Things To Know About Being A Landlord

Things To Know About Being A Landlord | There are lots of reasons to buy investment property and become a landlord. For example, there are numbers of Rawang property for sale where you can consider to buy these properties and become a landlord. It is a positive long-term investment strategy that provides passive income streams. Some people who become a landlord by accident are often homeowners who had to move, maybe for work or family reasons, but could not sell their houses. However, becoming a landlord can be complicated, they all have ultimate responsibility for a long list of tasks. There are many things that a landlord should know before investing a rental property or renting it out for a tenant so as to prevent potential conflicts and disputes in the future.

1. Choosing the Location of Rental Property

The location of a rental property is essential. It is easier to manage a property if you stay or work near it. Choosing the right rental property can also affect your return that you can expect to see on your investment property. It is important to ensure that you are buying such property in a neighborhood that is either already stable or is up and coming. There are some positive signs to look for including businesses that are ready to open, clean streets, working street lamps and well cared for properties. Littered streets, multiple abandoned houses, and neglected neighborhoods are things to avoid. You can choose to invest in a condominium, small office home office (SOHO) or even serviced apartment. Think through your budget and your cash flow goals when deciding on what type of property to invest in. The type of property you choose will also define the amount of cash assets needed for repairs. 

2. Managing and Maintaining the property

All the responsibilities or duties as a landlord and the obligations as a tenant must be specified in the tenancy agreement which is a legally binding document between the tenant and landlord in a said property. The tenancy agreement in Malaysia is usually signed on a 1+1 year basis to limit the termination of the tenancy. Although the 1+1-year tenancy is widely used in Malaysia, the tenant and landlord could further discuss the duration based on their needs. 

Generally, landlords are responsible for the physical management of the property, including regular maintenance and emergency repairs while the tenant will pay for the water and electricity charges. 

The landlords may add in some additional terms or clauses in the tenancy agreement on the wear and tear of the home appliances. For example, the tenancy agreement may contain a clause saying that the landlord will take full charge of any repairs occurring within 14 days after the tenant moved into the unit. However, the tenant will be responsible to pay for the cost after that. The other example is that the landlord may include a clause on the loss of keys and access card during the lease. The purpose of stating clearly each specific terms or responsibility is to prevent future disputes. 

Maintaining the property can start with simple thing like arranging consistent pest control services. By checking on the property regularly, the tenant will know what works, what does not and when things need to be replaced. It will also keep you aware of damages that caused by the tenant.

3. Tenant Screening

Good tenants are the most important part of being a landlord. They can cause the difference between positive and negative cash flow. They can make being a landlord a breeze or make it a nightmarish. Since they are so important to your long-term real estate investment, make sure to find the right ones. If you do screen tenants by yourself, you could also ask for more details such as their occupation, workplace, and even a referral from the former landlord. Another option is to get a good tenant is by hiring a professional real estate agent who can help to streamline, simplify renting logistics and find you a quality tenant. Having a quality tenant is the significant to a successful property investment.

As a conclusion, a landlord should be able to decide what type of property to purchase and where to buy it, as well as how to manage it. A landlord should get himself/herself familiar with landlord tenant laws in Malaysia and know which professionals he/she needs to help him/her.