Terms to know when RENTING!!!

The whole system of paying rent needs to change in Sri Lanka. Firstly, the terms or rather definitions need to be learnt and understood properly and not assumed. The issue with assuming terms and conditions is that it would lead to an eventual cancellation of the deal, which is not what we want.

Property owners need to be educated and that is also one of the prime purposes of setting up this BLOG!

So what are the definitions which come into play? Let's take a look.

1. Advance

This is something that needs to be removed from the system but will take a long time to come into effect. Many property owners do not know the difference between this and the deposit (see below). Advance is the amount you pay at the point of signing the agreement. Of course, you can also pay a refundable advance (small amount) just to lock the property so the property owner will not show it to anyone else but that rarely happens in rentals. 

2. Deposit

This is the security refundable deposit and again a very tricky one. There are property owners who have varied terms and conditions, some expect you to pay a security refundable deposit of 6 months' (which is stupid and insane), some expect you to pay 3 months and some expect you to pay 1 month which is acceptable. 

There is no need to pay a high security refundable deposit if the property owner can visit once in two months and get the tenant to fix whatever he or she has broken or damaged. The security refundable deposit could be taken as the rent instead -why should you pay so much? I don't see a point in locking so much money and what if it's not returned. At times, clients forget to collect the retainer. It's a win-win situation for both if the owner has the right attitude towards the client. 01 month is acceptable and best to stick to it. 

3. Tax

This could mean a million things. Get your lawyers involved. Get the good lawyers in. You are paying them and they need to be impressive in what they do. It's sad to see some lawyers doing the realtor's job under the table. I am fine if it's done properly but doing the job under the table just to make a buck will only contribute towards the corruption of the profession. There is property tax, stamp duty, government tax and what not.

4. Legal Fees

This is the fee paid to the lawyer for drawing the agreement and looking after the interest of both parties and hence, it's always split.

The system requires a great deal of change and this will begin only when someone who knows the way shows the way to everyone in order to conclude a successful deal.

Rental Transactions - What is the paperwork procedure? How does it work?

This is one of the foremost requisites that needs to be checked / questioned / asked and inquired about when discussing and negotiating with the property owner.

Renting a property- Sri Lankan Context

A few years back, a rule was brought that if you are a non-sri lankan passport holder and you are renting out property, be it a house, land or apartment, you are liable to pay 15% tax of the total period you plan on staying as stated in the lease agreement. However, the good news is that this is being reviewed and chances are that this rule would be null and void in a few months, if not, it's a sorry scene for all the foreigners.

SO what's the solution if the rule remains so?

Where there is a will, there is always a way and I don't know whether this was something that was the brainchild of a lawyer or a property owner. In most cases, we have noticed that a mutual agreement is done and the papers are not sent for registration which in this instance, we are made to understand that neither party can seek recourse in court and that the money credited to the property owner's account is naturally unofficial as the transaction is not registered in order to avert the tax payment. 

Of course, the above is also done to save 1% stamp duty which is generally split into two. So, even if the rule is changed, there will be some naughty property owners lagging around just to save a minute fee. Lawyers on the other hand need to be well versed in explaining the consequences of such acts and keeping the clients well informed. I noticed that there are lawyers who are not aware of tax laws when it comes to foreigners and they are doing lease agreements and so on which is a shame. 

If you are renting any property, it's always best to go with an agent / agency, it gives you that extra bit of security and reliability. Once you have liked the place, ask the relevant agent what the next steps are how to sign up, do not confirm on the spot. Let your agent handle that for you and the best ones in town actually know how to seal the deal without too much hassle. 

Clauses in the agreement

This can be very tricky if you are looking to have it your way, some of the clauses in the agreement are inserted purely as security layers and have absolutely zero probability of happening for real. This applies to both the client and the property owner and the best advice I can give you is - DO NOT BANK ON THE CLAUSES IN THE AGREEMENT BUT INSTEAD BUILD THAT TRUST AND RELATIONSHIP OF RESPECT AND INTEGRITY where both the client and the property owner feel that they should be honourable and not lose their integrity. 

Die hard businessmen may laugh their hearts out what is mentioned above as it's always advisable to have everything clearly stated in black and white and hence what I have just mentioned above might be contradicting but let me tell you why - As far as I know, according to the Sri Lankan law, as a property owner, you cannot kick your tenant out!!! That is the bottom line. From a tenant's perspective, yes - you can stay for as long as you like and create as many problems as you like. This does make the property owners slightly vulnerable and hence it does not matter how the zero-probability clauses span out which is why I stress on the importance of the lines in capital letters above - please read them again.  

The paperwork process / procedure

This is quite simple, let me give it a shot in showing it baby steps:

Step 01 - A confirmation e-mail from the client or the client's agent/ agency. 

Step 02 - Vetting the draft of the agreement 

Step 03- Finalizing the final draft of the agreement if the deal is still on from both sides. (Yes, the deal can fall through when in step 02. I have observed this many times)

Step 04 - Arranging to meet up and sign the agreements.

Standard duration period of the above is generally between 4 - 7 working days while some deals happen on the day and some in a day or two as well. 

IMPORTANT TIPS

While the above steps take place, it's important for someone to take the leadership and to ensure that the deal happens. Often, it's the property owner and that's the best person to get the job done. The effective property owner will agree that this is the way to go.

Punctuality plays a big role, try to make it 15 minutes before the actual time and be on time. It makes a world of a difference and the impression it creates goes a long way.

Good luck and happy renting!!!

Please write to info@mrtgiant.com if you have any deals on the table or require any of our services. *Terms & Conditions Apply* 

10 THINGS TO KNOW ABOUT SECURITY IF YOU ARE AN EXPAT IN SRI LANKA

Frequently asked questions with regard to security in apartments.

