Guide to renting out your property

|| Assalamualaikum ||

بسم الله الرحمن الرحيم

Dengan Nama Allah Yang Maha Pemurah Lagi Maha Mengasihani

Did you buy a property for the purpose of investment? Or do you plan to buy a property for investment purpose? Or do you have empty property and thinking of renting your house out to earn some extra monies? With so many properties in Shah Alam , this article will guide your through the ways in renting out your property.

Before you read further, you ought to know the future of your property’s area. How would it be like in the next few years? What are the possible development plans for the area? Is your property located in a prime area? All these are questions that you should ask yourself before deciding to rent out your property.


1. Reasons for renting out your property

First of all, you need to be very clear on the purpuse of renting out the property. Is renting out your property a way for passive income and to earn extra monies each month? Or is renting out your property a way to facilitate your mortgage repayments? You will need to list down the reasons for renting out your property before getting to the real deal.


2. Rental amount

You will also need to do your research and check the current rental price for the same type of property in the area. Most investors will expect and accept a minimum of 6% for residential properties. The rule of thumb when it comes to deciding your rental amount is: annual rental income / property purchase.


3. Renovation

You as a landlord hold the responsibility of the repairing and maintenance work. Do make sure you follow up with your maintenance or repairing jobs. Get in contact with the service provider to fix things if there is any damage. Be prompt with repairs. A minor renovation is enough to enhance your property and make it appealing for interested renters. Keep your property clean as well because nobody wants to stay in a place that is dirty. Also, you should decide on whether you prefer to rent your property with furniture or without.


4. Real estate agent or do it yourself

Decide if you would like to deal with all the renting processes on your own or you would like to engage with a real estate agent. Of course, if you are busy and do not have any extra time to deal with all the viewings and listing, engaging a real estate agent would be of a good choice. Do note that engaging with a real estate agent will usually involce a month’s rent. However, if you are flexible with your time and prefer doing everything on your own, by all means go ahead and deal with all the listings and paperwork on your own.


5. Tenancy agreement

After you secure a renter,you will then need to prepare a tenancy agreement for both parties to sign on it. A tenancy agreement would usually specify the tenant to pay a two months’ rental in advance as a deposit, a one month’s rental for advance rental and lastly a refundable deposit for utilities that is usually fixed for a month’s rental. In addition, the tenancy agree will also have a list of furnitures, fittings and fixtures that are provided, such as air conditioner and ceiling fans. If anything happens such as there is a damage to the furniture, the responsibility is on the tenant and he or she will then need to bear the cost of replacing the items upon the termination of tenancy agreement. Bear in mind that the tenancy agreement is subject to both parties’ agreement. After the signing, you will need to get the tenancy agreement registered and stamped.


6. Stamping of agreement

It is compulsory to have all the tenancy agreement or lease agreement stamped. The agreement would be inadmissable in the court in any events of conflicts if the tenancy agreement is not stamped. As for the legal fees to get the tenancy agreement stamped, it would depend on the total rent amount collected monthly:

Monthly Rent                    Fees
First RM10,000                    25% of monthly rent
First RM90,000                   10% monthly rent
More than RM100,000    Negotiable but shall not be more than 10%


7. Landlord

After all the above are done, you are now officially a landlord. Remember to keep up with maintenance and follow up with your tenants if there is any damage found. These are a few tips that might help you to become a good landlord when you lease your unit . Being a landlord is one thing, but being a good landlord is another. Being a landlord comes with a lot of requests and demands but it might not be as hard as you imagine it to be.


In conclusion, getting your house ready to be rent is not a difficult task if you follow the above tips. It is actually not a hard job to boost your house rental value in Kuala Lumpur if you follow all these tips. Make some simple improvements to your unit and make your tenants feel like it is more than just a house but a home sweet home. Most importantly, they are mostly low cost. Do however be careful when it comes to the tenancy agreement as you definitely do not want to get caught in any troubles.

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