We live in very peculiar times, falling oil prices, deprecating currencies and fuel shortages, homeowners and buyers must seize the opportunity to make profitable long term buying and selling decisions. Before we delve deeper we must acknowledge the benefits of private sales, for the buyer it means no agency or legal fee and a seemingly faster end-to-end processing time. The benefits are somewhat similar to the homeowner, heftier cheques and quick disposal of the property in question. However this can only occur in a scenario whereby the said homeowner has an extensive network that can potentially and consistently match a potential buyer to his/her property. This isn’t always the case. Here are some reasons why you should ditch the DIY voice in your head and let a RE/MAX agent guide you in listing your property on the market.

RE/MAX is the #1 Name in Real Estate

Let the brand do the talking

RE/MAX are world leaders in brand awareness and has the largest fleet of hot air balloons in the world. Our brand is everything to us and we make sure people know it, we invest heavily in our projects, people and advertising, making sure that RE/MAX stays on top. How does this translate to your property? By association, you as the homeowner and the property are given instant credibility, people have the tendencies to stick to what they know or simply just choose the attractive banner with the hot air balloon.

Nobody Sells More Real Estate than RE/MAX

With 100,000 agents in over 100 countries, we have a greater worldwide presence than any other real estate brand. Yes we said it, any other real estate brand.

We owe our success to these outstanding agents who average more real estate sales experience than other real estate agents. Owing to the nature of our business model, our agents strive to be the best at what they do because they lie at the heart of RE/MAX, they are the lifeblood and they know it. Our agent-centric approach leaves our agents happy and well-motivated to sell and lease properties at alarmingly fast turnover rates.

Customer Service

Doing your own thing is all well and good until you find it hard trying to sell or lease the property and before you know it, it’s been 6 months and your bank starts calling for repayments. With RE/MAX, apart from delivering great, transparent service, we also strive to send progress reports on your listings with us so that you can rest easier at night.

Client Check

Do you have a preferred tenant profile? No pets? Not to worry, while we respect and value the privacy of all our customers, we strive to find the right fit for your property by finding the balance between both parties’ preferences.

Transactions done through an agent, having fulfilled due protocol and legal obligations  give homeowners and buyers a greater sense of security and credibility . RE/MAX offers our clients years of experience gathered through triumphs and defeats. We know what it takes to get you to your property goals and we will help you get there. Speak to a RE/MAX Agent today.

Lesi Kpagih

General Associate

Remax Premier

07026020181

0700-GO-REMAX

lkpagih@remax.ng

www.remax.ng

52A Omorinre Johnson st

Lekki Phase 1

Lagos

Continue reading

The scenario of two year rent has become rampant especially in Lagos State. Most landlords have stuck to their guns in demanding two years rent from tenants undermining the tenancy bill passed in August 5th 2011 (which prohibits any landlord in Lagos from collecting rent in excess of one year).  What are the possible factors fuelling the demand for two years rent especially in Lagos? Is it a win-win situation for both parties?  To answer these questions, industry experts at RE/MAX Nigeria conducted a survey to investigate the pros and cons of a two year agreement for both landlords and tenants respectively.

Despite the economic situation of the country, and the efforts of the Lagos State Government to discourage the collection of two years rent in Lagos, landlords have doggedly persisted in their demand for two years rent for the following reasons;

Investment purposes: The first reason is that most Landlords demand two year rent because they need the lump sum of money for investment purposes. A year’s rent might not be enough to invest so most landlords insist on two years. 

To attract committed tenants: Most landlords believe that a two year lease shows that the individual is serious and willing to commit to their property by committing to stay longer. So most landlords put a two year rent in other to attract people who are financially buoyant, and have plans of staying for a longer period of time. 

Peace of mind: Renting a property takes a lot of time. Some properties stay vacant for about 6 months or more in some cases. A two year lease gives the landlord peace of mind that their property will not be vacant for the next two years.

Despite the advantages, a two year lease may pose some problems for landlords. Some of the common problems include; 

Difficulty in vacating troublesome tenants: If a tenant is troublesome for example, the landlord may have to bear with such a tenant for a period of two years when their rent expires before he can vacate such person. This could be a sour period that would require patience on the part of the landlord to bear until their rent is due. This is the reason why you should employ the services of a certified real estate agency like RE/MAX when looking for a tenant or a property. Our experts ensure that due diligence is taken and potential clients are screened thoroughly. 

Difficulty in yearly rent increment: A two year rent also makes it tough for a landlord to raise the rent.  This may only be possible if the landlord puts a clause in the agreement that rent would be increased at a certain percentage after the first year, of which many potential tenants would decline. Otherwise, the landlord would only be able to increase the rent every two years instead of every year. 

Property might remain vacant for longer: Taking the economic situation of the country into consideration, not many people have lump sum of money to pay a two year rent, as a result it might take longer to find someone to rent the property. Thus, the property might remain vacant for longer.

As opposed to common believe, a two year contract has some benefits to the tenant. Some of these benefits include;

Stall rent increment: Most notably, the tenant will benefit because the landlord cannot increase the rent until after two years.

Better deal on the long run:  In return for promising to stay a two year term, a tenant could save a reasonable amount of money on the long run. Filling a vacancy can be stressful for landlords – they have to paint the walls, clean, fix damages, etc. which can cause serious financial strain in between tenants. Sometimes the risk of not finding a new resident quickly is enough for your landlord to offer you a less expensive rental rate than what you would get with a one-year lease.

Stall the stress of packing: The best thing about signing a two-year lease: You won't have to go through the painstaking process of packing and moving all of your stuff again for at least two years. 

The major downside for the tenant is having to produce a lump sum to pay for the two year contract. Other issues maybe, not thoroughly examining the house and its facilities well enough before moving in. If the area is prone to flooding, or the interior finishing is substandard, the tenant would have to bear until 24 months when their rent is due. 

The findings show that it is more profitable and economical for both parties to sign a two year lease agreement. The landlord will not have to renovate every year or have to look for someone each year to rent the property. On the other hand, tenants stand a chance of getting a fairer deal in a two year agreement as opposed to one year contract, as landlords are looking for lump sums to invest. The major problem remains that, not many people are able to produce this lump sum to pay for a two year rent as a result of the high cost of living in Lagos and the country in general. In this regard, one can understand why the Lagos State Government have placed a ban on landlords demanding two years rent though the law has remained ineffective thus far. As a recommendation, landlords should not insist on a two year rent (as not many have the capability to produce such lumps sums) but rather make it more attractive to pay for a two year contract (at a cheaper rate) as opposed to paying for one.  

Continue reading