Kuala Lumpur, one of the biggest cities in the Southern Asia, boast itself as a metropolitan city functioning as a global business and tourism hub. The city’s economy grew over the past years and at present, is one of the alpha city with market capitalization standing at US$505.67 billion in 2013. The multitude of new buildings and imposing constructions are perfect proof of the city’s’ charter to be a modern and well-organized city.
The higher living expenses in Kuala Lumpur as compared to other states are comparable but ranks lower when compared to other Asian countries like Singapore or Hong Kong; one may observe that Kuala Lumpur is an affordable place to live in.
The booming economy successfully attracts investors and MNCs to Kuala Lumpur. This leads to exponential growth in real estate market, leading to a high demand of property to rent. If you own a rental unit in Kuala Lumpur, below are 4 helpful pieces of advice that may be useful in successfully renting your property while improving your property’s value as a hotspot for future tenants.
1) Evaluate your condo
Evaluate and gauge your rental pricing by browsing multiple property portals such as PropertyGuru to give you a better idea on suitable prices that appeals to customers. You may visit http://www.propertyguru.com.my/kuala-lumpur/condo-for-rent/1 and narrow down your choices by using various selections such as the size of your unit, furnishings provided and other amenities that you may provide for your property.
By viewing other profiles, you may estimate your property’s worth with others in the same region. By adjusting your rental accordingly, you may be able to fix your rental at an attractive value to guarantee yourself fast tenure-ship.
2) Inform your future tenant over the upfront and/or additional fees
There are many situations in which potential tenants takes interest in your condominium/property, agrees to your financial requirements and decides to take it. Unfortunately, your tenant may face additional fees that were not mentioned during the initial agreement such as tenancy agreement. Although such agreement is resourceful ways to guarantee yourself longer tenancy and profit, it would be advisable to mention any fees that may be incurred during the initial discussion.
Tenancy agreement should be straightforward and outline any fees or deposit that the potential tenant may need to pay upfront. Security deposits covering two months, a one-month utilities (water and electricity) deposit and one-month rental in advance are common miscellaneous fees before settling any agreement with your potential tenant. Therefore, if the rental is RM2,000, the amount payable upon execution of the tenancy agreement is RM8,000. Conveying the right information may help to clear doubts and prevent confusion or misunderstanding between you and your potential tenant.
3) Market your place properly
Demand for rental units are high in Kuala Lumpur, but with wrong marketing strategies, you may be losing out on potential tenants even with competitive prices. Choosing the right property portal is definitely one way to go but do note that most portal only open their gate to property agents. If you find yourself in this situation, you may appoint a property agent to help advertise your unit in the condo for rent in KL section.
There are many factors that can make or break your potential deal. The most notable deal breaker are photos of your unit. This gives a window to potential tenants on their future home in the near future. As a rule of thumb, do not attempt to use photos from similar units as your unit may not have the same layout and/or interior design. Be creative and take your own! Find the right angles that best features your unit and play with the lighting if you must. However, do cover every room in your unit and fill them with concise descriptions.
4) Get to know your future tenant
If the tenant is satisfied with your condo and the required rental fees, do not seal the deal just yet. Get to know your tenant by asking his occupation and other lifestyle choices. This would give you an idea if your future tenant has a steady income and is able to pay his rent in a timely fashion. Lifestyle choices such as being a smoker may help you revert your offer if you prefer renting to non-smoking tenants.
By asking these questions, you may be rest assured you are renting to an individual who is capable of respecting the unit as a home.Keep the conversation in a positive tone but do explain that any damages arising from the tenant’s occupancy will have to be covered by the tenant, or risk eviction. There’s more to renting your unit to gain extra, but setting ground rules may be good in the long run.
So here you go, four rules to successfully rent out your unit. Your patience would reward you with the right tenant!