Q: What are the most preferred locations by expats?
A: Colombo 02, 03, 04, 05, 07 & Rajagiriya


Q:Are security personnel trained?
A: In Luxury & Super Luxury Apartments - Yes
In Basic & Normal Apartments - Not Really


Q: Do all apartments have a camera in the lift?
A: No


Q:Is the security really super tight in apartments?
A: In Luxury & Super Luxury Apartments - Yes
In Basic & Normal Apartments - Not Really


Q: How trustworthy are maids and security personnel in Colombo?
A: Not one bit.


Q: Have there been any serious situations in apartment complexes in Colombo?
A: Yes


Q: It is safe to live in a house or an apartment?
A: It's safe to live in an apartment but a house with security is equally good.


Q: Are the security personnel nice to the residents?
A: Yes, they are especially if you are white skinned.


Q: Is Colombo generally considered to be safe to live in?
A: Of Course.


Q: How is the attitude of Sri Lankans towards expats/ foreigners?
A: Friendly. Sri Lankans are friendly people that like to win hearts. Treat them with respect and dignity and they will not fail reciprocating the same.

KEEP FAMILY AND CLOSE FRIENDS AWAY FROM YOUR REAL ESTATE AFFAIRS

This is one of the most important elements of any person's real estate portfolio. You cannot afford to get family and friends involved in real estate affairs unless you are extremely certain that their involvement is only going to boost the interest of all parties concerned and thereby get the job done.

Why should you keep family and friends away?

The answer is simple, because of who they are. Family politics is a subject that is known to the whole world but for some strange reason it's always buried under the carpet and people turn a blind towards it. Yes, there are times when you need their support and there are instances and situations where the above is null and void but for the most part of it, it's best advised that you do not get them involved.

It's okay to obtain advice and keep them informed etc. Sometimes you might also like to have them represent you as their POA (Power of Attorney) but ensure that you give them something back in return either in the form of some payment or some kind of compliment to mark a goodwill gesture and keep that family or friendship bond held high with respect and dignity. There is no such thing as a free lunch. So don't get caught to that trap.

Sometimes we are too nice

Yes, if you agree with the above and have been hurt by a number of people. You need to go on the professional lines with your real estate affairs. Have all dealings in black and white, nothing agreed or confirmed upon verbally. Everything should be based on a contract either via email or print. This gives both parties equal binding and the level seriousness is felt, understood and realized.

When you are too nice to people, in most cases, they take advantage of your humble quality and sometimes wriggle out of the problem they put you into without you noticing that it was them that created the whole fiasco. Our experts have seen and experiences how family interventions eat up a deal and drive the whole deal to a totally diverse direction.

Under the table matters are also done by such people. Always keep a distance with family and friends when it comes to business. It's best to keep them at arms length but yeah, there are certain exceptions and sometimes it's best to let be around you just so you know someone has your back and will punch if you make the wrong move.

Agent Culture in Colombo

How do Agents operate in Colombo? Are they cultured? Are they good, honest and trustworthy?

The above questions are some of the questions that come to your mind when you think of real estate agents and brokers that operate in Colombo and how you can hire the best. There are certain types of Agents which operate in Colombo. The main two categories are the full time professionals and the part time amateurs. The professionals are the ones that are advisable hiring but if they are not in a position to help you, then you are left with no choice but to seek refuge under the umbrella of the amateurs who are sometimes luckier than the pros. 

The Sri Lankan mindset when it comes to agents and brokers also need to change. It's sad to see some people who are fully occupied in their profession (not real estate) demand 50% from the agents and brokers just to mediate when the owner is abroad. Sometimes, these people are family and friends. Owners should never let family and 

friends get involved in their real estate affairs. There are very few trustworthy agents and you must do your homework before you figure out who or which agent is going to represent you, after all, agents and brokers always represent someone, it is either you or the client they bring in. 

Sri Lanka is going through a phase where there are too many agents in town and majority of them are there in the market purely to make a buck. There is animosity and hostility among agents too and it makes serious competition come to life. Unfortunately there is no government regulation or system of governance in the country where an agent is trained and polished before they brought into the market. Sri Lanka's only real estate agency that trains agents in Mr. T. There is so much that agents can learn just to maximise their earning potential and be better professionals in the market. 

It's not easy to become an agent and then to be a famous broker in Sri Lanka. People look at you condescending and they think you are a couple of notches below them. Some even judge you and put you in a very different circle. The truth is that the best agents in the country are sometimes treated like poop and that is when the industry experience either the exit of a good agent or a paradigm shift in the life of that particular agent. 

Agent / Agency Involvement in Rental / Sale transaction!!! Super Important!!

It is always advisable to keep the Agent / Agency aware and keep them bound to the deal purely because it is because of them that the deal is taking place and they are responsible if something goes wrong terribly. You may be the landlord / Potential Tenant / Buyer or Seller etc. It does not matter as long as you keep the Agent / Agency involved and properly updated, you have done your bit. The professionals love to get involved and learn more and more. It's amateurs who only want the money. 

Not only does it help to have the agent or agency involved but you could also use them as witnesses in the same transaction and that truly helps a great deal.  They are able to understand matters more clearly and advise if something goes wrong or is not done in the manner it should be done. There are very few people who have a not-so-great impression about agents in Sri Lanka, this mentality is surely going to change especially with the professional agents and agencies that are in town. There is a big difference in the experience you receive from the amateurs and the pros. 

Do not single out the agents or write them off, there is a good chance that you would come across a poor agent who gives you a hard time, try to work with as many as you can. You would know which agent fits into your matter with little difficulty. When it comes to sharing information with agent / agencies, it's best to have most of it in writing and thereby keep things professional. Some Agents hate to put matters in black and white while the pros simply love that aspect of communication. 

Have a pleasant experience with the agent/ agency you choose to work with. 

Tuk Tuk Drivers and their ways! Must read if you are using Tuk Tuks in Colombo

Using tuk tuks / Auto / three wheelers can be a challenge if you are an Expat / Tourist or even a local for that matter. Nowadays, with the growing number of foreigners coming over to Sri Lanka, the tuk tuk drivers have become very cunning and rude. Needless to say, there is always a bunch of honest and hard working tuk tuk drivers who are innocent in every sense of the word. 

