10 Tips on Choosing a Good Tenant
The current slow market is not an excuse to relax your guard and simply rent to any Tom, Dick and Harry.
Here are 10 things to think about when choosing your potential tenant:
1. The 'don’t like at first sight' type
If you do not have a good feeling about the potential tenant during the first meeting, remember that this is just a tenant. If you don’t like, don’t rent.
There is no need to try to evaluate before rejecting. Remember, ejecting them will be very hard in the future.
2. The unrealistic negotiator type
After the viewing, they will try their best to negotiate for a much lower price by commenting that your property is way below their expectations. Alternatively, they ask for far too many extras.
If your property is really that bad, it is better for them to view other cheaper units. This type of tenant is just too calculative.
3. The ‘don’t care’ type
Many owners really mind about potential tenants who do not even take care of how they smell. Perhaps they are messy, or did not wash their clothes?
Even if they have just come from the gym, they should take a shower before coming for viewing. If you know how to respect people, they should also know how to respect you.
4. The secretive type
Questions such as what do you do for a living should be answered directly. As the homeowner, you have no issues telling them what you do for a living but if they can not do the same, there’s something wrong with them.
Of course, they can always resort to lying and you will have to take that at face value.
5. The threatening type
Before they even come for the first viewing, they are asking for a lower rental. They will not want to view unless you lower your rental.
You should never price yourself out of the market where without even viewing the property your potential tenant is already trying to negotiate a lower rental.
6. The ‘missing in action’ type
It’s hard to meet them even once. They get their agent or friend or someone else to be the middleman. It’s okay, just let them be.
You should meet your potential tenants before you say yes to the deal. These days, it’s possible to have a video call too.
If it’s so hard to meet them for the first time, when you really need to meet them in future, it will be almost impossible.
7. The complaining type
When you ask, they will tell you that they are looking for a new place because their previous landlord was very bad. Asking them to explain why their landlord was bad may reveal the not-so-surprising reasons why their landlords were bad to them.
8. The foolish type
They come to view, knowing that it is a fully furnished unit. After the viewing, they ask if they can rent your unit without the furniture.
If you say no, they will most probably ask you to lower your rental as they do not need this equipment and that furniture.
You should not negotiate at all and let them loose as these are pure time wasters.
9. The second secretive type
When you ask them how many people will be staying, they have to think for a while before answering. It is always good to include this number in your tenancy agreement if you have it.
You have to take into consideration that your tenant is going to sub-let your place and turn it into a disaster relief centre or a student ‘megamall’. Couples who are both working are the best.
10. The ‘not-enough-money’ type
They will ask if they can pay just one month’s advance and one month’s rental. The other month’s deposit they will request to pay later.
Within a few months, they will delay payments and then graduate to not paying at all. You will then be forced to find ways to evict them.
Note that a good tenancy agreement is a must. Malaysia does not have a Tenancy Act at the moment although the government says it is a work in progress.
Your property is worth a few hundred thousand Ringgit. The rental is likely to be a thousand Ringgit every month.
Your risk is just too high. If the tenant turned out to be troublesome,’ it will take you a long time to remove them legally. Welcome to the world of property owner and tenant. – FMT Property