Property Management Archives

14aug

The importance of good change maintenance within property management

In the active world of property management, it is necessary to focus on various aspects in order to maintain and increase the value of real estate. One of the often overlooked crucial aspects is mutation maintenance.

Mutation maintenance refers to the maintenance and renovation work that takes place between the departure of the former tenant and the move-in of the new tenant. In this article, we discuss why good mutation maintenance is critical within property management and how it contributes to optimizing property value and tenant satisfaction.

1. First impression and appeal

The saying "You never get a second chance to make a first impression" also applies to real estate. Properly performed mutation maintenance ensures that the property looks fresh, clean and attractive to potential tenants. This creates a positive first impression and increases the likelihood of a quick rental. An unkempt property can deter potential tenants and lead to longer vacancies.

2. Value preservation and value enhancement

Regular mutation maintenance helps preserve and increase property value. Minor repairs and improvements, such as painting walls, repairing damage and replacing worn floors, prevents small problems from escalating into larger and more costly issues. Consistently maintaining the property prevents decay and ensures that the property remains attractive to future tenants and/or sale.

3. Customer satisfaction and long-term relationships

A well-maintained home contributes to tenant satisfaction. When tenants notice when they move into a property that it is well maintained and all necessary repairs have been made, they feel valued and respected. This contributes to positive rental experiences and can lead to long-term tenant relationships. Satisfied tenants are more likely to treat the property with care and stay longer.

4. Long-term cost control

Although mutation maintenance requires initial investment, in the long run it leads to cost control. By proactively addressing minor issues, larger repairs and renovations are avoided. This not only reduces costs, but also reduces the inconvenience to tenants.

5. Legal obligations

Within property management, there are legal obligations regarding the condition of the property and the safety of tenants. Good mutation maintenance helps ensure that the property meets these legal requirements, preventing potential legal problems.

In short, changeover maintenance should not be underestimated within property management. It has a significant impact on property value and tenant satisfaction. By investing in regular maintenance and renovation, you as a real estate investor lay a solid foundation for a successful and sustainable real estate portfolio.

6. Sustainability

Mutation maintenance also plays a crucial role in promoting sustainability within living spaces. When a new resident moves in, it provides a valuable opportunity to make sustainable improvements. Investing in energy-efficient equipment, insulation and renewable energy sources during mutation maintenance makes the home more comfortable, modern and significantly reduces energy consumption.

This contributes to lower long-term energy costs for both the occupant and the owner.

7. Mutation Maintenance and City Estate

As City Estate, we understand the interests of property owners, which is why we have recently added mutation maintenance to our portfolio of services. Our guiding principle is to get the living space ready to rent again as quickly as possible and to ensure that the living space is in good condition when a new tenant moves in.

Benefits of performing mutation maintenance include:

Our advice is to do a quick check of the living space at every mutation. This can vary from light maintenance (just a basic check) to thorough maintenance. We have put together various packages from which you can choose based on your wishes and needs.

With our predetermined packages, you know exactly where you stand and pay one flat fee.

It is important to give care and attention to the quality of housing, after all, this lays the foundation for a positive rental experience for new tenants. By providing this extra service, we offer a win-win for both our clients and our tenants.

21sep

Real estate in box 3, how to keep it that way?

If you as a natural person own real estate you would like it to fall in Box 3, under asset management and not in Box 1 under income. Among other things, this has to do with how the tax authorities determine your assets as a real estate investor. In this blog you can read all about real estate investing and box 3.

Does my real estate fall into box 3?

For private investors who own real estate as natural persons, the basic rule is that this falls under Box 3. This must involve a normal situation. The tax authorities call this 'normal asset management'. The rent you receive is untaxed; on the other hand, you may not deduct items such as maintenance costs or interest.

What is not normal asset management?

The Internal Revenue Service lists several situations where there may be income from other income rather than normal asset management:

leasing out a property
For example, you converted a property to create separate apartments that you sold or are going to sell.
Performing at least 30% of major maintenance or other modifications to a leased property yourself
Using prior knowledge or other specific knowledge to gain advantage.

How can I keep my real estate in Box 3?

There is no clear guideline for when your investment property falls into Box 1 or Box 3. Incidentally replacing a light bulb can still be seen as normal asset management. But as soon as you yourself, as a real estate investor, start performing all activities involved in renting out real estate and remain actively involved in this, the tax authorities will quickly see this as profit from business or result from other activities. In that case, it will therefore be taxed in Box 1. By outsourcing the work to a property management company, you can be sure that your real estate portfolio will fall into box 3 and you will not face any surprises.

Property management by City Estate

Thanks to the unique and innovative approach of City Estate, you, as a real estate investor, are completely relieved throughout the rental process. City Estate ensures that the house is put on the market for the best possible rental price. The search for a suitable and reliable tenant, screening of candidate tenants and signing of the lease are activities that are handled by City Estate. Finally, City Estate will also take care of the daily property management. Monthly rent collections, accepting and handling repair requests and periodic inspections are matters taken up by City Estate. In short, as a real estate investor, you can enjoy a carefree return on your real estate. More information? Then contact us quickly!