Tuk Tuks without a meter

Do NOT get into these tuk tuks. Nope. I have learnt it the hard way and have often been ripped and disappointed with tuk tuks without a meter. Why would someone have a tuk tuk without a meter when 9 out of 10 tuk tuks have meters installed? The point it that they want to make more money and fool the foolish. 

Tuk Tuks with a meter (Buy hey! It's not working) 

Another no-go. This is more of a cheating technique where the board says that it has a meter and when you get in, the meter is just there but it's not on and if you don't bother asking, it will remain without use as it is and if you do ask him to turn it on, you would get a reply like 'It's not working' or he would quote the amount and say 'Even if you take the meter, it's the same thing' 

The catch between normal meter tuk tuks and company tuk tuks

The normal ones that you flick off the road charge around 40 rupees for a km while the company ones charge less (the range varies from 30 Rupees to 35 Rupees). It's best to call a company three wheeler if you are looking at a long distance. With short distances, the road ones will do. 

Night Hours 

Generally, the pricing differs at night and there is around 7 rupees increased for the first kilometer and then around 5 rupees more for every kilometer, understandably because it's at night. 

ALWAYS PAY IN RUPEES!!! 

This is one of the most important messages that I want to put across to all the users of tuk tuks. Make it a point to pay in rupees. Even if you have dollars and if they demand in dollars, simply tell them you don't have any dollars and pay in rupees. If you pay in dollars, chances are that you are going to get ripped off big time. 

Good luck with the Tuk Tuk experience in Colombo!

How to find out the market rate of a certain property / apartment etc

This is a very interesting aspect of property / real estate when it comes to pricing and costing. How can one get it right? As an owner you are put into this strange of whether, 'Am I asking too much or am I asking too little?' Below is a list of things you could do to figure out / investigate on market values:

1. Ask around and pretend to be a buyer of such a property

2. Call up Real Estate Agencies and inquire (Pay them for the service if you can)

3. Check out adverts of similar properties in the area on the newspapers and the internet. The internet is dominating the property market in many countries and you can easily gather facts and figures from the leading websites and thereby make your own report.

4. Talk to a bank and get them to do a property valuation, sometimes you may find real estate agencies that provide this service as well. Ask them how it works. (Pay and get it done if you think it's worth the job)

5. Use social media to get feedback from others and that way you would understand if there were any recent transactions in that area and gain a broader understanding of what's going on in the market.

Always remember that if you are getting a third person to find out about this, you got to pay them well otherwise the information is not going to be that accurate. There is no such thing as a free lunch. 

The prices can vary within days, weeks and months and it's important to have an idea on when to sell and when not to. 

You also have the option of testing the property in the market, although you may not want to sell it,you can still advertise and check the pulse of the market and see if there is less or more interest depending on the prices you advertise the property at. 

There is a rule when it comes to property prices, it either stays the same or it increases, property prices do not drop unless you have overpriced it or you are desperately in need of cash. Real Estate is the perfect investment for the future.

How safe is it to rent houses and apartments for expats in Colombo?

One of the prime concerns for anyone when it comes having a roof on top of their heads is this aspect of security. Regardless of the condition of the property and its luxury orientation, the first and the prime requisite or criterion for any renter or potential buyer would be the security and safety pertaining to that particular property. 

We, at Mr. T had a rather strange experience with a client when we took the client to the apartment on a rather high floor and to our surprise the client simply said that this is not safe. When asked why, the client said that rogues/thieves could jump over and enter into the apartment as it had large windows designed purely for light penetration and ventilation purposes Now then, this is an apartment on a rather high floor in Colombo 07 and the whole building is under camera surveillance and there are two security guards at the entrance with a control room that monitors movements seen through all the cameras. 

Imagine that. 'This is not safe' Oh well!!! 

This is partly to do with the mentality of the client that this is not a safe country and that there are drug addicts and robbers roaming freely in literally all parts of Colombo. Fortunately, that isn't the case. Sri Lanka has never been this safe and pretty especially the city of Colombo. Yes, the common notion of problems, accidents and crimes is always on the back of your mind wherever there is human life making its presence but that does not mean that Colombo should be singled out as a "NOT SAFE" area. In fact, Colombo is probably the most super-safe area in the country. 

So the answer to the above question would be:

Yes, it's generally safe to rent / buy a house or apartment in Colombo. We see more and more expats / foreigners asking for houses. A few years back, it used to be only apartments but now foreigners / expats do like to rent a place in and around the city, sometimes outside of it as well. There is just a bit of risk involved when buying a house as opposed to the apartment and that is the security factor, you can simply lock an apartment and go wherever you like but you cannot do the same with a house or if you have too many enemies, an apartment might be an easier option. 

Think smart when investing in property and yeah, it's safe to to buy/ rent houses and apartments in Colombo. Enjoy your time while you are here! What is meant to happen will eventually happen!

Good luck and keep smiling! :)

Pay Your Real Estate Broker / Agent on Time!

When it comes to payment matters, the professionals make it a point to pay on time. It's very important that these payments are made either on time or well before time as that strengthens the bond between you and the Real Estate Broker / Agent. 

What it also does is that you become a priority customer to them and winning their attention is never a challenge if you are able to pay up as soon as you can. The Sri Lankan property owners are gently gathering more respect toward the professional brokers/agents and this is a good sign. 

You real estate broker / agent is not just a person like anybody else, he/she is you property partner, your property advocate and can be very useful to you in real estate matters. After the police and the secret intelligence of any country, it's the real estate folks that know what exactly is going on. 

If you are thinking of ditching a professional broker / agent after you have used their services, be careful as this goes a long way, in a world where everything is available in the space of a few clicks, a lot can happen and can be done to tarnish and blacklist you if you mess around. 

