People have also been confused at the thought of buying car insurance and buying car insurance is not a very it not a very enjoyable thing. The reason being, buying an insurance policy calls for spending money and no individual likes to spend money. Whether we like it or not, it is mandatory to buy import car insurance.People who love cars and who do not mind spending extra in undertaking modifications to their cars really feel for their cars. Such people love to show off their cars and are bigheaded on owning such a prized possession. Thus people who own such modified cars would find it a little difficult to identify modified car insurance. Many of the insurers will not provide coverage for modifications undertaken by you. The car would be insured depending on the market value at that particular point of time, if you want to write off the car. You might have spent a fortune undertaking modifications to your car, to make it sparkle and stand out, but the insurers would turn a deaf ear and would not agree to pay for all the hardships undertaken by you. This would be a total loss if you have gone in for a bought import car insurance policy.The insurers are getting enlightened on the fact that the greater the modifications, the greater the individual would take care of the car and the individual would never apply for a claim. Thus, the company offers an insurance cover.Buying import car insurance policy for individuals opting for classic cars is definitely lower as compared to the latest and modern vehicles. Many insurers offer low premiums if your car is five years old. If you are a proud member of the club, you are also entitled to some discounts offered by these clubs. When buying Import Car insurance policy, check out whether your insurer is aware of the reason behind buying the car. There are many car lovers who buy cars just for fun, still some others love cars and love to show off their cars.When you intend buying import car-insurance policy for race cars, many insurers refrain from providing coverage to such cars. Many conventional insurers feel that there is high danger when it comes to this sport. Hence, it is advised that you do your research well and identify insurance companies which offer such a policy. It is advised that you check out the terms and conditions, the coverage offered the premium etc before settling for the insurance company. The reason why many insurers do not favor this policy is due to the insecurity associated with the sport. Reckless driving and aggression are forewords are pre requisites when it comes to racing and hence the insurers do not want to take this risk.Nevertheless, it is advised that prior to buying import car-insurance, it is better to differentiate and understand the type of car for which you intend buying import car insurance, so that you know what to expect.
What Investors Should Know About Property Management Reports
Each month your property manager will send you a monthly report. Each company has its own format, using different property management software and internal processes. However, you should receive the following:
A one-page summary that highlights key issues about the property, e.g., one tenant is 30 days behind on the rent.
Income & expense statement. This should be a short statement showing the base rent, Common Area Maintenance (CAM) charges for each tenant, rent and CAM payments received from each tenant. It also shows maintenance expenses and management fee; so you may quickly determine if each tenant has paid rent or not. This statement itemizes all of the income and expenses which may include:
Late fee: when the tenant pays late, he has to pay the rent plus the late fee. The late fee amount is normally stated in the lease. Normally, when the tenant pays late, the property manager has to do extra work to collect it. The amount of work depends on whether the tenant is too busy to mail the rent check, does not have the money or simply does not want to pay. The property manager will try to convince you that he is entitled to the late fees as an incentive to collect the rent. However, one can debate that it is a reward to the property for a lousy job. You as the investor suffer the damage when the tenant does not pay you on time so you should receive it.
Management fee: this fee is usually a percentage of the monthly income from the property that both you and the property manager agreed in the management contract. If you have a very stable property with the same income every month, then the management fee is the same. Otherwise, it varies from month to month.
Leasing fee: you typically see this when there is a new tenant or a renewed lease. This fee is normally around 6% of the base rent for the life of the lease. However, when the property manager is also the leasing agent you should ask for 4% fee.
Security/Fire Protection: your property may have fire & security monitoring services.
Electricity: this is most likely for parking or common area lighting as each unit normally has its own meter.
Water: this is for both drinking and irrigation.
Disposal: this is for garbage collection paid to the city.
HVAC repairs & maintenance: this is the maintenance costs for Heating, Ventilation and Air Conditioning. Usually, there is a service contract for HVAC whereby the maintenance company will inspect the HVAC twice a year: once before the winter and once before the summer. So, you may receive the service bills only twice a year.
Garbage dumping: sometimes people dispose their unused furniture, mattress on the property because there is no one around at night. The maintenance crew may have to clean up these things. Normally, you or the property manager will want a picture of the dumping to make sure that it is a legitimate bill.
Landscaping: this is often the biggest expense item. Typically, the landscaper signs a one year contract to maintain the landscaping on the property, such as mowing the lawn, trimming the trees/shrubs, and planting flowers. Thus, the monthly payment should be the same for the whole year.
