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Renting Out A Property For The First Time? This Is Everything You Need To Know

Congratulations on the new landlord status!
14 Sep 2020, 09:00 AM
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renting out a property for the first time? this is everything you need to know

Image via Freepik and pressfoto/Freepik

So, you’ve finally taken the leap into property investment and purchased a house to generate rental income. Now what? Well, before you can sit back and let the money roll in every month, there’s some work to be done…

#1 Does the house look presentable?

This is as basic as it gets. Do a quick check of the house to ensure that there are no damages—think wall cracks, leaking pipes, mould and more. Furnished house should come with appliances and fixtures that work smoothly. If you have the budget, it helps to give old paint a fresh coat too.

renting out a property for the first time? this is everything you need to know

Image via StockSnap/Pixabay

To put it simply, if you don’t want to live in it, chances are, others don’t too.

#2 Should the house be furnished or unfurnished?

There’s no right or wrong with this question—it depends on your budget, preference and the type of tenant you want to attract. However, it’s important to understand the pros and cons of each option before you making a decision.

renting out a property for the first time? this is everything you need to know

Image via Jean van der Meulen/Pixabay

Furnished houses—with beds, sofas, tables, etc—could give you a higher rental price, more rental chances and short-term tenants. Of course, this also means spending more money. So, do your math and ensure that your returns will make up for that cost.

If you choose to leave the house unfurnished, it doesn’t mean that the house should be completely empty. Basic amenities such as lights, fans/air conditioners, washing machine, toilet fixtures and curtains should still be there. Unfurnished houses mean a lower cost, not having to replace damaged or worn-out furniture and longer-term tenants.

#3 What should the rental price be?

Here’s where some research is necessary. You may have a beautiful property that’s worth RM3k every month, but if there’s a nearby property that’s not too bad and only costs RM2.5k, it’s no surprise which one the tenant will choose.

renting out a property for the first time? this is everything you need to know

Image via Freepik

Ultimately, being a landlord is like running a business—your asking price has to be competitive. Ask around and find out what the average rental rate is like in surrounding areas.

Then, using that info, compare your rental income and expenses—this includes maintenance, mortgage, insurance and the likes—and decide on a price that works. You can find out how much you should charge for rent using this handy rental price checker.

#4 Who should be held liable for what?

Tenancy agreement—this legal contract is currently the only document protecting the rights of landlords and tenants (until the Residential Tenancy Act comes in effect) in Malaysia. In short, this is the document that states the roles and responsibilities of the landlord and tenant.

renting out a property for the first time? this is everything you need to know

Image via New Straits Times

With a lawyer or professional’s help, some of the basic details you should include in this document are: the duration of tenancy, renewal of tenancy, obligations of both landlord and tenant, rental amount and a list of furnishings that come with the property.

Think also about adding additional clauses such as how disputes should be settled, whether renovations are allowed, and the state the house must be in when returned to you.

#5 How to get good, responsible tenants?

While it’ll be great to assume that every tenant is a good one, the reality is, there are some bad ones too. Hence, it’s really important to screen your tenants before you hand over your keys.

renting out a property for the first time? this is everything you need to know

Image via pressfoto/Freepik

Speak to them to evaluate what they are like, do a background and credit check, and see if he/she has a criminal history. Doing so helps to reduce the risk of late or missing rent and property damage, and saves you from a whole lot of tension!

There are many ways you can list your property and reach out to tenants. However, if you’re looking for a convenient and safe option, consider SPEEDHOME, an online property platform connecting landlords and tenants to rent direct… sometimes in under 12 hours!

renting out a property for the first time? this is everything you need to know

Image via SPEEDHOME

The easy-and-safe-to-use platform prides itself in allowing tenants to rent a home with zero deposit while also offering many benefits to landlords:

  • Partnering with Allianz, SPEEDHOME protects landlords with up to RM42k in insurance against damages, theft and loss of rental—a far better assurance than the standard two-month deposit.
  • SPEEDHOME promises to deliver only quality tenants thanks to its strict zero deposit eligibility checks.
  • Once a tenant has been confirmed, SPEEDHOME will manage the entire rental process until the tenancy ends.
  • SPEEDHOME will be rolling out its Overstay Cash Defender service on 7 September 2020, which secures rental income for landlords even if the tenant overstays without paying.

To kickstart your rental process with ease, head on over to speedhome.com.

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