Sometimes, the evil curse of money takes a toll on your head and you might think, 'Why should I let them make money from my property?' but the fact of the matter is that they have brought you the money in the form of a client and it is your duty to ensure that they too benefit just like you do. 

It must be said that there are property owners and clients in Sri Lanka who treat their Property Brokers/ Agents like family and when it comes to payments, they make it on time and sometimes offer a complimentary gift or an extra amount (tip) as a token of appreciation. 

'No one should say this to me - When I walk on the road, that man owes me money!' Were the words of a property owner who ensured that he left no debt and that is exactly the mentality of a perfect property owner. After all, the fee is a very small amount.

'Before the sweat on the forehead of the worker dries, you must pay him', were the words of a wise man when it came to honouring a business deal. Make your payments on time and make them count. The relationship you build with people is more important than any of the materialistic pleasures this world has to offer. Good luck!!!

SIGN IT OR YOU WILL PAY FOR IT!

It is super important that any agreement you reach with the client, broker or agent that you have the matters discussed / spoken  in writing. Sri Lanka is a developing nation and while this transition is taking place, the job of the conventional broker who works purely based on trust (verbal agreement) is slowly diminishing. From the honest broker's perspective, it is also quite a risky task to deal based on a verbal agreement. So it's actually a win-win for both parties to have things in written form. 

There are many local and international agencies that are hitting the Sri Lankan market because they see potential to provide their services and thereby make good money. It is important to have all what is said and discussed in writing. The same applies when it comes to the confirmation of a certain property, be it a sale or rental, it does not matter - every piece of information has to be in writing and that is what matters at the end of the day. 

It must also be said that many property owners are very nice people and I have personally come across many of them who have been taken for a ride and have lost a substantial amount of money. The whole purpose of writing this here is to educate and create awareness among all the owners / brokers / agents etc. that it's extremely important to have everything you discuss in writing. 

Do not buy the verbal bull shit, not only will you have to pay more but it would also impact your mentality and impression when it comes to certain people and their backgrounds, nationality and most importantly their profession. It's a dog eat dog world and there just as many good and bad people in the market, everyone wants to make a fast buck. It will not cost you to play it a little safe and get everything in black and white. Please do be extremely mindful about it. Sign it and be risk free.

Good Luck!

Determining the rent of your apartment. Get it right in the 1st time!

One of the most baffling situations any apartment owner gets caught to is the rental price of their apartment.
How do you figure out what a good rate is? What are pros and cons? Am you asking too much or too little?

Many a time, I have noticed that apartment owners are either asking for sky high rates or do not have an idea on how much to ask as the rent for their apartment. On a few occasions, I have come across a bunch of owners who are happy to give it out for a nominal rent purely because they want someone reliable to look after their place. The motive of such owners is not to make money or profits but to ensure that the house is maintained well and that the people living in it are honourable and dignified.

So what is the best way to set about pricing your place?

One of the first things you must do is to inspect your own apartment very carefully and fix all the flaws. This is only if the apartment is used and requires your attention.

There is always a range in which apartments could be rented out especially if they are in complexes and this range should be identified, if you are not living there or do not know how to do this, get hold of another owner in the same complex or simply get hold of an experienced realtor who might be able to shed some light on the numbers.

Once you know the minimum and maximum ranges, you should wisely arrive at what you think is a reasonable figure (preferable somewhere in the middle) and be flexible when it comes to negotiating with clients. Any sane person, once a few lines are exchanged with the potential tenant, understands the calibre of the client and is in a good position to gauge whether the client is worthy of the apartment or not.

This is the simplest way to approach this whole scenario. Do not go by the fancy numbers told to you by various people. There is always the market price and then there is your price which has to somewhere around the market price.

An initiative that requires your support - CSR respected by Mr. T - The Real Estate Giant

Mr. T - The Real Estate Giant will be launching its first major CSR initiative 'Knowledge For All' which is an array of activities carried out in various underprivileged schools. The plan is to spread knowledge especially in the English medium and mainly through reading which will involve the setting up of English Libraries in these schools and the continual supervision to ensure that the children are benefiting and using the facility provided in the best possible manner.

The first step is to hold discussions with such schools in order to gauge their pulse on the matter and determine how much of support they can gather from their end. The provision of a reading room / library with shelves has to be the least they could do to support this initiative. The management of Mister T plans to set up at least 100 libraries inside the 3 years commencing from 2016.The project is expected to invite the support of every Sri Lankan that can contribute in this worthy clause and be a part of by helping out in whatever way possible. 

To be part of this initiative and/or to know more about this, please send an email to info.mistert@gmail.com

Mr. T - The Real Estate Giant

Mr. T is one of the fastest growing real estate firms in Sri Lanka with a colossal clientele. With more than sixty thousand followers on facebook and a client base which encompasses many of Sri Lanka’s richest individuals, it is certainly thriving in the market as an impact player when it comes to cracking deals. The key areas that Mr. T focuses on are building trust and providing unexpected levels of professionalism using both technology and innovation in order to cater to as many clients as possible. In this day and age, where technology is dominating the world, Mr. T has come forward to provide opportunities to all those who are looking for various properties either to buy or rent, be it permanent or temporary and one of the most fascinating aspect of their service is the practical knowledge that they possess when it comes to advising the client on the much needed issues, problems and challenges that are faced by many of the clients in terms of any property related matter. At Mr. T, it’s of utmost importance to be honest, transparent and trustworthy in order to do the real estate broker’s business in this part of the world especially when the number of amateurs is more than the number of professionals. 

The history of Mr. T is quite inspiring although the company underwent formal registration a couple of years ago and is currently run by its directors, it must be said that this family business was in existence since the 1980’s when there were only two ways of attracting clients in this trade, one being predominantly through adverts on the newspapers and the other by word of mouth. Today, the company has grown to such an extent that it has also expanded into other businesses such as corporate training, event solutions and corporate branding and not only is it venturing into other sectors but is also on the lookout for various other business opportunities in order to make its mark in the business world. ‘When we thought of expanding and going big, the main goal was to professionalize this brokering business and I am happy to state that by taking the approach we have taken and having come a long way since the business was run by my parents, we have to a great degree succeeded in bringing this business to a stage where people respect it and consider it more like a profession as opposed to a job anyone could do.’ Shared one of the directors of the company.

