1. Choosing tenants
- It takes months for me to choose good tenants. Good tenants means I investigate if they have a decent job, former landlord having problems with them or not

2. Motivation to pay early
- Reading Azizi Ali's books help... I give RM50 discount for early rental payment. If you pay before the 1st of every month, you pay RM750. From 1st of the month onwards RM800, after 14th I charge 5% daily rest. *Note: all stated clearly in the agreement

3. Tenancy agreement
I have a personal one and sat down with the tenant to go through clause by clause before he moved in

Is this possible and have you tried execute this clause before?

The reason I asked because the constitution and master law of the country disallowed this. In a property seminar I went, lawyers did explained that if the tenant brings this to court, the landlord is still chargeable because of the existing laws.

Secondly, the lawyer also mentioned a case - if walk in and if tenant said he has RM1million missing from the property then the landlord is considered burglar. Locking them also they can sue you because you deprieve them a place to stay (despite you having an agreement)... The current laws do not favour landlords very much. Worse so if your tenant actually KNOWS the laws.

At this juncture, I can't help but to emphasize that when buying properties we are all taught LOCATION, LOCATION, LOCATION. In being a landlord it is TENANT, TENANT, TENANT.

I would rather leave my property empty in search of ONE good tenant, rather than spend much time, headaches and hassle to go to court, dealing with lawyers etc when things go wrong later.

How I choose (just to share):
1. I ask where he works and how long has he been in the job. I would call the company to find out his salary etc. Better still ask him if he is willing to answer.
Some may find this ridiculous but bear in mind I am letting you a 100k 200k 300k property at only 1k+ per month and since it is a monthly business, I deserve to know. I can't be renting a 1k property to someone making only 2k per month, 50% for rental is ridiculous (assuming he is a single tenant)

2. I do background check by asking where he rents prior to wanting to rent my place, how much was the rental and reasons to move. I will also ask former landlord's phone number. If he hesitate to provide, don't even need to check blacklist listing lor... understood.

3. Prior to entering the house (confirm rental) I walkthrough the house with him, sit down explain my rental agreement clause by clause and ensure he understands before he signs. Many people don't do this and find arguments later

4. To encourage early payment, I give discounts if he pays rental before the 1st of the month.

These are not new tips, these are all learnt from books and attending seminars. Just sharing only.

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Added on December 29, 2011, 10:33 pmEh just found out there is a thread just for laws la... so useful!
http://forum.lowyat.net/topic/2138486


This post has been edited by hoongling: Dec 29 2011, 10:33 PM

There are a few who have started 3+1 or even 2+1.5

Try read The Millionaire Landlord by Azizi Ali, it IS FUN being a millionaire landlord.

Nothing comes easy anyway but once you get a tenant who is good, you will be relieved for over few years. My first tenant in my first property 4 years ago still staying there until now.