate transactions. Take a look at what my client had to say👇🏼

SERVICE CHARGE IN THE REAL ESTATE SECTOR >>> Service Charge is a fee charged by landlords to tenants in commercial properties to help in the upkeep of the property and the various equipment installed in the property.   >>> It is a recovery charge for common services that are provided in properties for the benefit of all tenants and users of the property. They include but not limited to: Security, Cleaning, Insurance, Repairs and Maintenance, etc. Expenses such as: capex, marketing, interest on mortgage, profit mark-up, etc, are excluded from Service Charge calculations.   >>> It is usually calculated as fixed fee per unit or square metres, and billed to tenants together with the rent charges (i.e. on quarterly or bi-annual basis).   >>> It is a win-win arrangement where the landlord (through its property manager) arranges and provides for these services for the benefit of the tenants so that they can concentrate on their core business activities. The landlord in turns gets the property well-maintained and value appreciated over time.   >>>Typically, the landlord pre-finances for the services and then bill the tenants for refunds.   >>> It is estimated at the beginning of a period (usually the financial year of the landlord) and then reconciled at the end of the period.   >>> The rule of thumb for Service Charge determination and accounting is TRANSPARENCY.   >>> Service Charge Recovery Ratio is a key performance indicator for a property manager, and it’s calculated using the formular: (Service Charge billed/Actual Service Cost)*100%. #Service_to_fresh_accountants)

In the realm of property leasing, effectively managing security deposits and tenant improvement allowances is paramount for landlords and tenants alike. By implementing efficient procedures, both parties can ensure a smooth transaction process and maintain a harmonious leasing relationship. Clear Documentation: Begin with comprehensive lease agreements that clearly outline the terms regarding security deposits and tenant improvement allowances. This documentation should detail the amount of the security deposit, conditions for its return, and specifications for any tenant improvement allowances. Transparent Communication: Maintain open communication channels between landlords and tenants regarding the handling of security deposits and tenant improvement allowances. This fosters trust and prevents misunderstandings. Accountability: Establish rigorous accounting practices to accurately track the allocation and usage of security deposits and tenant improvement allowances. This includes maintaining detailed records of transactions and expenditures related to property improvements. Timely Disbursement: Ensure prompt disbursement of security deposits to tenants upon lease termination, in accordance with the lease agreement and local regulations. Similarly, facilitate timely reimbursement or allocation of tenant improvement allowances to avoid delays in property enhancements. Compliance Adherence: Stay informed about relevant legal regulations governing security deposits and tenant improvement allowances to ensure compliance. This includes understanding permissible uses of security deposits and adhering to guidelines for managing tenant improvement funds. Efficient Utilization: Encourage tenants to utilize tenant improvement allowances efficiently and responsibly to enhance the property while adhering to agreed-upon guidelines. Provide guidance and support as needed to facilitate smooth execution of improvement projects. Resolution of Disputes: Establish procedures for resolving disputes related to security deposits and tenant improvement allowances amicably and efficiently. This may involve mediation or arbitration to reach mutually beneficial resolutions. RECAM Solutions offers top notch Lease abstraction and Lease administration services which includes Security deposit and TI allowance management in an efficient manner. Our Lease team, including middle and top management with SMEs (Subject Matter Experts) have 15+ years of in-depth experience into various aspects of Lease Abstraction process. Lets talk on how WE do it - the professional way you will rely on.. Reach us @ 72001 46160 / +1 205 827 7207  or mail us @ info@recamsolutions.com Or visit us @ https://lnkd.in/gzV-NR2R #Securitydeposit #maintenance #documents #lease #commercialrealestateservices #leaseabstraction # allowance #monetaryallowances #leaseagreement #contract #propertymanagement #leaseadministration #team

