Compared to buying and selling properties, investing in a rental property is a long-term commitment
that comes with demanding requirements of your time (unless you have someone else to manage this
for you). If you’re thinking of turning that house you bought in seremban into a house for rent in
seremban, you will need to do some soul-searching. In this guide we’re going to provide you with some
tips in order for you to examine your own capabilities and desires to make sure you’re prepared and up
to par to be a landlord.
1. Are you cut out for it?
All that knowledge and skills that serve you well in selecting, buying and selling real estate for
investments are valuable. However, as soon as you step into the realm of investing in rental properties,
you take on the role of a landlord. Then, it becomes more than just a financial investment. It becomes a
business, where people skills and customer relations will become equally as important as financial savvy.
In essence, a tenancy agreement or lease establishes the landlord-tenant relationship, which is both a
conveyance and a contract. Although it may be complicated by a lot of legal matters, and landlord-
tenant relationships may seem like a minefield of things that can go wrong, it does not need to be
fraught with tension. Down to the very core, a landlord-tenant relationship is just customer relations. If
you are honest with your tenants, and your tenants are happy, you won’t have much trouble.
2. Avoid landlord burnout
When your investments become more than just a source of passive income, you might be tempted to
put more of your time and effort into it. Landlording can become a 24-hour job if you let it. Imagine you
become consumed by your worry about the property and have to do an unscheduled drive-by to check
up on your property. Or you come to a point where you no longer want to fix your property because
your next tenant is going to break it anyways. We’ve all had the experience of burnout.
However, you should remember that your priority is that you need to maintain your life’s balance. Of
course, profitability is important, but so is your sanity! Consider planning your management activities of
your rental business with your own health as the priority. For example, when you have a positive
experience from one rental property, you might be tempted to move up to multiple properties to
multiply income. However, think about whether you can handle the added pressure and stress when
you decide to expand your rental business. Whenever you feel you’re about to get in over your head,
take a step back!
3. Select your tenants with caution
Tenant selection is a precarious process. This is one of the most important, if not the most important,
tasks confronting investors seeking to start a rental business. Get the right tenant and you’ll have a
positive experience. Get the wrong tenant and it might end up breaking the bank.
Do not skimp and shortcut on the tenant selection process. You can consider outsourcing this process.
Nowadays, multiple companies exist specializing in vetting tenants. They perform a range of checks,
from credit to full background investigations. On the other hand, if you prefer an old school approach,
you can try having face-to- face meeting with your prospective tenants to get to know their character
and suitability. Although this might seem like a hassle, it is a reasonable process, especially when
compared to the cost of eviction.
4. Setting the rent
You might think that deciding on the rental price of your property is only a matter of matching the
market rates. Of course, it is important to have comparatives: you should look at prevailing rental prices
for similar properties in your area. However, that is not the only factor to look at. There is a whole host
of other factors that can give you some room and leeway to manipulate the rent price. Think about
factors such as whether your property is furnished, whether there are any interesting pitches about your
property that could attract more clientele, and whether your property can compete, if not outperform
other similar properties in the area. Sometimes, raising or lowering the rent price can influence tenant
choices and long-term occupancy.
Don’t forget that rental price fluctuates with prevailing market prices. That means that you shouldn’t
treat setting the rent as just a one-time activity. Keep up with your market research and property
valuation endeavors. You should be doing market rent analysis at least annually. Try to complete this
before the expiry of the current tenancy agreement. You never know, market prices might have
increased since the beginning of your tenancy agreement. You might end up missing out on an
opportunity to increase your rental income.
5. Plan and budget for repairs and maintenance
Your rental property is not a dollhouse sitting behind glass doors. It doesn’t matter if your rental
property is used as a home, or as an office. People will use it and also live in it day-to- day. This will
undeniably cause some normal wear and tear. This will necessitate repairs and routine maintenance.
However you pan and budget for these problems, don’t skimp on it! Learn how to work in repairs to
keep your tenants happy. For example, work in upgrades and repairs when your tenancy is about to
expire to motivate your tenants to continue the lease. How you treat your rental property shows a great
deal about how much you care about it, and by association, how much you care about your tenants. This
will also influence their treatment of it.
Make sure you budget repairs and other maintenance costs into your rents. Save aside a portion of the
rental income for repairs. You should aim to do annual maintenance on the property. However, things
are bound to break once in a while, so having a fund set aside for repairs will save you when a rainy day