Do you have properties that you are interested to rent them out? Are you prepared to go onto a property renting journey to earn some extra money for yourself? There are many houses for rent in Shah Alam. If you are planning to rent out your properties, it is more than just getting your property listed. There are a lot more things that you need to commit and take responsibilities in. You need to understand that being a landlord is more than just finding a tenant. This article will guide you through the checklist of responsibilities by being a landlord.
You will need to give your house a clean look by giving it a paint to make your house appear fresh and clean, especially older houses. Normally, it would require around 5 to 30 cans of paints to paint the whole house, depending on the size of house. A good quality paint will cost around RM110 to RM180. If you have the free time and prefer getting job done yourself, you could save on the service fee. If not, you could always engage with professionals and get them to help you with painting service, charged at RM100 a day.
2. Locks and Security System
Do replace locks that are already rusty and old. You will need approximately 4 to 5 locks for the whole house as you will need to lock the sliding door and window grills. It will cost around RM40 to RM200, depending on the quality of locks that you prefer. However, this can be optional as some tenants prefer buying their own locks to prevent unexpected visits from the landlords.
After you paint your house, you will then need to clean up the mess after. You could choose to do it yourself if you have the extra time, but if you do not, you could engage with cleaning service that charges approximately RM15 per hour. You could do your research with the cleaning service available out there to get the best price.
This is for landlord that provides a partially or fully furnished house that includes refrigerator, washing machine, air conditioner and other electrical appliances. As a landlord, you will need to ensure that all electrical appliances are working fine. Do service your electrical appliances before you handover the house to your tenants. Maintenance fees differ according to the type of appliances and service providers.
5. Tenancy Agreement
After you have done with preparing your house, it is time to prepare for a tenancy agreement. Most tenancy agreements follow a standard template, therefore it is very rare there will have a dispute. However, it is still essential to keep both parties informed on their respective responsibilities and roles. Both landlord and tenant have the rights to object any clauses that they think are unfair in the tenancy agreement.
During the lease, there will be some unexpected wear and tear that happen, such as light bulb goes out, leaking faucets and sinks, clogged sinks and so on. Whilst good tenants will just fix the minor problems on his own, you as a landlord bears the responsibilities of fixing major problems.
2. Quit rent & Assessment rate
Do note that the tenants are not responsible to pay both the quit rent and the assessment rate. Quit rent is considered a land tax that you need to pay to the government. Depending on the housing development’s size, it might range from RM70 to RM5,000. As for assessment rate, it is a fee that you will need to pay to the local authority such as MPSJ, MBPJ and DBKL. A property tax of 6% annual rental value will be charged. That being said, it could sum up to RM5,00 or more per year.
3. Lease renewals for leasehold properties
You are responsible for the lease renewals if your property belongs to a leasehold title. Renewals for lease can be expensive and could cost up to quarter of the price of property. During the tenancy, you will have to pay approximately RM1,000 or more for the lease renewals, with condition that you are not allowed to sell your property within a stated locked in period.
Before the tenants leave, it is their responsibilities to keep the house clean and make sure the house looks the same as when the house is handed over. Bear in mind that your house may experience some wears and tears for your furniture or walls. Depending on the condition of your house after the handover, if the wears and tears are severe, you will then need to go through some renovations work such as painting, cleaning and fixing, before you start hunting for your next possible tenants again.
In conclusion, being a landlord renting out your property could be a tedious work and you will experience a repetitive cycle of signing tenancy agreement, renovation and looking out for tenants. Of course, the ideal way to reduce going through this cycle again and again is to have a long term tenancy. Good tenants take good care of the house whereas bad tenants cause problems to your house. However, finding a trustworthy and suitable tenants require both luck and effort. Being a landlord is not an easy job but if you manage to find good tenants, you will be able to enjoy the benefits from your hard work when you receive the monthly rental every month.