Hello, everybody welcome back to the property apprentice training. Um, you can see on the author of the property apprentice how to earn while you learn. And today we're going to talk about the next module how to manage your property once you have it. And when I come back, Adrian, thank you. Good to be here. Okay.

And everybody, as usual, to really get it into you. If you don't know them by heart yet. Of course you can see look on your paper but we got to do all property investing declarations first. So repeat after me. I am a successful property investor. I'm a successful property investor, I take action to get my goals.

I take action to get my goal laughs generating more and more passive income. I love generating More and more passive income, I make money when I buy. I make money when I buy, I switch off my emotions and make investment decisions. I switch off my emotions when making investment decisions, I overcome my fears. I overcome my fears, blessed and grateful that money comes to me easily. I'm blessed and grateful now that money comes to me easily.

I'm financially free. I'm financially free. Thank you. And I mean, now, these probably seem a lot easier to boldly lips than the very first time I did it, right. Yes. And I think everyone experienced that plus, after repeated so many times, you subconsciously, you know, believe what you're saying after a while.

And that's the whole purpose of frequency in repetition in doing this. So let's get into the content then. Now we talked about you know, strategies, how to finance your property, how to Find your property. And we talk about how to buy and sell it. Now, once you have it, this is a big concern a lot of investors have How can you manage it, especially if it's not in the country or area that you live in and you can't be you know, pop over and see what's happening there. So firstly, you got to decide whether you want to deal with tenants or not.

I know somebody who doesn't. And so this person will only do flip strategies basically. So buy, sell, buy, sell, probably trading. And for me, I want passive income. So I'm happy to the MIS tenants. So that's one decision.

There's no right or wrong, but you can decide and of course it can be both. You can have one sided sheet for one property that doesn't have a tenant and to flip it, and for the next one, you have a tenant. And when we do have, I will share some considerations what you need to take care of about tenants. If you have, you need to of course, find a good letting agent that can help you to find the right tenant first you got to find the right agent. And then the agent has to find the right tenant for you. And there's a couple of considerations in those points as well.

So let's talk about letting agents first. Two might have a different name in different countries letting basic means renting. So how to look at letting agents Now obviously, as always the thing one of the good strategies to have a good agent is as And anything else really recommendation, somebody who already uses agent for a period of time and had a good experience with them? If you have somebody in that area that you've chosen, then perfect? If not, of course you can find your own. And then it's important that you can vet that agent.

So couple of questions in doing so might be, you can ask them how many properties that manager will have one a boss fight, whether they're like a one man show or like a big agency, even if the big doesn't mean necessarily that good. They might have 500 properties to manage for one person. Then what do you think happens to yours? Exactly. is somewhere out in the ocean. So maybe if they have to management, you know, if they're 5080 properties for staff, on the books, it's okay.

But if If it's like a few hundred, then all orders might not be able to take care of fuels as well as they should be. Then you can sort of deployed a strategy I shared with you earlier, try to ask him that you want to rent out a property and how easily they could rent them and how much renting could fetch the opinion without actually having those five properties. Same as he spoke about earlier. When we told vertical with mine ads and all that online, the same, you can do this the agent as well obviously. Then asked them when they select tenants, what that one is quite important, like what kind of due diligence and what is the process They use and how to set termination procedure in case there is a problem is the tenant to get him out again? So ask them, you know, what are you doing plus often I do a great job here.

And they do spend a lot of time and matching tenants, you know, the background, their salary slip when they really make as much as they claim they do. The credit history and all that perfect. And some of them, I didn't just take on anybody who was willing to rent because they get a commission. Likewise asked him how to conduct viewings or if you ever conducted healing yourself. This is also maybe a couple of things I can share here with you. Don't turn up to me During together with your prospect you should be there beforehand to make sure everything's in good order places reasonably neat and you know people make emotional decisions in the vt Shin to switch off emotions when you make decisions I mean out of all the tenants did not do that they like the place they rented it or like it they don't so how to make it more likeable for them right so we move items that have to personnel that it might not like then make it look nice and one of my powerful thing is is sent so add some room spray or brew coffee or you know so when it coming Oh wow yes placement scored.

