Hi Guys,

My first house will be ready end of this month and I've spared some cash for basic renovation, electricity & kitchen works, so that it is ready to be rent, probably in next 2-3 months.

I have a concern here: how do I ensure my future tenant make prompt rental payment to my bank account? Other than the normal check your account& follow up call method? I am not interested to deal with tenant problem with regards to the rental payment, like insufficient fund, need cash to help family, etc.

Is there any better way of doing it? Does legal documentation can help you to deal with tenant who tend to escape from paying you, or you have to go through the hassle of going up& down to court just to solve this problem?

Also, between:

a- students
b- family, or
c- a group of singles who just started their career

which one would you prefer as your tenant?

This post has been edited by bitterbutter: May 21 2008, 09:15 PM

Get the RIGHT tenant then.

Make sure ur tenant is good lo. Check background. Don't take those ah beng types as ur tenants. Working couples maybe? Couples who just get married? Those stable ones. Once u let them move in and they make havoc then you'll have hell of a time. Hehe

The easiest and toughest way is to "select" the "right" tenant like mentioned by Pai.
Even with legal docs and all, you'll need to spend money and time on lawsuits and eviction notices if it really comes to that seriousness.
Also, this is what we call ppl management. Sometimes if we ourself as the owner treats the tenant good in the sense that sometimes cutting some slacks or being attentive to tenants issues and request, we might get something good in return.

As others have already mentioned, the only way is to get the right tenant. You might have to spend more time interviewing the prospective tenant, but it's worthwhile.

You should still have a well drafted tenancy agreement in place, but going through the legal process to enforce it can be a big hassle.

Reason for editing:
For simplicity, I've combined relevant questions inside the first post.

This post has been edited by bitterbutter: May 21 2008, 09:17 PM

Students or group of singles might b my choice...

it's lik hitting a jackpot..sometime u get a good tenant...sometime u get bad tenant.. but spend ur time to interviewing the people...slowly filter out and choose the best candidates..

Anyway...make sure u insist to them tat u really wan them to pay on time...

My pick is either (b) or ©.

Students being students would not have high responsibility towards your property. Likely to be poor in maintaining it. Also in trying to save money, students often tend to get more students to share the place (to keep costs down). So end up having lots in your property (and with more people, more wear and tear).

Never rent your house to students especially when your house is new. My mum is renting hers to a family. So far the payment is good and the house is being well maintained.

I heard you can do standing order order with your tenant? It will automatically deduct from their account. Need some setup cost I think - so you have to bear it.

I just rented out apartment which belongs to my in law to a newly wed couple. So far they are very easy to negotiate

choice b would be the best.
It could be either family or couples. But obviously couples which are pleasant. Reason being they're bound to keep the house in order.
If it's a or c, I wouldn't even renovate the house in the first place. But between choice a and c, I would pick c any other days. so my choice is:

1st - B
2nd - C
3rd - A

hi,

there's no hard-and-fast rule regarding tenants.. (because we're all humans)
however, to mitigate certain risks, you can ask to see financial informations, ask for referrals, talk to their previous landlords, etc.

or you can use a reward-strategy.. sometimes a rm20-50 incentive for prompt payment can work.

no students for me, and kinda agreed that newly weds will usually take care of your properties.

anyones..it's hard to judge a good tenant
just make tenancy agreement and indicate all the T & C

Thought about this as well, one thing that I'm not too sure: does the tenant have the permission to cancel this, esp when they have insufficient fund?

I thought that it is brilliant renting my unit to a single working lady. Hell am I wrong. She never even take care of ANYTHING. When she moved out, I have to deduct her deposits to repair gazillion things such as painting the walls again, cover holes (she nailed the wall to hang clothes!), nose shit behind the door (OMG), etc etc. But the good thing is, she pays promptly.

Well, now the unit is rented to a couple, so far so good and prompt payment. And they take good care of the unit.

Make sure you include a clause in your agreement where the landlord have the right to retain the deposit if there is any mishandling or damages done to the premise

To be honest, sometimes guys can take care of the house better than ladies.
Sure ladies are prompt to be more clean. But at least if there's any fixes, guys are more sturdier in that area. I'm one of those guys...haha
But anyway, working ppl/group might be worst than student. Only comfort is we assume they have the ability to pay and more mature.
Students, we risk them go missing any other days.
Couples or rather...married couples and families are still the wiser choice.

Just add there is also another type of tenant:-

d- Company lease

Leasing to a company surmounts many problems esp. if it's a large reputable organization like DHL/HP etc. Such organizations have steady incomes and are unlikely to have financial problems.

I have colleagues who are staying in company provided housing "Mont Kiara" for nearly a decade already.

Also maintain a cordial and relationship with your tenant. If nothing else, their conscience will guide them in keeping your home safe IMHO.

If the tenants have rented before ask them for past references and talk to their former landlords.

good note.. lease it to exxonmobil for example.

Usually in cases of repairs (minor and major) who bears the costs?