Hi,

I have bought a house from a vendor in Cheras and most probably will get the key on next week.
The vendor(previous owner) would like to rent the house from me for 2-3 mths due to his new house is doing renovation.

The problem is the house rental. According to the property agent , she said the market price for the house rental is RM800.
Now, the previous owner would like to rent the house from us, then the rental is half of the market price , which is only RM400.
Got such a "rules" ???

I need some advise from some expert here. Thanks

there is no such rules for me..since u already buy it so it is yours..he cannot disturb ur property like that..

Yeah, i called my lawyer( actually we shared the same lawywe ), she also tell me the same thing.
She said " If he wants to rent the house from you, the it is 1/2 of the market price, which it their practice, but it is not a "offical law" in the agreement , but it is depends on you and him".

I am worried about this . If I insist to get RM800 per month from him , then I worried he will purposely make the house dirty, or scratch the kitchen cabinet or wardrobe.

This post has been edited by c26: Aug 30 2009, 07:56 PM

hahah..this is scary man..this is one of many disadvantages of sharing the same lawyer.

why would you want to rent it to him? Just say NO, problem solved.

what YOU say in this matter is "The Rule"

Was there a special tenancy agreement clause in your S&P agreement that mentioned about this? If no, then it is better to seperate the house purchase agreement and rental agreement.

Frankly it is not your problem if he needs YOUR house at moment. If the S&P is the only binding contract, the punishment for him staying overstaying is very high.

If the owner wants to stay in your house, you have to find yourself another lawyer and draft out a tenancy agreement.

I'm not planning to move in soon. So, i was thinking of renting the house to the previous owner, better than other ppl that I dont know him/her.
The house's condition is very good. Tats y if i let it to the owner, maybe he'll take care the house.

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Added on August 31, 2009, 12:28 amNope. There is no written tenancy agreement clause in my S&P agreement. Yeah, i knew that if bank already payl the settlement , he must give me the house key in 3 days, if not, he will be punished.

I think you are right, better find another lawyer and draft the tenancy agreement. Coz i feel like the property agent and the lawyer are standing on his side.

This post has been edited by c26: Aug 31 2009, 12:28 AM

Rm400 per month for 3 months = RM1.2k. Is it worth all the trouble? Do you really really know the previous owner since he/she is trying to scam you by telling you its "market price" to pay half the rent.

do u think he will take care of the house?
hell..he already knows it is not their house..not anymore..he is the same as other people who gonna rent ur house..maybe u can give Rm200 less from market rent and it is on ur own "belas kasihan"..he sell the house at market price to u rite..no less rite?they why should ?

try ask other house around the place how much the rent..

This post has been edited by serigala: Aug 31 2009, 08:46 AM

Just chase him out.

You don't have to be nice to everybody.

dun think there is such rules.. mayb u can offer a reasonable price.. if damages r done to the house.. he will hav to pay for it.. i think there is a warranty period of 30days even after he had shifted out the hse.. i might be wrong.. pls do sum askin around..

@TS
you should at least take photos of the place just in case.

you could say no to him outright but it is a gamble which you have to be prepared, i know cause last time when i was chasing the previous owner out he stripped the whole house empty. he took the aircon, ceiling fans, wall lights, furniture, everything that is removable...

i chose to not rent it out to him was because of the tendency of previous owner to think "hey, this is MY house, why should i be paying this new guy the rent to live in MY own property". then he will delay his payment or not pay at all. you get the drift.

it is your choice TS but to rent him at full price of 800rm is still kind of a gamble as you are not going by what he wants. i would say either give him what he wants (400rm) or chase him out immediately.

2cents

Make your life and investment simple.

Go for vacant possession.

Unless you intentionally buy it for investment..but definately not for 3 months tenant.

Bro, short term rental is not very profitable for you. Your lawyer is talking rubbish and trying to screw you. You basically have the advantage here in regards to the renting or not. You should actually think of asking RM1k/month at least as this is a short term rental. The previous owner's got nowhere to go at present...its definitely not easy to find a place to rent at such short notice and for a short term! And if he stays in a hotel, where is he going to put all his furniture? So you see, within limits, you have him by the "balls" so to speak!


cheers,
minolta

This post has been edited by Minolta: Aug 31 2009, 07:36 PM

yeah, very agree with you. I also think of rent the house to him with market value only and never ask for more. Coz I'm not planning to move in soon and can take the rental to cover my monthly installment

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Added on September 1, 2009, 12:00 amYeah, 3 mths only get RM1200, very little. My monthly installment also more than this amount. I have double confirmed with what he told me, I called the property agent, she said "yes, normally is pay half of the market value only"

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Added on September 1, 2009, 12:04 amYeah, there is no such rules. This is what the property agent said , this is " their practice"
Warranty period of 30 days?? I think i need to check with my lawyer. Thanks for reminding me.

This post has been edited by c26: Sep 1 2009, 12:04 AM

in ur case, i dun feel like want to rent to the guy, later he damaged your house. very high risk.

Yes, I took those kitchen cabinet, wardrobe pictures only, But he told me he wont give me the air-cond. But he will leave the wall lights, ceiling fans, alarm system and autogate to me.

Anyway, i will try to discuss with him nex week. Maybe he is influenced by the property agent.

seriously, If I were you, i'll forget it and if you really want to rent it out, find a genuine tenant.

Forget what the property agent, lawyer and the previous owner said, there is not such rule as "Half the market value".

