Why Clients like Mister T

It has come to our knowledge that Mister T is slowly becoming the preferred Real Estate Agency in the country with so many calls from clients, emails and other leads generated through the company's marketing strategies. The most effective being word of mouth. It's spreading like wild fire!

Below are a set of reasons on why clients like us:

- We are honest to the core - Honesty is the main pillar on which Mister T stands.

- Money is not our focus, the service is and in most cases we spend on deals unlike other Agents/Agencies.

- We respond within 24 hours and are contactable 24/7

- We have a fan base of approximately 63,000 people following us on social media

- Our Blog has amazing views from all over the world

- We use the international standards and traditions with a pinch of local essence

- Our clients are well-respected and reputed clients who value honour, dignity and kindness

- We are a registered agency with proper systems in place

- We are backed by a giant who has been in the trade for over 30 years

- We specialize in condominiums and have a solid idea of what's in the market

- We provide the legal service to your doorstep

- We facilitate right up to the end of the deal and build a lifelong relationship with our clients

- We are reliable and responsible in what we do

- We love what we do!

The mystery behind the security refundable deposit

Many a time, we have come across property owners grumbling and getting too worried about the security refundable deposit.

The standard norm of collecting 01 month's rent as a security refundable deposit.

The above option is best used when the owner is able to collect a large amount of the rent in advance or upfront. Although it is best advised to screen the client, it is also equally very important to maintain an amazing relationship with the potential tenant as that would minimize a great deal of risk.

The word 'Standard' is mentioned because that has been the standard in the country when it comes to the rentals of homes and apartments and sometimes commercial buildings.

When should you ask for a 03 month's security refundable deposit?

This option is mainly resorted to if the rent is being paid on a monthly basis or the if the number installment payments is higher side. This too is very tricky when it comes to apartments and expats as many expats who are here on a salary tend to limit the security refundable deposit to one month and then pay on a monthly basis from there on. In such instances, it is of utmost importance that the property owner screens the client and if possible, obtains a letter from the potential tenant's employer or gets to touch base with someone known to both parties.

Is it fair to ask for a security refundable deposit of more than 03 months?

It is unfair if you are renting an apartment or house and getting the upfront money as well. Generally, the deposit is high on business premises and not residential properties. Sticking to 01 month is best if you a getting a decent amount upfront or else sticking to 3 month's is okay if the rent is paid on a monthly basis but it's not advised to increase the security refundable deposit just like that. The situation has to be considered and it's always good to be flexible on that.

Is it good to stick to a flat rate?

Some owners like to stick to flat rate as they have this insecurity ingrained in them that the tenant may damage a great deal and there will not be enough to compensate for the negligent wear and tear in the devised premises. In this instance, it might be best advised to stick to a flat rate which could less or more than a month or two of the rent quoted.

Other important aspects to bear in mind when determining the security refundable deposit.

The quality and brand of the furniture in the property plays a major role when determining the amount of the security refundable deposit.

Proper screening of the client, this is the main bit. If this is done properly, you would know how much is a safe figure for you to give out the apartment.

Standard market practice is also advised to be studied and researched so you know you are not making a fool out of yourself.

Seek the advice of a property consultant or property agency and get their input on the matter.

Inventory Checking!!!

Do you check the inventory when you move in? How does this work? Who checks and how do know whether this is not going to cause a problem later on?

Interesting questions indeed!!!

In Sri Lanka, a country where its people extremely hospitable and friendly, things work slightly differently unless you bump into serious, scary and stone-hearted property owners.

As a pre-requisite, the owner should have the inventory prepared. If the inventory is not prepared, a real estate agency could do the job.

In most cases, the inventory is casually run through and it does not take much time to sort the items in the property (if the property is not huge!)

Generally, inside the 1st week, you as a potential tenant must inform the owner of any discrepancies where the inventory is concerned.

If you could do this, then you can be sure there won't be a problem at the end.

If you have any questions regarding the above, please send an email to info.mistert@gmail.com

Thinking of undervaluing the figure on the deed? DON'T!

Many lawyers and property buyers try to play around by undervaluing the figure which is supposed to be placed on the title deed, so a lesser stamp fee is paid to the government.

In some cases, Lawyers also think they know better and advise good, genuine people too place a lower figure on paper.

The reality is that the government officials are not fools, they are way more smarter than we think and understand the game better. At the end of the day, it's the government official (Assessor) that makes the call whether the value is less, too less or just about right.

What happens if they find out you have undervalued? 

Have you ever thought of that?

Chances are that they would make a visit to the property, do a fresh valuation and then place the figure they think is the value of the property and then issue the stamp fee. For the first LKR 50,000/= it's 3% and then for the balance amount it's 2% and on top of that, there is a penalty / surcharge of 15%.

You have to pay that and then they seal the original document which means you have paid the required the stamp duty fee to register the property.

So be very careful and get it right the first time.

Mister T brings reliable clients. TRUST matters more than anything!!!

At Sri Lanka's number 1 Real Estate Agency, there is special emphasis placed on the clients that come in for rentals. Mister T has seen it all. The good clients, the naughty clients and the not so good clients.

The Agency not only has a huge fan base on Facebook but also knows pretty much how to connect the clients in a way where they can screen the clients and advise the owner whether to go for the deal or not. A rare quality among the agents in town.