Apartments - Demand and Supply - The DEAL!!!

Colombo is undergoing a huge change in its skyline and it's clear that a major contributor of this is the number of apartment buildings that are coming up. 

There is an enormous demand for apartments and commercial real estate in the city of Colombo and one might feel that there are too many apartment projects that are currently underway. As of now, there are approximately 3000 apartment units in town and this figure is expected to be above 6000 by 2018. 

Are there enough buyers in the market?
Will people like the idea of living in an apartment?
Would there be an over supply of apartments?

The above questions are lurking on the minds of many people such as developers, investors, potential buyers and of course realtors. So what's the deal? What's really happening in Colombo with so much of construction etc?

The fact of the matter is that there is money in the country and there are buyers as well. The most distinguishing aspect would be the luxury type. Colombo still lacks in Super Luxury apartments and that is precisely where the void is. When considering the kind of projects that are underway, it's quite clear that most of it is super luxury which caters to the lifestyle of the high net-worth individuals.   

We must also not forget that apartments are bought not just to live, they are bought as investments by individuals as well as companies and there is a market there - a fairly big market. On top of that, there is an expat market as well. Colombo is on its way to become a leading city in the world and with so many expats and other international brands settling in, there will be the interest of the foreigners who would buy for various reasons. The current number of apartment units is certainly not enough. 

Why is the current number of units not enough?

For the simple reason that there is nothing much to choose in terms of size and uniqueness. When considering the number of super luxury apartments, clearly there is a shortage. Yes, there are luxury apartments but there are not many super luxury apartments. I wouldn't want to classify them here as I may sound biased if I may do so. One has to physically visit the complexes and then decide if it is anywhere close to luxury or super luxury. 

It is also quite clear that there is a high demand of normal/basic apartments which are priced on or below the 20 million range and locals are very keen to invest in them. The biggest risk one takes when it comes to settling for a basic or normal apartment is the maintenance of the building/complex. Buying an apartment is one but maintaining the common areas is a challenge to all the residents. 

The bottom line however with apartments - demand and supply is that now is not the best time to determine if there is an over supply or not, probably once we reach 2018, we would know if there is an over supply or whether the demand is still there as most of the projects are not complete and majority of the completed projects have done well in their sales. 

Until then, fingers and toes crossed!!! 

What's Up Sri Lankan Property Owners?

There is a growing concern in the real estate market with respect to this notion of 'Foreigners Only'  when it comes to renting out their properties, most of the Sri Lankan owners are always comfortable to let expats and foreigners occupy their properties and this is going to hit the local market very hard.  It is sad to note that these Sri Lankan Property Owners are leaving behind a huge segment of locals who can sometimes outshine the standards of the expat or foreign lifestyle.  This mentality has to  change and probably will but it has to happen soon.

Perhaps it has to be brought to light that all foreigners do not qualify to win a property be it commercial or residential properties.  When it comes to apartments especially,  it was noted that the owner is super curious to know the nationality mainly because  certain  nationalities have lost it in Colombo and word has spread to be cautious with such  clients.  Hence,  the importance of getting hold of a reliable agency / broker is highlighted.  There are agencies in Colombo that are extremely careful  of the  clients they deal with. 

Having said that,  it must also be remembered that one must not single out a nationality just like that as that would sound very rude. Not all are bad and not all are good either.  There has to be a certain degree of screening involved and a little bit of background check king to be done  before you proceed  forward.  At times,  when it's difficult to extract information,  use the agent who brought the client to obtain more information about the  client so he understands that his job is not over.  Many unprofessional agents just go missing after they get their money and this   culture has to change.

Sri Lankan Property Owners need to understand that  it's more to screen the client as opposed to eliminating the locals from framework. Just imagine a Sri Lankan living abroad as a foreigner, would he get the kind of treatment that is given to foreigners here? That kind of respect? Nope.  It's a big no.  So where will our Sri Lankan clients go then?  This topic needs to be considered very seriously and  there has to be a win-win situation. 

How to pick a Good Realtor in Colombo

Picking a good realtor who will get the job done for you is very important. Whether you are an expat or a local. It's best that you do your homework before approaching any of the Agents/Agencies in Colombo.

According to my research, there are around 400 agents in Colombo operating in various styles. Some specialize in a certain area such as commercial properties, apartments, houses, lands and estates and some deal in luxury properties which cover some of the above. 

Colombo being a city full of opportunities, there is a good chance that you would come across the following types of individuals who claim to be Agents or Brokers (Most of them do not know the difference between an agent and a broker). 

a. Full Time Employees of Other Businesses/Companies/Organizations

This is a category of Agents that enjoy a one off bonus in most cases when someone from their company is looking for accommodation. This happens even in certain embassies. Everyone loves to have a piece of the cake. 

b. Housewives and Ladies who bank on their luck

This is a very famous category in Colombo purely because of their special skill of extensive communication. There are a number of housewives that do not use their real name but go with something starting with 'Mrs' and ending with their husband's second name. Very tricky indeed. 

c. Tuk Tuk Drivers

This is another prominent category of agents that only thrive to make a fast buck. These agents are not one bit professional but they have very good ears. It's not advisable to be on phone calls when you are inside the tuk tuk as they are on the lookout to hunt down a big fish and can be a pain if you fall into their trap. 

d. The Professionals

Sadly, there is a shortage of professionals in the country and many do not know whom to turn. From this category, there are certain Agencies - Yes, there are real estate agencies in Colombo that provide a professional service and it's most advised to promote this category. They have a website, the present a proper business card, they dress well, they have a pleasant personality and what's more, they are registered either as Agencies or have the individual license. You can find them easily if you Google their name. 

