Owning a rental property is a great way to make some extra income. However, being a landlord comes with its own set of risks and responsibilities.
Here we will tell you some tips that will help you protect yourself and your property.
Choosing a tenant:
Before making a property investment, it is important that you find out what areas you would like to invest in and who your target group for renting out is. For this, you will have to conduct research about the area and the facilities around the property you are interested in.
In addition, you should pay attention to the infrastructure, shopping and level of crime in the area. If you have the opportunity, you should visit the property in order to experience the neighbourhood and understand what you are buying. Knowing this makes it easier for you to market your future property to the relevant tenants. Remember that the final rental price should be based on the average price of the building and the state of the apartment.
Your rental property:
After doing all of this research, you need to make sure that your property is livable for your tenants. Check the condition of the plumbing, gas, water, electricity and roof. If needed, repair or replace any broken or old parts to make sure your tenants have a great experience. Also, think of the small things like installing smoke detectors and locks on all the doors. After the tenant has signed the rental agreement and has moved in, it is important to regularly check with the tenant in order to make sure that the property stays in good condition.
A tenancy refers to an agreement for a rental period of less than three years. Malaysia does not have a Tenancy Act; this means that there is no specific law about tenancies. The governing document of a tenancy is the rental agreement. It is very important to clearly write up the rental agreement. Always specify the number of tenants, if pets are allowed, the rental rate, the start and the end of the tenancy and how you will handle late payments. Also, establish guidelines for special conditions such as using the public facilities and equipment.
By signing a rental contract, each party is aware of their rights and responsibilities in regard to the property. A legal advisor can help you make sure all necessary subjects are addressed in the final written rental agreement.
Finally, determine what type of insurance suits you and your property best.