All these functions obviously subconsciously, but influence Is my soul and how well they can explain the property to the tenant to some agents they go, this is the living room and this is the kitchen and this is a bedroom, I can see it myself no they can do a bit better job than that in the selling the features and benefits and advantages of your of your place. Also, it has a cap on repairs. The tenant has freed himself that varies from country to country in terms of regulation. But you know, if the light bulb is broken, they don't have to trouble the landlord was that a tenant can do that kind of thing in sales. I saw and then if you have a good impression authorization you can find out and if not you phenomena. So a couple of tips for letting or for selling.

If you have land a property give it a name. Obviously not in a corner unit. But if the landlord house you know, the Adrian residences, sounds 10 times better than one to squeeze misread. Just put a sticker or make some nice sign and put it outside of the gate. That's it. It doesn't have to be officially registered in the in the town map or whatever.

If it has a name that's more powerful. Obviously, yeah. So So for a standard house, just any name. Yeah. Just make up a name that describes the house. Any name I mean, FEMA names a popular Sometimes we call it Angular, or Patrick so I don't know.

Whatever you'd like. Or it could be something functional. That is feisty area. We just look at property names right? Just to get any portal, see what kind of names they give to their properties and let's give it a name. Whatever.

I don't think there's any particular rule what name to get for. It's just you know, big sign outside they're saying I haven't wanted on earth impresses people. And obviously you would want to maintain it well to get a good price clean tidy, quite obvious some make it look too personal like for you your own taste. Your personal items, I mean, but not to, not to furniture had sent already mentioned And remove turn offs like for example, in a garden or do you call this small you know, these gnomes kind of things? I don't know what's the right name for it, you know what I mean? Some people like these small little statues of but some people are totally turned off by that.

So key becomes neutral. Okay. Now also important tenants selection well the agent does it on your behalf or you do it yourself. You have to do your due diligence. One of the most critical items in that respect is whether they even legally in the country. In Singapore, for example, the law is extremely strict.

Context and in many other countries as well, you know what happens to a property owner who purposely harvests illegal immigrants. No, take away the property flouts, they can take away a property. So it's not only a fine or the kind of thing so really make sure they have the work permit or stay permit or whatever permit enables them to stay in the country, but don't do any tourist or limit rent or that kind of thing. So that's an absolute must. then the rest is important. But you know, I mean, really, some questions you cannot shoot us.

Some of them they might not always, we might not always be able to verify all of it but obviously asking the reason for changing residents. If they move to a new city, or cigar shop Nailed perfect might have to change residents six times in the last six months because they're kicked out six times. You might not want that tenant in your property what is their kind of job situation salary, whether they have, you know, credit obligations or bad credit, you know, we can't pay off the loans and probably can't pay your rent either. If that's important to you, whether they have pets or not, if allow pets fine, or if you don't make sure they don't have any, like glasses smoking was obviously so hard to get out of the walls and curtains and all that's the next tenant. And you're supposed to be have no bias for law against anybody.

Whether they're male or female, old young, fresh, shiny, new Buddha Buddhist For no local, you should treat everybody the same. What obviously if you do it yourself, you got to talk to them. If the agent does it for you, you can totally trust them if they go or you cannot, what I sometimes like to do is just do them the initial selection out of the hundred. They might have 20 viewings and out to 20 year olds, even the top two that they would recommend and then I have a quick chat is them both and then sometimes out of coffee you get some you know, bad feeling about somebody might take or some language feeling about somebody and then you can make a fine selection yourself if you choose to. Or you can also leave it to the agent to choose to that's really, I would say your personal preference.

If the agent done it, then obviously ask him on these due diligence items. What was the outcome for that candidate? Yeah if we're talking to them after the agent has shortlisted okay to ask some of these same questions to get that feel for them, so why not? Yeah. can always pretend he didn't tell you. Oh, you forgot to what else is fine.

Cool. I mean, some questions you cannot ask though is intimidating questions or, you know, questions that are too personal like, Are you gay? That one I cannot ask. Yeah, that's selling. What do we know bedroom is tell one thing. Yeah, they don't discriminate against anyone.

Then once you've selected your tenants, you need to make a tenancy. agreement that obviously has to comply with the local law in your country. In most countries, in theory, verbal agreements are acceptable. However, I would strongly recommend to have something in writing. If you use nations, they will have agreements. If you don't, in most countries, if you go to a stationery shop, they will sell standard rental agreements, or you download from Google or whatever you choose, but make sure you're put in writing.

