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> Property selling around 500K with >RM3k rental?, investment

Bjorn1688
post Feb 11 2019, 05:30 PM

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QUOTE(Takuro82 @ Feb 11 2019, 12:22 PM)
Lol. I having hard time to find a tenant to pay 3000 for my over 700k property.. 2 years just 3 viewing 🤣
Those really don’t care about the rental but more on. amenities. Got turn down due to some they go for more room with higher rental, due to logistic issue and pet issue 🤣
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Just got to be patient.

Don't feel bad on RM700k property difficult to rent for RM3k and 2 years just 3 viewing.

Recently I helped resettle a Norwegian couple and their 2 kids. They had a budget of RM4k, wanted a place that was within walking distance to MKIS, allowed their 2 cats and a dog, they were offering a 3+2.

When I contacted my usual REA, told her the requirements. She said price quite low as asking price for the nearest was closer to RM6k but she would make a few calls. Less than 30 mins later, she said got 3 units all by the same owner we could view today if I had time. All of them I checked on iProperty asking was closer to RM6k I reminded her that their budget is RM4k.

We looked at the units, owner said after the 3rd unit if none were suitable he had 2 more units, one the tenant just left so it wasn't ready for listing and the other only the previous day the contractor had left. We took a look at the other 2 units both were bigger units that rental would be closer to RM7k for a fully furnished unit.

In the end though the couple liked the newly renovated unit they said they were unwilling to pay more than RM4.5k for rental.

As we got to our car, the owner made his pitch, said if I could sign on it that day he would take RM4k for 6 months and then RM4.2k for the remainder of the 3 years lease and on the +2 it would be RM4.5k and have no objections for the pets, also offered 1 month free rent and would give a new sofa that the tenant could pick the colour.

They said wonderful and allowed me to sign for it.

After shaking hands, I remarked he must be a very wealthy fellow to own so many units and could throw the price of rental.

His answer? Those units were making him go broke, the 3 units not had a tenant for 3 years and not even an enquiry for 2 years. The 1 that went vacant was his AirBNB unit and he had a longer term guest there for 6 months and now it is vacant too. The one I signed on, empty for 2 years and not had any enquiries either so he had renovated it to move in himself. In the end he said better to have a tenant that pays 70% of the rental value than to have 100% of a vacant unit. These condos are around RM1.5mil each. Said at least with a tenancy agreement in hand he could get some breathing space.


QUOTE(BEANCOUNTER @ Feb 11 2019, 12:38 PM)
even if you found a tenant, they will only sign 1+1 yr nia….

after 12mths, you need to start the whole search exercise again.

wasting gas.
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Most expats won't even sign a 1+1 unless it has a "free circumstantial release" clause to it in case their contract terminates early.

Bloody pain in the ass to rent to these O&G expats these days.

BEANCOUNTER
post Feb 11 2019, 05:39 PM

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QUOTE(Bjorn1688 @ Feb 11 2019, 05:30 PM)
Just got to be patient.

Don't feel bad on RM700k property difficult to rent for RM3k and 2 years just 3 viewing.

Recently I helped resettle a Norwegian couple and their 2 kids. They had a budget of RM4k, wanted a place that was within walking distance to MKIS, allowed their 2 cats and a dog, they were offering a 3+2.

When I contacted my usual REA, told her the requirements. She said price quite low as asking price for the nearest was closer to RM6k but she would make a few calls. Less than 30 mins later, she said got 3 units all by the same owner we could view today if I had time. All of them I checked on iProperty asking was closer to RM6k I reminded her that their budget is RM4k.

We looked at the units, owner said after the 3rd unit if none were suitable he had 2 more units, one the tenant just left so it wasn't ready for listing and the other only the previous day the contractor had left. We took a look at the other 2 units both were bigger units that rental would be closer to RM7k for a fully furnished unit.

In the end though the couple liked the newly renovated unit they said they were unwilling to pay more than RM4.5k for rental.

As we got to our car, the owner made his pitch, said if I could sign on it that day he would take RM4k for 6 months and then RM4.2k for the remainder of the 3 years lease and on the +2 it would be RM4.5k and have no objections for the pets, also offered 1 month free rent and would give a new sofa that the tenant could pick the colour.

They said wonderful and allowed me to sign for it.

After shaking hands, I remarked he must be a very wealthy fellow to own so many units and could throw the price of rental.

His answer? Those units were making him go broke, the 3 units not had a tenant for 3 years and not even an enquiry for 2 years. The 1 that went vacant was his AirBNB unit and he had a longer term guest there for 6 months and now it is vacant too. The one I signed on, empty for 2 years and not had any enquiries either so he had renovated it to move in himself. In the end he said better to have a tenant that pays 70% of the rental value than to have 100% of a vacant unit. These condos are around RM1.5mil each. Said at least with a tenancy agreement in hand he could get some breathing space.
Most expats won't even sign a 1+1 unless it has a "free circumstantial release" clause to it in case their contract terminates early.

Bloody pain in the ass to rent to these O&G expats these days.
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Not only ong.

It was started by diplomatic corps.....

Now every single so called 'expat" demanded such clause.
Bjorn1688
post Feb 12 2019, 05:19 PM

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QUOTE(BEANCOUNTER @ Feb 11 2019, 05:39 PM)
Not only ong.

It was started by diplomatic corps.....

Now every single so called 'expat" demanded such clause.
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It's still up to you as the landlord whether or not to agree to such a clause and what constitutes an accepted circumstance.

In any case I won't rent to DCs, too damn many bad experiences and won't even rent to these lot even if it is the consulate or embassy that's paying the rent.
naqib0307
post Feb 14 2019, 12:04 PM

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I just remembered this. A friend of mine rented a room while he was working @ subang hi-tech. The owner made partition to be 5 rooms. His room is the smallest and the cheapest @RM700/mth. The other tenants mainly students. Each room got their own electricity consumtion meter.

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