Easy Ways to Manage Property for Beginners: A Guide from B

As time goes by, especially in 2024, the trend in the property industry continues to experience significant development, and in the future there is a possibility that this will continue to develop due to many factors, one of which is the 2024 election..

Here you will learn how to manage property from the basics, especially for those of you who still don't understand how to manage the property that you will own in the future. Before we start any deeper we will start by learning the basics

1. Basic Property Concepts

-Definition and Types of Property

- Residential Property

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Residential property is a property that is usually used as a residence, this property can usually be in the form of a house, apartment, condominium, town house. This property is divided into 3 size groups, Small, Medium and Large.

-Commercial Property

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Commercial property is property that is usually used for business or commercial purposes, which can generate profits for the company so it is said to be commercial property. Commercial properties usually take the form of offices, shopping centers, hotels, apartments, shophouses and supermarkets.

- Industrial Property

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Industrial property is property that is used for industrial purposes, starting from making products, storing products, and also shipping products. Industrial properties can be of various products and sizes. Some examples of industrial properties include: Manufacturing factories, luxury car dealer showrooms, medium to large warehouses, logistics and distribution centers.

-Property Investment and Its Benefits

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Investment in property has a very promising future, especially if it is located in a strategic location, and there are several advantages that can be a consideration for you investing in property

-Property Can Be Used as a Residential Rental Business

By owning property, you will be able to make the property your side business or even your main business. And if the property is in a strategic location and close to public facilities, then the property can be rented out or even used as a boarding house. boarding house.

-As Passive Income

You will be able to have passive income from this property industry because just by sitting at home you will get income from property rentals, dividends, interest, or even royalties from the property you own..

-Property Prices Continue to Increase

It is very rare for property prices to decrease, usually property prices will tend to increase, especially if the location of your property is in a strategic location. The profits we will get will also increase along with the increase in people's need for property.

-No Need to Monitor Prices Every Day

This investment is a little different from investing in other fields such as shares which we have to monitor every day, in the property sector you don't need to monitor the property you own.

2. Steps to Getting Started with Property Management

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-Preparing Capital and Financing Sources

To start investing in this property business, you need quite a lot of capital because you have a lot to do, starting from renovating the building, adapting it to your needs, and the costs incurred will be even greater if you invest in finished property. It's just that there are alternative payments that you can take to start investing in this field, you can try to take out a KPR (Home Ownership Credit).

-Property Market Research

Don't forget to research the property market you are interested in to see which property market we want to enter, so that it will be easier for us to develop in the property industry. There are several things that we have to do research on, research on the location of the property of interest, taking into account several factors such as regional development potential, accessibility and surrounding public facilities are the key in choosing a strategic location.

-Choosing the Right Property

After we have done the things above we can start to choose a property according to what we have been looking for before, and we need to check several things if we are interested in the property, because we must be able to choose a property that is suitable for us to manage, starting from building conditions, market prices, as well as legality and land certification.

3. Property Purchase Process and Legality

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-Required Documents

When you buy property, you have to know what documents you need to have when carrying out a property purchase transaction so that in the future you will .

Certificate of Ownership
Sale and Purchase Deed (AJB) Letter of agreement and receipt
IMB
PBB payment proof letter
Proof of bill payment

-The Importance of Help from a Notary or Property Agent

If you are still a beginner, you are advised to use a notary and also help from a property agent, this is because using the services of a notary is to ensure transactions are carried out according to existing laws, as well as considering using a property agent to help find the right property.

4. Managing Property Finances

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Managing property not only requires capital to purchase, but also operational costs such as paying property taxes, maintenance costs, insurance costs, and unexpected expenses. Apart from these costs, you also have to arrange your finances when you start renting out the property you own. Apart from that, you also have to provide costs for maintenance, starting from small repairs or even checking electricity and water installations.

5. Selecting Tenants and Drawing Up Rental Contracts

-Process for Selecting Tenants

To rent out property, you need to sort out the tenants who will rent. There are several basic provisions that might be a reference for you in choosing tenants. This aims to avoid problematic tenants. You can choose tenants based on

Financial capability / minimum income
Rental track record
Credit history
ability to provide security deposits

-Drawing up a Rental Contract

After getting a tenant, you can continue by making a rental contract. The rental contract must be made as detailed as possible, starting from the duration of the rental, responsibility for repairs, prohibitions on renovations without permission, as well as the obligation to pay taxes or utilities, and maybe there are others that you want to add.

6. Overcoming Challenges in Property Management

In the future, maybe you will face tenants who have problems ranging from being late in paying, damaging property, so you have to prepare strategies such as giving warnings, fines, or perhaps the worst is taking legal action. and you also have to provide emergency funds and contact repair services to deal with problems such as leaks or even damage to your property.

7. Memperluas Portofolio Properti

After you have succeeded in managing your first property well, and have made a profit, you can consider expanding your property portfolio. This could be like you buying a new property in a developing location or even a commercial property with a higher ROI potential, this aims to increase the property portfolio you own in order to get more profits. You can also invest in other properties such as apartments, landed houses or commercial properties to spread risk and increase long-term profits.