Considering the amount of agents in the market, it's best to stick with professionals as the element of risk is minimal and the service is assured. It's also advisable to load the agent with questions just to ensure that the professional agent you are talking to knows his/her stuff. There are times when the professional agents do not have what you need and it can frustrate you but that's how it is. Sri Lanka needs a professional association for agents which is fueled with the true spirit of networking.  

Are you an Expat in Colombo? Not sure whether to rent a house or apartment?

One of the most common dilemmas among the Colombo expat community is whether to rent out an apartment or a house? Even Sri Lankans who have lived abroad have this question on what's safer.

However, the fact of the matter is that Colombo has changed. It has changed so much that a Sri Lankan who left this country 10 years back would be awe-struck to come back and notice the massive change in terms of development. 

I will give my two cents on renting an apartment and/or house. I am sure you would be in a much better position to figure what works for you.

Renting out an apartment

This is considered to be the safer option for many reasons but then again it will depend on your taste. There are plenty of apartments in town and depending on which location you prefer and what luxury type, there is a good chance of finding some options. With apartments, the following factors kick in:

* Super Tight Security
* Additional facilities such as pool, gym, club house etc
* Convenience and easy maintenance

I would propose that if you are a small family or a single person or even a couple for that matter, renting out an apartment is wiser as opposed to a house. You can also consider a house if it's within a gated community but you may not find them to be that luxurious. 

The following could be considered to be some of the negatives if you are an apartment-person:

*Space - There are very few apartment complexes here that give you a good sizes apartment
* Garden - This is something you will miss
* Pets - If you have a pet, you will have to drop the idea of living in an apartment unless it's a quite and tamed cat.

I think the two most important factors would be convenience and safety and renting an apartment in Colombo 2, 3, 4, 5 and 7 is advisable.


Renting out a house

Now we come to tricky part of living in a house. This could be divided into two types, namely, gated communities and stand alone houses.

Renting out a house in a gated community

This is as good as renting out an apartment but the facilities would vary. The key here is that you don't have to worry about security and it's safe. There cannot be any burglaries or anything unless the neighbourhood is not so great. I am afraid to say that this kind of property could be found mainly outside the city of Colombo. In addition to the above, you have to share the pool too unlike stand alone houses which at times come with a pool entirely for you. 

Renting out a stand alone house

There is no problem in renting out a house in Colombo. It's safe and secure (of course with the common sense you have, you would know if it isn't when you view the property). There are few things to ask the landlord when it comes to renting out a stand alone house:

* Age of the structure - very important.
* Age of the furniture and whether the house was renovated unless it's a brand new baby
* Whether there is any flooding anywhere near the house
* Who lives behind, in front and on either sides
* Whether it is safe, I have mentioned that it's not a problem renting out a stand alone in Colombo but always take the assurance of the landlord because let me tell you this, where there are humans, there is always this risk of something waiting to happen.

A good way to feel assured is to call up a reputed agency and seek their advice on the stand alone house. Trust me, if you treat the agents with a great deal of respect and ask for their honest opinion, they will tell you things. Agents who have been in the trade for a long time know much more than a landlord who has been renting for ages. 

I have personally come across a large number of expats that have been living in houses and so far, I have not heard of any catastrophes of any kind. We have a fairly large expat community in the Nawala, Rajagiriya, Battaramulla areas mainly because of some schools that are easily accessible from there and those areas just on the outskirts of the city and are seriously growing not only with expats but even locals, in fact, Rajagiriya is an area where some of the richest people of this country reside. There are many foreigners living inside the city too but it's always good to be with herd. 

In conclusion, like I emphasized from the beginning - it's to do with taste and lifestyle. I have come across expats who have asked for apartments but eventually ended up in a house and vice versa. Please feel warmly welcome to read some of the other posts on this blog which I am sure would help in gaining the much needed information you need to decide on the most important aspect of life, wherever you are which is a good, solid roof on top of your head. 

Good luck in finding a heavenly home! 

If you have any questions or need to know more about living in Colombo, kindly drop an email to info.mistert@gmail.com.

FAREWELL TO THE LEGEND! TRIBUTE TO KUMAR SANGAKKARA

Written on 12th March 2015 at 4:00 am

You came, you saw; you won 20 million hearts,
A contribution so great and immense,
And you made it to the top on your smarts,
While the world watched in utmost suspense.


Your presence behind the stumps,
Your elegance in the shots in front of the stumps,
Your eloquence when you’re away from the stumps,
Defined your class, be it in life away or near the stumps.


The passion you emanate in your game,
The determination in your eyes,
However much the same,
Has day in, day out made you but wise.


Your name will always be etched on the cricketing field,
You’ll always be remembered on the field,
You’ll always be loved on and off the field,
For, you’re such a humble human being on and off the field.


A golden star shining so bright,
You’ve always brought pleasance to our sight,
Sharp as a knife; straight as a bullet, be it day or night,
Oh! Watching you play has been such a delight!


Thank you, thank you; thank you!
For bringing glory to this country! Thank you,
For making and doing all of us proud! Thank you,
For being you and just you! Thank you!


Come what may, today, tomorrow or any day,
Kumar Sangakkara is a name that’ll stay,
It will echo into the world in every way,
This; your beloved family and fans will hope and pray!


As you step into a beginning,
With courage, confidence and pride,
We wish you a future so winning,
That success greets you on every stride!


Forget not that you’re an absolute gem,
Sometimes a walking nightmare to some of them,
Cutting and slicing every ball into its hem,
But most certainly loved and admired by all of them.


A career so illustrious we couldn’t have asked in ODI & Test,
With the future so brilliant, with new dreams; hopes and goals,
We wish you simply nothing but the best of the very best,

 For we’re Tamil, Sinhalese, Muslim, Burger and above all proudly Sri Lankan souls!

Written by Adam Thaha
www.facebook.com/thaha.adam

Some Important Questions to ask when purchasing an apartment!!!

