[Guest Post] Is it Worth It To Become A Rental Property Landlord?

Image from online sources, provided by PropertyGuru

Property is one of the most talked about topics in Malaysia right now. At my age, it is not uncommon for youngsters to start planning their future and start saving in order to own a property. Even if we can't own a property, we still have thoughts about renting it out to earn some extra cash. But, how stable is the property market right now? Is it still lucrative to make money via renting out your property? Read this guest post to find out more.

**********

Recent study has proven rental property, as one of the most popular ways of making money in Malaysia especially when renting a home has become the best alternative for many. Just pay attention to the market and you will find that the demand for house for rent in KL is huge. With that being said, there are numerous reasons why becoming a landlord is the way forward. But that doesn’t mean that being a landlord is an easy task. It involves a lot of time and money, but will eventually pay off in the long run. So, is it really worth becoming a rental property landlord in Malaysia?

In this article, I'm going to outline why becoming a landlord is the best option for you as an investor and what are the steps of becoming a good landlord.

Before becoming a rental property landlord, it is important to know and understand what you are getting into. This means that you need to be well versed with the rules and measures of becoming one. You need to do a lot of research on the rental market in your area so as to get a clear picture of the kind of lifestyle people in your area live in, and implement it. You also need to know the current trend in occupancy and rents.

Finding Tenants

There are many ways of finding a good tenant for your property. Internet is one of the easiest ways of acquiring tenants especially when things are easy with the rise of property portal like PropertyGuru. It is way cheaper and doesn't require a lot of time as compared to other means of advertising. Running an ad online will charge you some few bucks, but it is worth your money. Before making any agreement with the tenant, it is always advisable to do a one on one talk with him/her in order to connect and build trust with each other. One of the best ways of acquiring good and honest tenants is by screening your tenants. Doing a background and credit check will increase the chances of getting good tenants. Responsible tenants are easy to manage and work with. They will pay in advance, take care of your properties and won't bring complications during their eviction process.

House Preparation

Becoming a landlord is not as easy as you think. Most of you assume that the income earned from being a landlord is effortless and easy, but in reality its quite the opposite. A landlord faces a lot of trials and tribulations. They are forced to spend many hours and days painting and cleaning their properties before the tenant moves in. This is not an easy task because they have to ensure that the tenant is happy and satisfied with the home. You may find a more comprehensive guide from Realtor on how to prepare your home to be rent ready.

A landlord also needs to value their tenants. Without clients you're not making any income. A tenant needs to be treated with respect and dignity. Ensure that everything is in the perfect condition to avoid problems with your tenants when they move in.

Remodeling Projects and Repairs

A good landlord has to make plans with their tenants to discuss major remodeling projects and repairs. This will save you money in the near future, plus your property value will increase. Landlords need to inform their tenants about their remodeling plans in advance in order to give them adequate time for preparation. Calling for meetings will also help to interact with your customers one on one and know how they're fairing. During the meeting tenants will be given the opportunity to point out their issues to interact with other tenants; in case they didn't.

Handling Your Tenants

This is a very important factor to consider. It is also a difficult task to handle because not all tenants are the same. A good landlord needs to know how to handle different tenants without causing any confusion. Sometimes a landlord is forced to deal with random issues like feuding neighbours, late payments or even theft. A landlord also is required to visit their tenants regularly in order to see how they're fairing and help them resolve their problems.

3 Things You Should Know Before Becoming A Landlord

It's not cheap - Investing in rental homes is not a cheap project. You'll need a lot of capital to start this business. We have seen how banks have tightened their lending standards, which means that you need to have a down payment of about 20%. If you are not able to afford the down payment, then you are possibly not eligible to own a rental property.

You're taking a big risk - Renting a property is not a money-making endeavor as most people think. This is a business that takes a lot of risk that not everyone can handle them. Some landlords have quit this business because of the problems and losses they've encountered. Rental property risks can include; property damage, prolonged vacancies, nonpayment, and even theft.

Bad Things happen - When you're a landlord, not every news is good news to you. Some tenants can be very difficult to handle. Others are there to demand things that are impossible for the landlord to implement, while others can leave behind terrible damages that will cost a lot of time and money to repair.

As a responsible landlord, you'll also need to calculate your expenses and figure out how to cover your expenses and make good profit from your rental property. In case you are too busy o manage your properties, you can consider hiring a professional property manager. You will be required to pay him/her every month to do the hard work for you. A property manager is required to do the dealings and report any problem to the landlord. They also find tenants and hire out repairs.

Conclusion

In order to be a successful landlord, you need to take some time to plan and seek advice from people who are familiar with this business. Seek guidance from qualified financial advisers to help you in budgeting and financing your property. A property advocate will also be of great since he/she is familiar with the laws concerning rental property, and he will be able to guide you on how to handle your tenants the right way.

**********

Never go into a new venture without any research first. It's always best to think twice and consider the pros and cons before delving into something new and important such as being a landlord. Trust me, I've heard many horror stories about tenants from my aunts and uncles, you do NOT want that to happen to you too! I hope this post has helped you to look at rental property from another perspective!