I presume the property agent you are referring to is the previous owner's agent? Dont you see some similarities here? Lawyer, agent and previous owner?

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Added on September 1, 2009, 12:11 amAll these item should be stated in your S&P. Whatever its in the document , you are the new owner of those item. He cant take them back.

This post has been edited by aramis888: Sep 1 2009, 12:11 AM

tell him nicely that you need to move in urgently cause you cant afford paying rental and house loan. tell him you are paying rm1000 for you current rent.

this is the most diplomatic way. if he ask your help, tell him you are forking rm1000 for current rental, if he is sincere he will pay rm900 and ask your help to top the rm100 your self.

no point you show s&p, lawyer talk etc etc cause your new home is at his mercy at moment.

win win

This post has been edited by chamelion: Sep 1 2009, 12:13 AM

Hi,

What you said is logic also. i'm not increase his rental is good for him, now he wants to take advantage from me

Anyway, really appreciate you all for your opinion. Thank you!!

Are the above items listed in the S&P ?

Nope:(

Should I do an tenancy agreement if he wants to rents for 2 months?
How much is the tenancy agreement cost?

This post has been edited by c26: Sep 1 2009, 04:07 PM

after reading your plight-to-be.. i sense that you've quite a gullible person (aka waterfish.. easy to be cheated/con/manipulated)

1. you share same lawyers with your seller?! (did you find out whose side the lawyer is pitching for? you? or the seller?)

sometimes, you may think that the best way is the most convenient way.. less hassle.

but in cases where a lot of money are involved (and also lots of debt too), it pays to do your homework first.. before pulling the trigger.

you're already getting things into motion and now you're wondering what's going on, at mid-flight?

it helps to know exactly your 'vacant possession' clause in your s&p.. that's the day the seller has to leave the property (if a leaseback is not secured)..

when you buy the property, did you also buy all the fixtures that comes with it? or was it sold 'as-is basis' to you? since alot of this minute details are not put into writing.. your best shot is by "trust"

i trust you learn your lesson soon enough and not having to pay alot for learning it. it's good lesson.. it's like flying an aeroplane before taking classes and figuring out all the controls while at mid-air..

i salute your 10-kilo balls.. sir!

yes, you can actually list.. item by item(specifically.. with pictures) as addendum to your s&p..
this are usually done for expensive fixtures (or your seller actually factored in the fixtures/fittings/etc as part of his/her selling strategy to you.. then you need to document down what he/she says in writing)

TS, there's no such thing as "market practice". you are right in seeking 3rd party opinion, and im just curious who's the smart real estate agent who told u this..real con case. BTW, ur s&p should hv a clause to protect ur house from damages..it should be handed in "as is basis". Repair for damages caused would be borned by seller. Taking sufficient photographs of the house conditions helps, and as lwb advised, do an inventory of the items that included in the transaction, with photos as back-up. And the rental rights is up to you alone...you have the final say. Good luck!

This post has been edited by stp: Sep 1 2009, 11:18 PM

Hi,

Thanks for your advise. I think I have learned something now. Everything MUST write in down "Black and White".
That time when I decided to buy this house, he told the agent will give us all the lighting, water heater . But last week when I discussed with him about the rental. I told him , i never heard about 1/2 of the mkt price.Then, i told him, since u are the previous owner and we hope this is "win win" situation, and i asked for only RM650/ Month. Then , he said no problem.

Then, i asked him again, what he will leave to me . Air-cond / heater? he said not decided yet. Ok... If he doesnt want to give me, i also ok coz the air-cond and heater is about 5 yr old.

U know what happended last few days? He sms me asked me to contra the rental with him with he give me 2 air-cond (1.0 & 1.5hp) and 2 heater. I was thinking, why he is like tat one? So cheap !!!!

I replied him, I dont want to contra and I have buy the air-cond with my frens. Haih....


Anyway, very apprecaite the advise that you all gave.

thanks

I think those air-cond and heater which are 5 years old will be consuming more electricity as compared to new units...so in the long run, it will increase ur electricity cost.. which the contra of the rental and heater is a bad idea for you.

On the worry of the current family who staying in that house that u bought, on a 'normal practice' (the word that the your counter party always used), u will receive 3 x the rental (sort of one month rental + two months deposits) on the beginning of the rental. The refund on deposits is depend on you!!

If i am you, I will let him feel your pain (of keep on changing his mind and didn't keep his words as there is no black and white). I will change my mind on the rental that previously ask for and increase it from RM650 to RM800 or above.

i don't think he is being 'cheap'.. in contradiction to what you may think, he's probably manipulating you to the fullest.. see if you're waterfish... if you've agreed to his contra.. he'll probably take the a/c units + water heaters away and sell it off later.. a triple profit(selling profit, rental-cost profit & lelong aka liquidation profit) and that will really make you a 100% bona fide waterfish!

there're wicked people out there, always looking to manipulate and take advantage of others.. be it economically, socially, psychologically, etc.

i hope the lesson you've learnt through this episode(albeit unpleasant) will remain in you for a very long time.. and will help guide you in making good judgment and decision in all your future endeavors..


This post has been edited by lwb: Sep 16 2009, 12:07 AM

Agreed, the buyer didn't protect himself well in this purchase and basically the seller took full advantage and manipulated him all the way. I have never heard of renting at half the market rate (if there is such a rule I would sell my house now and get back my cash then rent for 1/2 price for another 2 yrs while waiting for my new house to be completed). I do hope this is a lesson well learnt by the buyer.