08dec

Begeleid Wonen Nederland chooses City Estate as property manager

Begeleid Wonen Nederland is an umbrella organization of local housing initiatives with several locations in the Netherlands. In order to remain focused on its core tasks, Begeleid Wonen Nederland has chosen to outsource the property management of part of its portfolio to City Estate.

Because of the growing real estate portfolio of Begeleid Wonen Nederland and the ambitions they have for the coming years, the time had come for them to look for a professional real estate manager. With City Estate they have found a partner who can relieve them of all their worries regarding financial, administrative and technical property management.

Professional property management is crucial

For any type of property owner, good property management is vital. Drawing up legally solid rental agreements, timely collection of rents and possible service contributions, taking care of (complaints) maintenance and service and financial accounting of revenues and costs are among the activities within property management. A professional property manager such as City Estate is a specialist in this field and manages properties as if they were the owner.

Wouter Krusemann, Project Manager Begeleid Wonen Nederland: "We are pleased with this cooperation. With City Estate as the national property manager, we are completely relieved in this area. This gives us space to focus on our care-related core tasks."

Reinier Derksen, Founder City Estate: "We are very proud to add Begeleid Wonen Nederland to our portfolio. The cooperation is to everyone's satisfaction and the implementation and transition has been successful. We look forward to further cooperation in the coming years and the added value we can offer Begeleid Wonen Nederland and its residents."

About City Estate & Assisted Living Netherlands

City Estate focuses on leasing and managing mainly residential real estate. With its office in Utrecht, City Estate has managed to build up a national portfolio in a short period of time. Customers of City Estate are mainly private landlords, (institutional) investors and care parties.

Begeleid Wonen Nederland operates in the cities of Apeldoorn, Arnhem, Doetinchem, Eindhoven, Helmond and Tilburg. The locations in these cities are partly owned and partly rented. The aim of each location is to create a homely atmosphere. For this reason, Begeleid Wonen Nederland also deliberately chooses relatively compact locations so that all residents receive the attention and guidance they need.

16feb

Screening of tenants of enormous importance

Proper and accurate tenant screening is essential and of enormous importance. Both landlord and owner do not want to be saddled with a crook who ultimately does not pay the rent collections at all and runs off with the heavens. As a landlord, you also don't want the risk of, for example, a hemp grower who leaves his home severely damaged, damp and polluted once the harvest has taken place. Expert and extensive research into prospective tenants can prevent much misery in advance. Excesses occur in every industry and unfortunately cannot be completely ruled out. Some risk is part of making an investment with a return. However, City Estate is convinced that a good and careful preparation before the conclusion of the lease is very important.

Renting out homes is lucrative and can generate a substantial return. However, it is important to identify the additional risks beforehand. Below we have listed some of the risks you should take into account.

Tenant may neglect or damage property
Tenant can break the law by, for example, operating a hemp farm
Tenant may cause nuisance towards nearby / neighbors
Tenant may run into financial difficulties that result in rent not being paid (on time)

Tenant and landlord enter into a rental agreement with each other that in most cases is entered into for a longer term. It is nice to know that the other party can be trusted and will fulfill their obligations. Extensive screening of a candidate tenant in advance helps to gain this trust.

First contact with tenant

City Estate has contact with prospective tenants even before the actual lease is signed. As soon as a property comes up for rent, prospective tenants will come forward. In most cases, that will be a moment to start the first check of this candidate tenant. Based on the first and last name, information can be gathered through public sources on the Internet (e.g. Google, LinkedIn, Facebook or other social media). Discussing the requirements with prospective tenant by phone can also be useful to get acquainted briefly and form an image of a person.

Providing documents and data

When the first contact with the candidate tenant is positive, this person can be invited for a viewing round. This is also an important moment for City Estate to find out whether there is a match with the candidate tenant. If the candidate tenant is interested and we are positive, more data will have to be supplied. Data we want to receive are:

ID data
Income information (at least 3 recent pay stubs)
Landlord Statement
Contact information in case of emergencies
In case of a temporary lease: backup address

We can then start checking the data provided by the candidate tenant. City Estate cooperates with Huurcheck Nederland to carry out the screening as extensively as possible. Besides this cooperation, we also do a check ourselves. The employer is called, pay slips are checked and compared and it is important to check the cumulative. The former landlord is also called by means of the landlord declaration. These phone calls can reveal whether the 'paper reality' really corresponds to the actual reality.

Selection of tenant

In the end, if the supplied data is correct, the conditions are met and our partner Huurcheck Nederland gives a positive result, the candidate tenant will receive the rental agreement. As mentioned earlier, this screening will never give a 100% guarantee of no hassle. However, we have minimized the risk of hassle by means of an extensive screening process. Are you curious what City Estate can do for you? Are you currently dealing with a bad tenant and would you like to explore the possibilities? Then contact us without obligation!