4 Things to Know Before Renting Out Your Unit - the Makeover Guys
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If you're new to the world of property investing, we bid you welcome! Things are about to get REAL (estate), so let's learn as much as we can in order to make informed decisions. For all first-timers out there, here are 4 important factors to pay attention to before letting out your property.
1. TENURE / DURATION
Are you going for long term or short stay? Short stays would entail accommodating tenants for several days to a week while they're on a holiday or attending a concert (eg.). Long term stay requires a commitment of 1 - 2 years from your tenants, or even 2 + 1, which means the rental rate is set for 2 years but the tenant can opt to request for another year 6 months before the tenancy term ends. So make sure you are a good landlord lah.
2. RENTAL RATES
As an owner, you can't really demand just any amount - it would have to be based on the market rates for your current property. How do you find out market rates? Get as much information as you can from agents and property portals. If you engage us for a makeover, we'll help you find tenants based on thorough market research at no extra charge.
3. TO FURNISH OR NOT TO FURNISH?
Are you planning to rent out a bare unit, partially-furnished unit, or fully furnished? This is where most investors get stuck because of the extra costs involved. Ultimately the BEST strategy is to enhance the quality of your unit within a feasible budget (*cough*that'swhatwedo*cough*). The goal is to make your unit STAND OUT among the other hundreds / thousands that are competing for rent.
4. UNIT A MANAGEMENT PLAN (pun intended)
Yes you do - this is essential as a property owner because every time your property changes hands, you have to know who will check on the unit's condition, who is to clean the unit and prepare for the next tenant(s), have the utility bills been paid, etc. For short term stay properties this would require a large chunk of time because the unit changes hands so often that it is practically a hotel.
You may want to engage homestay management services such as Sleepy Bear and IdealHub for short stay, and our rental arm CozyHomes.my and property management arm ThePropertyGuys.my for longer-term tenancies.
Arm yourself with as much information possible and you'll be able to move forward with confidence. As fellow property investors ourselves, we know one thing about real estate always hold true - the only way to learn is by actually biting the bullet and doing it.
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The Makeover Guys helps property owners secure tenants and maximize their rental potential through tried & tested designs, budget-friendly strategies, and useful market insights.
(This article was originally published by The Makeover Guys)