Sri Lanka is developing at an amazing pace and more and more deals are hitting the table allowing more and more people to get in and share a piece of the cake, at Mister T, we value the relationship more than the money as we are here to stay.

Get in touch with the Agency if you are interested to work with them and enjoy a fruitful experience.

The Tranquility - Hottest Deal in Town - BOOK NOW!!!

The Tranquility is designed by a Geoffrey Bawa Award Winning Architect 

PROJECT DETAILS

A total of 11 properties with 08 apartments, 02 penthouses and 01 villa along with a roof top with luxury facilities. Built on a 22 perch land with tight security in a peaceful and serene neighbourhood, The Tranquility is the epitome of a fantastic holiday hideaway not too far from the city of Colombo in a classy location.  The floor plans are as follows:

APARTMENTS 

 

PENTHOUSES

VILLA

ROOF TOP ARRANGEMENT

Other Information

• The project is approved by Sampath Bank and loan facilities could be arranged. 
• The apartments are very spacious as opposed to many of the same complexes in town.
• The prices are very reasonable and are bound to shoot up in the years to come. 
• The project is expected to be complete by 31 July 2016.
• The payment plan is very flexible and buyer-friendly.
• The fittings and finishes are of high quality. 

You can find out more details if you visit www.thetranquility.lk

Please feel free to contact Mr. Adam on +94 767 582 458 should you require any further information on the above project.

MORE PICTURES

"Deeds Clear" Do not fall into the trap!!!

The paperwork stage can be a killer and an eventual deal-breaker. So many factors into play but the important of them all is the bunch of ownership papers.

We often see clear title or clear deeds on ads, trust me - It's not so clear when that is said. You have to get a proper lawyer to check on this. All lawyers are not equally smart and its best that you go with a reputed lawyer - (Yeah I know what you are thinking - THEY are expensive) but then you don't want to end up going to courts and fighting cases for years.

There are stories that directly relate to the above. The information is so sensitive that a blog post cannot be made on such stories although it's quite tempting to do so.

One good way to buy properties is to go through a bank loan, they check everything thoroughly before approving the loan. If the bank agrees to give you the loan, then the property looks okay in terms of paperwork but otherwise you can be in a spot of bother. Very Important!

RENEW or NOT RENEW?

So you have rented out your place to someone and they want to renew the contract, what should you do? What's normally done? How does it work?

OR

You have been on rent and the term is coming to an end and you are wondering what to do. What's best and how to go about the situation etc.

If you are not aware of the answers to the above, then this blog post is definitely for you.

First things first on the topic of renewal - Read the agreement and see what it says if you didn't get it in your favour at the outset. Some owners are smart and generally demand a 10% increment on the second year's rent whereas some tenants on the other hand sign up flat for 2 years for the same rent and thereby eliminate the increment aspect. 

If either of you is thinking about calling it off:

Do your research on this properly, if you are getting a really good deal, then just let the status quo remain. It could be that the prices have gone / down, check out the market rate, talk to a proper property professional who can actually advise on what best could be done. 

It's rare to find many people in Sri Lanka staying on rent for long periods of time unless the place is exceptionally exquisite. The locals generally like to stay for long periods of time but the owners here are not too pleased with the not-so-great lifestyles. A lot depends on the type of person you are dealing with and also the type of client you are turning out to be. 

Cutlery - Crockery - Inventory Checking - Do you know how it works?

Checking in can be a challenge to a certain degree if the owner is not too friendly. Below is a list for you to peruse just before you head into the lawyer's office to sign up:

Furnished Apartment/ House- Serviced 

There is very little to worry about as this is a short term stay and most of it will be there and is recorded without any items being missed unless you bump into an owner who is doing it for the first time and does not know what and how to do it properly. Generally, from the cutlery, crockery to the bills and changing of linen, everything is included in the price as it's a SHORT term stay. 

Furnished Apartment/ House-Long Term Rental 

This is where it gets tricky which is why it has been reiterated on many of the Blog Posts in this BLOG that maintaining a good relationship with the owner is of paramount importance.

Plan it your way - Always be very particular about the inventory and somehow get the typed inventory emailed to you. Regardless of where the signing the takes place, it's a must to cross-check the inventory with the owner or the owner's property manager and as soon as you find any discrepancy, send in writing (via e-mail) copying the lawyers notifying what is missing or what is extra or what is broken etc. 

There are certain property owners in town who cannot stomach basic wear and tear and they try very hard to cut as much as possible for the security refundable deposit which is why clients are encourage to maintain a good rapport with the owners and ensure that there is an honourable ending to the deal when the time comes.

Generally for long term rentals, it's a bonus if the owner is throwing in the cutlery, crockery and linen as they are usually not provided mainly because the client would have a certain taste or may be in love with certain brands which fit their lifestyles and hence, the owners leave it to the prospective tenant when it comes to the above. 

Unfurnished Properties 

There is not much to say when it comes to an unfurnished property, if it is a property with a structure, then it's still best to capture the fittings and other built-in furniture or items which may or may not be that important to the owner. The key with such properties is to look for construction flaws / damages etc. 

Accommodation has become a very hot topic in Sri Lanka and there are new developments in almost all the parts of the country not only boosting the real estate in the country but also making it look inviting and pretty. The gap is slowly being filled especially when considering the tourist arrival statistics. 

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.