Not everything is easy
As in other investments, you must be realistic about returns and how they balance with funds invested. Real estate investments are not get-rich-schemes. They take time and effort, so be thoughtful and cautious when deciding to invest in real estate.
Do not leave anything to chance
Complete an analysis of the market and think about when you are going to lease or sell the property. This will let you know if you can find renters or buyers in the area and receive the offer you want for the property. It is better to do research early and appropriately price the property than be unrealistic and be burdened by a mortgage if you cannot lease or sell it.
Check with experts
Get advice from experts on each aspect of real estate investment. They can make projections and inform you according to different variables as to whether the investment is a good decision or not. If you ask the right people the right questions and complete the necessary research, you are more likely to have a good return on your investment and not be surprised by the investment process.
Below are some questions to consider before investing in real estate:
Is it possible to lease a property taken with a lease?
Many people who consider sub-leasing wonder if, as tenants, they can rent the property since they are not yet owners of the property.
According to reliable sources: Leasing is a financial system where the person is paying a monthly fee for housing, including the payment of capital and interest. To make use of the real estate lease, which can be applied for new or used housing, you must first cancel an ‘initial fee’ equivalent to 20-30% of the property’s value.
What happens if a written lease was not made?
Decades ago, business agreements were generally made verbally where a person’s word was respected, and only a handshake was required to authenticate the agreement. While times have changed, a landlord and a tenant can still make a verbal contract where the concept of good faith prevails. However, experts recommend having a lease agreement made in writing for probatory reasons. According to Law 820 of 2003, in article 3, “The lease for urban housing can be verbal or written. In either case, the parties must agree on at least the following points:
- Name and identification of the contractors.
- Identification of the property object of the contract.
- Identification of the part of the property that is leased, when applicable, and the areas and services shared with the other occupants of the property.
- Price and method of payment.
- List of services, things, or related and additional uses.
- Term of the duration of the contract.
Designation of the contracting party in charge of the payment of public services of the property object of the contract.”
When leasing real estate, and to avoid future complications, you initially make an inventory of the property accompanied by a film or photographic record. This inventory is proof of the state of property elements, such as the state of the walls, windows, doors, ceramics, and others. This document should be part of the lease to validate the condition of the property and must be signed by both parties, who can each keep a copy.
Should the landlord paint the property?
According to the Civil Code and Law 820 of 2003, the owner must maintain the property in optimal conditions for the tenant’s enjoyment, including the condition of the walls if they are damaged due to humidity, dilatations, rainwater, or deterioration.
Obligations of the tenant
According to the provisions of Law 820 of 2003, in article 90, the lessee is committed to taking care of the property and the things received in the lease. In cases of damage or deterioration, other than those arising from normal use or wear over time and attributable to misuse of the property, timely repairs or replacements may fall to the tenant to complete.
Obligations of the landlord
In the Civil Code, in chapter II in its article 1985, the obligation to keep the leased property in good condition consists in making, during the lease, all the necessary repairs, with the exception of the leases, which generally correspond to the lessee.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.