A Crash Course on Property Management for First-Timers

A Crash Course on Property Management for First-Timers

When you purchase your first rental property, there are some critical factors that you need to be assessed. As Redfin explains, you need to determine how much you can charge for rent by taking features such as location, home size, and recent updates into consideration. You also need to determine how much investment you’re willing to put toward the property and whether it’s sufficient enough to receive a return. Also, don’t forget to consider what tenants may be looking for and who will be managing the property before making any final purchases. 

Get the Proper Insurance Coverage 

Every form of business opens you up to potential lawsuits and other legal actions; property management is no exception to this rule. Before rent out your first property, invest in the proper insurance policies. Professional liability insurance, also known as errors and omissions, is a great starting point. This coverage will help to protect your business, properties, and subcontractors from specific claims involving negligence other related incidences. Talk with an insurance agent to see which policy is best for you. 

Choose Your Tenants Wisely 

Finding tenants for a property is much more complicated than selling a product or service. As the owner and manager of the property, you’ll be entrusting renters with your investment and assets. You’ll have some insurance coverage and legal protection, but you don’t want to solely rely on them. Instead, take some time to carefully find tenants who are trustworthy, financially stable, and clear of any criminal history. It’s common for property managers to have a screening process for weeding out unreliable tenants. You should always look for ways to protect your property and your investment. 

Find a Property That Is Easy to Manage 

Not every rental property will pose the same challenge for you as a property manager. There are some that will be much more difficult to manage due to their age, size, and location. When choosing your first rental property, you’ll want to find something that is fairly easy to manage. This way, you’ll have enough time to focus on the business side of your role as the property manager. Finding something that is small, relatively new, and located near your own home is a great place to start. 

Keep Accurate Records 

Even though you’re not selling a service or good, you’ll still end up doing a lot of paperwork as a property manager. In order to keep everything organized, you need to maintain accurate records. This includes your legal paperwork, transaction history, permits, licenses, and other important information. Whether you need to update a legal document or confirm last month’s payment for a tenant, having detailed records will make it easy to run your company successfully. 

Investing in your first rental property is an equally exciting and stressful endeavor. As a beginner, don’t let the size and complexity of the real estate market shatter your goals. With the right strategies and some hard work, you’ll be on your way to creating a financially stable future through real estate. 

Why are the Corporate Giants Opting Out of the New Tax Cut-Off Scheme of Modi 2.0?

Why are the Corporate Giants Opting Out of the New Tax Cut-Off Scheme of Modi

Story till Now

To stir up the economy, the Union Finance Minister, Nirmala Sitharaman has announced heavy tax cut off wherein the effective tax rate of around 35% has been reduced to mere 25%. On top of that, the tax rate for new domestic firms and new manufacturing units that set up in India, starting in October and commence production before the end of March, 2023 will be taxed at an effective rate of just 17%.  

This announcement of the Central Government has been received with great enthusiasm by the market as the Sensex hiked up by 1900 on Friday and 1300 points on Monday. This decision, although would cause a revenue loss of around Rs. 1.5 lakh crore to the Union government, is being considered a much needed support by the government to support the falling economy.

Will the benefits of tax reduction be transferred to Consumer?

 This move has been praised by all the business related community and has attracted investors. The tax-reduction, normally, results in lower costs and thereby higher demand for goods or services and ultimately resulting in the treatment of ailing demand. However, for now, it is rational to assume that the Businesses will not be transferring the benefits to the customers. The benefits from such tax reductions might be used to recover the losses that the organizations have faced because of the stagnant demand. 

Recently, nearly every sector was affected by the poor demands and caused huge losses to the Indian market, resulting in loss of jobs and huge unemployment. So, we assume that the benefits would be definitely but not immediately transferred to the ultimate consumers, i.e. once the companies are have made good all the losses incurred by them in the past few months. 

How is the corporate industry reacting for the same?

As stated above, this has provided benefits to the organizations by reduced tax slab and even higher market evaluation for most of the Companies. Although, now the corporate have the option of opting lower tax regime but the condition of foregoing other exemptions has made an economic dilemma in the minds of corporate. Therefore, we are seeing two kinds of actions by the corporate.

Some corporate are opting in the new tax rates and availing the benefits that new policies provide. However, on the other, few corporate such as Godrej and Dabur are opting out of the new scheme. 

Why are some corporates opting out of the new scheme? 

These actions by the giants follow their decisions to claim exemptions provided in the various sections of Income Tax Act, 1961 which would lapse if these corporate giants opt for the new scheme. As far as we can say, the companies who have a lot of exemptions to claim might skip the new schemes as of now and once these exemption benefits have been satisfied, they would opt in the new schemes.

We would like to conclude that companies which are willing to reap the benefits from various exemption-related provisions of the Income Tax Act tax cut off are opting out of the new schemes, rest are highly satisfied by the ‘new gift’ of the Finance Minister.

Why the Indian Market Rose up By 1900 Points?

Why the Indian Market Rose up By 1900 Point

On Friday, the Indian government launched an all out attack on the drooping Indian economy to counter the economic slowdown. Surprisingly, it was welcomed by the investors at a great level where the Sensex rose by over 1900 points and Nifty closed at 11,254. 

The main attraction of the announcement made by the Finance Minister was the tremendous decrease in the tax slab of corporate tax rate. In order to boost up the businesses, there was a significant  cut in the corporate tax rates, the effective tax rate (inclusive of surcharges) for domestic corporate, have been reduced from 34.94% to 25.17%. 

 Also, the tax rate for new domestic firms and new manufacturing units that set up in India, starting in October and commence production before the end of March, 2023 will be taxed at an effective rate of just 17%. 

The above decision of the government is being called as the most visible factor leading to the drastic change in the market, where Sensex and Nifty observed their biggest one-day rise since 2009.

What does this offer to the economy?

The decision clearly offers an incentive to the Indian markets to invest more in the corporate. As, most of advisors are suggesting, the present tax cut has made the country more competitive on a global level as far as corporate taxes were ever concerned. 

It must be noted that whenever such cuts are made there is obviously a loss of revenue for the state. However, such a loss is generally recovered if such an incentive is actually able to stir up the market. There are many benefits, this might bring such as more investment, employment, etc.

 Would it be actually helpful?

Whether or not this change of corporate actually stimulates the current economic slowdown, would be seen in time, but we would like to state what the experts are advise. On one hand, people are saying that this reduction is just a concession rather an actual help. As the real problem is the reduction in demand. Others say that the structural reforms such as GST has caused a loss in the demand of goods and employment. So, it is possible that such a reduction might actually help the current situation.

Fill the form for further inquiry

This will close in 0 seconds