In the UK, they have something called assured Shorthold tenancy. That's like a six months rolling contract. So after six months, every six months, you renew it. And then you can keep them for one a day. If you like, and if you don't like and after six months, you know what, so that's In some other countries like Singapore, it's usually one or two years here in Germany usually indefinitely it's, it's like a job, you know, when you don't want any more than give notice to quit. So, it depends on the country in terms of the duration, but in any case, make sure you comply with law and you have something in writing.

What you would want to avoid is something called protected tenancy properties. That means in the title deed, so I ended the check there easily when you do your due diligence and buying. This would be a burden in the title deed. Protected means that the current sitting tenant is protected, that you cannot kick him out or whatever is whittingdale. That could be somebody you know who has left his property to his wife. And till she dies, she only has to pay 1000 a month's rent, and she's only 47 years old.

You don't want that. Otherwise, just get a proper agreement and then you should be fine. in UK it's two months notice for landlords to cancel the agreement. One for a tenant in most countries is same point as one month or two months. Okay, it's a little bit as symmetric. And you obviously would want to take a security deposit and also have to comply with local law.

What to do with it. In Singapore, for example, you can just keep it and The end of the tenancy return it in the UK, you have to register it with the government. The three different government agencies will do that. Because there's been a lot of disputes in the past. That, you know, landlords said, Oh, I never got this was it from a tenant and all that. So it's a bit more regulated there.

So just know local law and just comply with it. It's, it's fairly straightforward. Just need to know what it is. If you're using a and leasing agent, they would typically take care of all this right? Yes, absolutely. Then, okay.

That's the easiest form of managing your property, social housing. That's strategy number tool that we discussed some time back. Because there is no management, and you don't have to do anything. That's right, because your tenancy Council, they decide who they put in, you don't even know for ever saying it doesn't matter. You don't have voice, you don't have to manage anything, you don't have to worry about rent coming in, you're gonna have to pay a management fee to anybody. So that's even though you might get slightly lower rent, but for all these advantages, which one uses to at least I mean, it's definitely worth it.

So that is nothing to manage until that contract expires. That's the easiest of them all. A bit more work is obviously HMO. If you chose in this strategies, you will have multiple tenants which has individual tenancies Which differing expiry dates and all that so it's a bit more time intensive might have said obviously so you also have to manage the regulations that that your safety gas and fire safety guess certificates are current the fire exit signs are their stuff we already discussed the spreadsheet early on. You want to score this high cash flow less with a white spot always see people walking. Yes.

Yep. So when you have an HMO person who's renting is your into one of the bedrooms. Is that Chris your tenant right? Right. So we have a seven bedroom house and a seven different to dinner, I do this in different rental agreements and seven different dates you might have one might have started in January, the next one February, the next one in March. That one's a bit more work.

But if you don't want to do it, we will come to that later. Of course, you can also use a management agent to do it on your behalf and then it's totally hands off for you. So what are your obligations as a landlord and as a tenant in the next slide, so the landlord you have to provide the shelter, probably you're responsible for the safety and security. So it means you're locking the door and components that attend is at least able to be secure, but he leaves the door open or not. It's obviously his business by but at least you know what I mean by Daniel policy, responsible 40 major repairs. minor repairs simply can be done by the tenant when I said light bulb breaks, or do I handle the falls off and fix himself.

But if the boilers approach, you have to replace it. You have to make sure you comply with regulations. You have to take out the insurance, pay attacks, and obviously, administer his deposit. So that's your obligation as a landlord. The tenant in return has to obviously pay the rent as to place the security deposit with you as to pay the utilities bill. Although an HMO must say you're usually the landlord, the doula it costs you know if you're seven individual tenants you cannot have paid in one seventh of the electricity bill every once then just prices into your rent.

And then you paint. But if it's a ptl, obviously they have to pay it then they have to maintain your property in the original condition, less reasonable wear and tear over the years a little bit, it's okay. But if you trash it, you can take the deposit the parents cleaning then obviously is a vocation not to use your property legally, gambling, dance or weapon dealings or whatever. Drax all this obviously, they can do. Also not to cause excessive noise or loose ends to neighbors. They need to notify you if the property needs repair major repairs so that you can take care of it.

And they need to grant you access. Now. Take no debt. with advanced notice. So if you want to see your property, you can inform the tenant minimum 24 hours or more in advance and say, hey, I want to come and visit you around, can I come this time? If you just show up, or even worse, you have a key and go in without his consent.

