By Michelle Lim on Jul 10, 2019 2:23:00 PM
For any new home owner, the quest of being a landlord is never really an easy one. From figuring out the basic needs needed to rent out a home to the price you are going to set for the rent. So here is the quick and easy: HOW TO RENT OUT YOUR HOUSE GUIDE!
Why Rent Out And How Much?
The bare basics would always be why are you renting your property and how much are you going to rent it out for?
Some rent out their property for a source of passive income, while for others, it simply may be because they are migrating but still wish to retain their property in the country. Reasons differ from individual to individual. What about you?
If your property is providing similar necessities as other rentals around your area, see if you can do some simple renovations or interior décor changes to make the property more appealing or even hiking up the price for the added furnishings.
If you have ever seen a house staging for real estate agents wanting to sell a property, you will see just how much a simple uplift can increase the value of the house. So, consider investing some extra cash on that for long term returns.
Get An Agent Or Be Your Own Agent?
This is what makes or breaks for any landlord. You have to be sure how you would like your property to be rented out. Agents may help you save the headache of meeting with the prospective tenants and sort out getting your properties' photos and details up online, but they take a cut of the rent too. Additionally, all agents will be honest and may even quote the tenant a higher price to get a better cut.
So, are you willing to take the risk of being misrepresented and getting a bad image if your agent turns out to be an irresponsible one?
"But how do I rent out my house?", you ask. Sure, you can post up your own ads, take your pictures, it just takes a little bit of elbow grease and understanding what tenants look out for. However, how do you check if the tenant can be trusted with your property?
To simplify and aid you with the process, SPEEDHOME is here to take all your worries away. SPEEDHOME does what any agent can do... and more. It allows you to make the right choices and get the best tenants for your property.
From tenant screening and viewing management to putting your property up on the market, all of it is done seamlessly via the super-efficient app - free of charge. You will also be protected with their partnership with Allianz, where you will be covered up to RM26,000 for loss of rental, damages or theft occurring after the tenure.
Basically: no agent fees and no need for screening tenants manually.
All you need is a click of the button.
The next step would be to sort out the tenancy agreement. This is one of the most crucial part of the process, so do ensure that you and your tenant sign it before handing over the keys.
The basic tenancy agreement usually details the conditions required for renting, the duration of rent and so on. It will also usually state the required deposits, monthly payments and utility bills. A tenancy agreement usually lasts for 1 year. After the period stated as per contract, the landlord has the choice whether to allow the tenant to renew the agreement.
Apart from that, the list of available amenities and items will be listed. If any items stated is damaged or missing, the responsibility falls on the tenant onto fixing or replacing the affected items.
It is important to remember that the tenancy agreement is for the benefit of both parties concerned and are irrefutable.
Stamp the agreement
After all the paperwork with the tenancy agreement has been signed by both parties, it needs to be stamped. If it doesn’t get stamped, sorry but that would render the agreement inadmissible in court in the event of disputes.
The legal fees will vary based on the rental cost and duration.
Rough Estimated Legal Fees For Agreement
For the first RM10,000: 25% of the monthly rental
For the first RM90,000: 10% of the monthly rental.
When the rent exceeds RM100,000: Negotiable on the excess. (Usually not more than 10%)
Congratulations! You Are A Landlord!
Done with all the steps? Congratulations, you are a landlord! Time to pass the keys and just remember to pay maintenance and assessment fees along with the other items as per agreement. Don’t forget to declare any extra income that you get from the rent!
If you are overwhelmed and require assistance, SPEEDHOME is here to help you out. All you need to do is step forward and download the app to get the ball rolling.
Your Fast & Easy Home Rental Platform
For a more in-depth look of being a landlord, check out our all-in-one guide here.