I have come across many clients who just don't know where to start. They have the money but they don't have the knowledge. Below is a list of questions that I have prepared for anyone who plans to purchase an apartment. 

So let's imagine that you have seen the advert somewhere or someone has just passed the number to you and you have no idea about the apartment. 

1. What floor is the apartment on? 

This is very important question, the reasons are too many. If you are not a Sri Lankan, you cannot buy below the 4th floor. Even if you are a Sri Lankan, I would advise you to buy above the 4th floor because somewhere down the line, you too might want to sell what you have bought and could at that point sell it off to a foreigner too. 

Another important reason for not buying on the lower floors is the noise, dust and of course the mosquitoe-factor. You have to have a really open and sharp eye to notice these things. You also do not have a great view if you are on the lower floor and at night, you probably won't experience a great deal of breeze. Don't get me wrong, if you are in need of a lower floor and qualify to buy one, go ahead and take it!!! 

2. Do you have a sinking fund? 

If the answer is 'NO', then it can be a deal-breaker! I mean it! Don't even think about buying an apartment which does not have a sinking fund or provision fund. Imagine the structure after 10 years? Someone's got to have a reserve fund for emergency work or future maintenance right???

3. Are the Deeds clear?

This is a tricky question, in most cases, the owners do not get it right and agents have to go through a tiring experience unless the lawyers are really good. I would also like to advise you to not ask this question to Agents purely because most of them have no clue and some because they don't have a clue, simply lie to you saying all is well. The best way to get this sorted is to obtain the copies and hand them to your lawyer who would probably understand the intricacies. A note on the lawyers, some are good and some are lazy. 

4. How old is the apartment?

This is something you would obviously consider at the very beginning, when you have made up your mind to buy an apartment but at times you can get misguided due to budget limitations. Ask as many people as possible about the age of the building and how the apartment was used, who lived in and whether there were any replacements in the fittings etc. 

5. Why are you selling it?

This can be a very interesting question if the response is a foolish one. On certain occasions, the owners tell you the truth on why they are selling it and it is up to you to determine how much of it is bullshit and how much of it is really the truth. 

If you require any more information on apartments or have any doubts/questions, please send them to to info@mrtgiant.com 

KYNSEY PLACE RESIDENCIES - From the Eye of an Apartment Specialist

Kynsey Place Residencies is a small apartment complex located in Colombo 07 on Kynsey Place just near the Carey College. Kynsey place has access from Kynsey Road as well as Ward Place which makes it more interesting. 

Having visited many of the apartment at Kynsey Place Residencies, I felt it would only be fitting to furnish some information about the compound purely because of the feedback that was received by certain clients.

"This is way better than some of the super luxury apartments" - Client from England

"This is the best apartment I have seen so far" - Client from Germany 

None of the apartments is up for sale though, some are occupied and some are up for rent. Looking at the above feedback, the key aspect to consider is that prospective tenants/rental clients frankly are not too bothered about the size of the complex and what facilities it provides, it's all good if there is the pool, gym, rooftop etc. The apartment inside is what matters and if that's superbly done with proper finishing and great materials used, chances are that the much acclaimed super luxury apartments will lose some of its value. 

This is the best apartment in the building and is currently under offer. It's absolutely brand new and has approximately 3000qft with 4 rooms, 3 of them are en suite. Brilliant eh?

This is the best 3 bedroom apartment in the building and is currently available at USD 2000/month. Worth taking a look and you will realize there is hardly anything to complain about.

The other facilities

This apartment may not be in the limelight but it is a far better design than many of the super luxury apartments and gives you that homely feeling. A note on the lighting, this is one of the most fascinating things about this place, the entire lighting of the apartment on the 6th floor is computerized with remote control switches, in other words, you could control the lighting of your apartment from basically any part of the world if you have internet access. 

If you are looking for a decent place in town and are in need of a good advisor who would really put himself into your shoes and assist you in deciding what's good, please get in touch with our Real Estate Agency and we will provide you our best apartment specialist who will shed enough and more light on the subject of apartments in Colombo. Write to info.mistert@gmail.com 

3 BEDROOM HUGE APARTMENT FOR SALE AT EMPIRE RESIDENCIES

REF NO: AFS0067

Beautiful 3 Bedroom Huge Apartment for Sale at Empire Residencies 

Empire Residencies is an extremely up market apartment complex in Sri Lanka with a niche crowd residing at the condominium. Most of the apartments are occupied by expats/foreigners that are attached to embassies and various diplomatic missions. 

The apartment is both a great investment to buy and rent as well as to buy and keep as it will certainly fetch a good return in the years to come. It is also a great place to live in. One of the very best compounds in the country considering the security, size and the facilities such as two parking slots etc. 

Please see the apartment specifications below:

Total number of square feet is 2570 approximately including a terrace of 520 sqft. There are only three apartments at the Empire Residencies which provide this terrace. It is not only spacious but also very breezy, there is no need to go to Dutch Hospital or to any roof top restaurant as this terrace which comes from the apartment gives you that extra facility of having the ultimate privacy. The apartment inside is 2055 sqft with wooden flooring, 3 bedrooms with attached bathrooms, another feature that is hard to find. In total there are 4 bathrooms. 

In addition to the above, there is a separate servant’s room with a separate washroom as well as a separate entrance using a separate elevator again assuring 100% privacy. The servant has a separate elevator unlike many of the apartment complexes in Colombo. 

The kitchen with pantry comes partly furnished with a large double door fridge included with washing machine, dishwasher, oven, and microwave. The master bedroom also comes with walk in closet and the apartment has central A/C. 

There are two apartments on a floor and the additional facilities such as the swimming pool, gym, squash, club house, function area, reading area, lobby, kiddies play area, open garden (which is also used for dinner events along with a concierge and fashionably designed reception area are all available. The building was built somewhere in 2007 and is located in the second most ultra prime location in Sri Lanka – Colombo 02. 