Sweeping: the parking lot is usually swept daily, either late in the evening or before the tenants open for business. In the winter, there may be an expense for snow removal.
Steam cleaning: the concrete sidewalk is normally steam cleaned once a month. This is done by the same company that handles the sweeping and landscaping.
Roof maintenance: the roof of a commercial building is often flat and requires regular maintenance especially during the rainy season. The roofer may charge each time he is called to fix a roof leak. So, this is not something you see on the statement on a regular basis.
Supplies: there are various things on the property that have to be replaced periodically: light bulbs, trash bins, sprinklers, etc.
Bank charges: sometimes the tenants pay by check with non-sufficient funds. The bank will charge a fee each time the check is bounced.
Legal fees: you may see this if the property manager has to evict a tenant.
As a rule of thumb, you should not spend more than 30 minutes to review the management report of a retail property with 10 tenants. If you have to spend much more than that, then your property manager has sent you too much information or not organized the report properly.The property management company often proposes an annual maintenance budget for the property based on the prior year’s maintenance expenses. Each tenant is then billed a fixed monthly amount, proportional to the size of his unit. Thus, the base rent and CAM charges are the same each month; so, the tenants may expect to pay a consistent amount each month. Annually, between January and March, the property manager reconciles the accounting for the prior year. If the actual expenses exceeded the budget, the tenant will have to pay his share of the difference. In the event, the actual expenses were less than the budget; the tenant will be refunded or credited back the difference.Do’s and Don’ts
Use email for most of your correspondence. This will allow you to have records (date, time) of all issues sent and received between you and the property manager. You may want to set up the mail option such that it automatically will save all out-going mail. In addition, you may want to create an email folder for each property and keep all email messages related to that property in that folder. This allows you to find information quickly.
Ask the property manager to email to you the monthly reports. You should save all of the reports on your computer. Time and time again, you will need to look at a report from a previous month. The easier and faster you can access them, the more likely you will do it. Paper reports are much more time consuming to retrieve.
Have a copy of the rent roll handy with rent rate, lease start date, lease expiration, and CAM share portion. When you are asked to approve a new lease, check to make sure it does not expire on a year when you have several other leases expiring. This minimizes the risk of high vacancies on your property.
Cool India – Travel Tips
If you’ve picked India as your travel destination, here are some cool India travel tips that would make your journey enjoyable and as smooth as possible.As with any other travel to a foreign destination, do research beforehand. Purchase a travel guide that has the basics that will be useful throughout the duration of your trip. This includes the weather, the language, currency, food, means of transportation and more importantly the culture. This will prepare you for the trip and will help you make adjustments if you have to.The appropriate clothing when traveling to India would be to wear light pants. Shorts are to be avoided so you are safe to roam the cities and towns of the country. A safe tip when traveling anywhere is to always seek comfort before fashion. Wear comfortable shoes like sneakers or flipflops rather than heels or any other sandals that would kill your feet.There are a lot of beggars in India. When you encounter them, it’s your decision to give them rupees or not. If you must, then give it to kids just before hopping into the car or you might get mobbed. It is not a requirement to give them alms.The black market is also prevalent in India. A good tip is to avoid them at all costs. You won’t get good deals and might just end up going to the Indian jail.When dining out, choose places that are packed instead of the empty ones. It’s okay to wait for a table rather than go to an empty place because this means that the food that the place serves might not be that fresh. If you have a picky tummy, then choose safe food choices like veggies rather than red meat. Red meat can cause greater damage to your body especially if it’s spoiled and India doesn’t have the best hospitals.Be sure to carry around first-aid materials and medications. It’s safer to drink your own meds than to buy from Indian drug stores. Don’t order Western foods except if it’s from big, well-known fast foods. This is because not everyone orders these types of food, and chances are – they might not be as fresh.To be safe, drink soda instead of water. If you must drink water, opt for bottled mineral water and be sure they’re sealed. You can never know if water from a foreign place is potable unless your stomach starts acting up.Make hotel reservations ahead of time. This will eliminate the worries of having a place to stay and will also avoid rip-offs. A lot of people in India might take advantage especially if they see that you’re a tourist.Don’t wear valuables when exploring the city. This is also part of the cool India travel tips because there’s no point showing off those flashy accessories. They might get stolen and you don’t really need them.Have a local tour you around the place. This is for your safety and will ensure that you don’t get lost or charged double the price, say for a taxi or food.