Landlords …….. these are some of the things that should be in an AST agreement. Ensure your documentation is up to date and has all the stipulated clauses within it as well as ensuring the tenant has been given all the correct paperwork at commwncement. I have been working with a landlord this week. I put in his application and he received an offer pretty quickly at an amazing % rate. He then contacted me again and it turns out that his ASTs don’t have all the required clauses in them. Therefore the lender said it needed to be changed. His first sentence in contacting me was “I am sure it is not necessary - just checking with you though”. My response was the absent clauses were extremely important and should have been included without question! He doesn’t self manage but leaves these matters to agents. This should not have happened in the first place, however it should be a very easy job of creating of an addendum, asking the tenant to sign with all parties retaining a copy! Job done👍 “The tenants aren’t trusting” was a later comment I received from him. He informed me that the tenants are refusing to sign an addendum or anything. A very upsetting state of affairs to say the least! Having worked with Landlords and tenants from a solicitor’s point of view and that of an estate manager - getting things right in the first place is paramount, however things can go wrong as we are only human, so the backup is having as good a relationship as possible with the tenants!! This is all very basic stuff ……. I did offer to draft the addendum for him, I offered to speak with the tenants for him …….. this is stuff I have done over and over again and felt confident I could make headway for him. He said the agents were trying to sort it🙈 I wait to hear how it all pans out for him🤞🤞So sad when my good work of securing an amazing rate in a timely fashion for him is jeopardised by the acts of others🤷♀️

SERVICE CHARGE IN THE REAL ESTATE SECTOR 1. Service Charge is a fee charged by landlords to tenants in commercial property to help in the upkeep of the property and the various equipment installed in the property; 2. It is a recovery charge for common services that are provided in property for the benefits of all tenants and users of the property. They include but not limited to: Security, Cleaning, Insurance, Repairs and Maintenance, etc. Expenses such as: Capex, Marketing, Interest on Mortgage, Profit Mark-up, etc, are excluded from Service Charge calculations; 3. It is usually calculated as fixed fee per unit or square metres, and billed to tenants together with the rent charges (i.e. on quarterly or bi-annual basis); 4. It is a win-win arrangement where the landlord (through its property manager) arranges and provides for these services for the benefit of the tenants so that they can concentrate on their core business activities. The landlord in turns gets the property well-maintained and value appreciated over time; 5. Typically, the landlord pre-finances for the services and then recover from the tenants through agreed periodic billings; 6. It is usually estimated at the beginning of a period (usually the financial year of the landlord) and then reconciled at the end of the period; 7. After the year-end reconciliation, the landlord either debit the tenants to pay for any shortage or credit them with any overage; 8. Finally, the rule of thumb for Service Charge determination and accounting is TRANSPARENCY.

UNDERSTANDING THE TERMS AND TERMINOLOGIES USED IN REAL ESTATE (PART 1) • CONTINGENCIES A Contingency in real estate means a clause in the agreement specifying an obligation only if the specified obligation is met, the contrast becomes legally binding. In contingencies, the counter offer and the offer is very important. Contingent means "dependent on or conditioned by something else". In real estate, it means that the buyer and seller have agreed to the terms of a purchase and sale agreement, but only if certain conditions are met. PURPOSE OF CONTINGENCY Contingencies are a safety net for buyers, allowing them to withdraw from the deal if unexpected issues arise. They protect all of the parties involved in a real estate contract. EXAMPLES OF CONTINGENCIES Contingencies can include: 👉The buyer securing financing 👉The home passing an inspection 👉The buyer selling their current home 👉The property having a clear title WHAT HAPPENS IF CONTINGENCIES AREN'T MET? If the contingencies aren't met, the buyer is free to walk away and the house would typically go back on the market. See you in the next class. 👩🏻🏫 SEEDUFY-WEALTH REAL ESTATE RC:7133794 OUR SERVICES INCLUDE: 👉 Land Buying 👉 House Buying 👉 Property Renting 👉 Property Sales 👉 Property Development 👉 Property Management 👉 Property Renovation 👉 Valuation (Know the worth of your property) CONTACT US TODAY!!! Visit our website to request for a consultation. 🌐 Https://SeedufyWealth.com 📩 Email: Seedufy@SeedufyWealth.com

ATO: Results from property management data matching The ATO has advised that its property management data matching protocol has recently been extended. It said the information gathered (including rental data from banks, landlord insurers, rental bond authorities and sharing economy providers) gives it insight to common investment property mistakes. In this regard, it said recent results from property data matching found the following common errors: - instead of reporting gross rental income and claiming expenses, net rent (after expenses) is reported and the same expenses are claimed a second time - properties are being omitted from returns - where they are owned by multiple stakeholders, only one owner reports the property – when both are required to report - not reporting the rental income received when purchasing an already tenanted property that the new owner intends on moving in to - capital works or depreciating assets being claimed as repairs and maintenance. The ATO said if your clients have forgotten to tell you about any rent received or made mistakes with claiming expenses, lodge an amendment as soon as possible. https://lnkd.in/gwssrren Virtual Audits www.virtualaudits.com.au