The Jaic Hilton is also walking distance with the Arpico Super Centre, Keellls Supermarket, Urban Kitchen, Cargills Food City, Odel, Banks and all prominent places being a extremely close by. This is a very good deal as the apartment is priced at LKR 80 million and negotiable depending on how soon the buyer can settle the full amount. The deeds and all paperwork are as clear as crystal. 

The apartment was previously rented out to a European embassy and one can easily rent it out at USD 3000/month. 

The advert is only for serious clients/buyer and not for Real Estate Brokers/Agents. 

If you are genuinely interested in this apartment, please write to us via e-mail mentioning the Ref No as the subject in order to organize a viewing info.mistert@gmail.com 

MR. T - The Real Estate Giant - One of Sri Lanka's Leading Real Estate Agencies

WILL THERE BE AN OVER SUPPLY OF APARTMENTS IN COLOMBO?

This is a question that is lurking on the minds of many investors, developers and buyers. Why is everyone talking about this? Are there enough buyers. investors to buy apartments?

Let us study this a little more closely. As of today, we have close to 3000 apartment units in Colombo and a few outside with another 3000 more to come inside the next three years. Even if the number of apartment units increase to seven or eight thousand, here is the interesting thing, a developer once shared a valuable fact with the experts of our company and here is what was told: 

"There are at least 01 million Sri Lankans who have no less than 50 million rupees in their bank accounts!" 

Of course, it doesn't mean that the money is necessarily in the bank but what was mainly highlighted was the gap between the demand and supply. According to this developer, there is a huge demand for semi-luxury and super luxury apartments, also known as A grade apartments and that is why we see Colombo inundated with so many buildings. 

Are the developers getting it right? 

When considering the sizes of the apartments that are being built and that have been built in the recent past, there seems to be an aura of dissatisfaction by many clients who claim that the size of the apartment should be bigger. The older apartments clearly are bigger in size but most of them do not have any facilities at all, but then on the other hand, the newer ones regardless of the size-factor give you an array of facilities from the pool, gym, party area, laundry, supermarket to all kinds games such as table tennis, squash, carrom, pool/billiards, draughts not forgetting a restaurant or a business centre in the same compound. 

Reasons for buyers to complain about the size:

a. A possible reason is that Sri Lankans are used to living in big houses, so the whole concept of living in an apartment can give a claustrophobic feeling when considering the size. 

b. The number of occupants and the lifestyle could also be a factor as Sri Lankans generally like to have the family in one piece although that is expected to change with newly married couples renting and buying separate apartments. Lifestyle is certainly another valid reason. 

c. Storage could also be a possible reason with the experience of living in a big houses, one would have many things to keep and unlike in the apartment-life, you can't just take all your belongings and squeeze them in a tiny apartment. Perhaps compromising on some of the items is an option. 

d. Servant's room and the servant's services is another factor that most buyers look at from a very serious perspective. Certain apartments have very small servant rooms, more like servant boxes and in most cases, there isn't a window for the poor maid to breathe peacefully, sometimes there is no plug point on the wall to even arrange for a fan. Little things that escape the mind of the developers. 

The servant washroom is also something that is looked upon in utmost oblivion and requires some revisiting. 

Coming back to the main topic of whether there is an over supply, in short, we could probably say. 'NOT YET' but you never know when that point would come to light. This is why Sri Lanka needs an independent body that can keep track of apartment sales and bring everybody together in order to study the market more closely and thereby act in a more prudent and efficient manner. 

If you require the services of MR. T - The Real Estate Giant, kindly drop an e-mail to info.mistert@gmail.com

RENTAL - Standard Payment Terms - What is the market practice in Sri Lanka?

This is a very interesting matter mainly because of the rental potential in the market and the type of clients that come to this part of the world.

When it comes to payment terms and conditions, we can look at the following options and gauge an idea of what's best to resort to.

Option 01 - Upfront Payment 

This has been the standard market practice for all these years but it could be safely said that this is changing rapidly predominantly because of the working expats who pay the rent off their salary. Then we also have the local category which also breaks down to newly married couples that are working and need to pay in installments. However, this is how the upfront payment scheme works. Regardless of the period of stay whether it one year or five years, the first payment has to be for 01 year along with a month's deposit (the deposit could be increased if it is a really valuable property). It's best to stick to 01 month's security refundable deposit. 

Option 02 - Two installments 

For instance, if we are looking at a contract of 01 year, we are noticing that many local as well as foreign clients like to resort to a 06 months advance payment + 01 security refundable deposit. This is the most sought after resort that we have across as it brings both the landlord and the occupant to a common ground. The second payment or rather the balance payment is made on or before the completion of the 5th month and then the process continues if the contract is renewed. 

Option 03 - Three/Four installments 

This payment option is also acceptable but it's not the most frequently used/proposed method. Here, the payment in advance is either 3/4 months rent + 01 month security refundable deposit.

Option 04 - One to Three months Security Refundable Deposit + Monthly Rent

This is probably the most favoured option by all clients as they pay a very small amount when it comes to payment terms. The  rent is paid on a monthly basis with a date mutually agreed upon but the security refundable deposit is generally on the higher side. 

WHY SRI LANKAN OWNERS EXPECT A BULK PAYMENT IN ADVANCE?

One might think that Sri Lankan owners are crazy to demand for upfront payments but it has to be brought to light that there is a degree of fear and insecurity in the minds of these owners. The fear that the tenant would not pay up the rent or would not be in a possible to pay the rent, they fear that the tenant may leave without completing the contract period and so, they are at a loss. On the other hand, it also gives the tenant some extra privacy as the owner does not visit the tenant frequently. 

With time, I feel this trend will change and owners will understand and realize that the upfront payment schemes (Option 01 and Option 2) will be something that the owners will have to compromise upon purely because the market is expanding and there are so many expats and high  end locals who have been expats abroad will continue to come to Sri Lanka especially since the war is over and the development of this country being taken very seriously. 

If you require the services of our agency, please feel free to send an e-mail to info.mistert@gmail,com