You are committing a criminal offense called trespassing. Don't do that. I want to see you still not done in two years of prison. Nicely cannot go into your own property without informing the tenant. As to the tenant, the tenant has to agree. Provided you've given them 24 hours notice.

Yeah, and he might say no, sorry. I mean tomorrow. I'm not around. Adrian Can you do day after tomorrow? You have to be reasonable and that's fine. But you cannot just go in and demands Hey, um, you know, let me You can say no.

Make sense. Then a couple of words maintenance, I'd make sure you keep it all in good shape. Some of these might be mandatory according to law or building regulations here and there. So just be aware of those, whatever might be applicable in your particular case for your property. What I like to do is actually, I usually look to the extent possibly remotely close relationship with my dentists. And then I ask them to do it themselves.

If there's something that we maintained or something breaks and even if I have to pay for it, I asked them to organize the contractor to fix it and to schedule And then I just pay to build rather than me trying to find a contractor and trying to coordinate I'll surely come on Thursday 9am on Friday 2pm and then back and forth, I'm in the middle doesn't make sense. So, if you have a management company, obviously David do it for you. But if you manage the time yourself, then you can try to you know, ask him to do it himself or herself. To the extent possible. Yep, declaration yet don't just tip really don't use too many different colors to paint your property. If one room blue, next green, the next red next day, a lot of people don't like that.

Okay, the name already mentioned. So now how to manage your properties. There's three ways to So I'll discuss those issue. And there's no right or wrong. It's just personal preference. Number one is obviously you can do it yourself.

And by managing probably I mean, after the tenant is in fights, the letting agent has found, the tenant tenant has moved in. What's next? This is what it's all about. So number one, you can do yourself. advantage of status, your tolling controller, you don't have to pay anybody doesn't cost anything. disadvantage, it might be time intensive.

For my students. It's not really very time intensive if you chose a good tenant in the previous step, but a little bit here and there. Otherwise, you have to be they have the landlord trap. That means, you know, if you're not working and only managing properties, but you have to spend 60 hours a week to do that, then it's worse than a job. Yeah. So to avoid that, or if you're happy to pay somebody to do it, obviously, you can get a property management agency or professional agency will do that, who does that?

To do it on your behalf, they will collect the rent, they will do the maintenance, they will talk for 10 and they will do everything used to have nothing. So, it can save a lot of time, but obviously, they will want some money from you. So, charges for that range between age of 15 1512 to 15 years HMO vacation always was always obviously the maybe 10 tenants to manage a does not know, by to let flat. So, that goes off your rent, but if you price it in into the calculations and syllable works, and you're happy to pay this a 10% then by all means, let them do it and you're totally hands off. If perhaps one fine day, your property portfolio is going so big that these eight or 10% a month off, and is a significant amount that you paid him a few months.

Obviously you can negotiate maybe a lower percentage, if he'll be customer of theirs. The other possibility might be your employee, somebody your own own staff that basically does full time management of your property portfolio. If that's cheaper than paying, you know, for 50 or 60 or 70 properties times 8% a month, then you can get the old staff to do that. One works for you, which is obviously not only cheaper then but also your full control what he does or doesn't do and how to run it just makes you If they ended your money, they don't run away with it. Okay, so there's no right or wrong. You choose, and you can mix and match.

Also one property you do yourself next one agency, right. It's really totally up to you. What would you like to do? And especially for OCS, I mean, property management agency might make sense for a lot of people. Because it's simply beliefs, your time and responsibility to do it. So overseas investment is not something you need to be afraid of.

It's this really should eliminate any concern often. By having a property management agency do it for you. Yeah. Okay, great. Any questions? Now, that's all pretty clear.

I mean, it's, it's all just variations on buy to let and depending on if you have a more complicated rental arrangement, then the fees will go up or the complexity number of tenants you deal with will go up. But it's probably a lot of common sense in relationship management and selecting the right people and making sure that you have communication openness. Once again, probably messy is a team sport. And in this case, you will just simply add a management agency to your team. Okay, so that was the managing module. Thank you very much Adrian and everybody and also You can make sure he's always filling the blanks in your workbook.

This one is here on this page, right? Or we can do property management, fill in the blanks do we all work. And thank you very much. See you next module. Thanks so much.