What comes with renting out your home to tenants? Renting out your home can be a rollercoaster ride of emotions. It is like playing a high-stakes game of Russian roulette but with rent cheques instead of bullets. One wrong spin and you could end up with a tenant who's more trouble than his or her worth. But done right, renting out your home can be a lucrative investment.
Tenants and landlords have their own responsibilities to keep the property habitable. The key to a successful landlord-tenant relationship is clear communication and mutual respect. Landlords must provide a safe and liveable dwelling while tenants must treat the property with care. Unfortunately, throughout the decades amidst murky laws and regulations or maybe even shady sales and purchase agreements (SPA), disputes happen. There always exists concerns regarding tenant behaviours and what falls under their responsibility to maintain as occupants in a rental property.
Although renting out a property in Malaysia has its own diverse set of difficulties, it can also be a very profitable investment. The Malaysia Home Rental Index by IQI reported that for Q12024, the average rent across Malaysia increased by 1.8% to RM1,920. The trend is slated towards increased affordability as the rate of increase declines. In Kuala Lumpur (KL) city itself, rents are up 7.6% compared to 2023, with an average rent of RM2,735.
Priorities before signing
Making sure that their property is well-maintained and that tenants are accountable for their obligations should always be one of a landlord's top priorities. This is their home, after all. As such, landlords can prevent possible disputes and maintain a pleasant rental experience by being aware of the duties that tenants have.
To clearly define the obligations and rights of landlords and tenants, a lease agreement is necessary. It acts as a formal contract that safeguards each party's interests. Important provisions in a lease agreement ought to cover things like utilities, pet policies, security deposits and rent payments. Landlords can reduce miscommunications and conflicts by outlining expectations in clear and straight-to-the-point terms upfront.
To avoid disagreements in the future, it is critical to clarify during the negotiating stage who is responsible for what in terms of house maintenance and repairs. Common residency entitles tenants to perform maintenance tasks such as lightbulb replacement or utility bill payment. A collapsing roof, mould growth and larger appliances are examples of structural issues that fall under the homeowner's purview. The monthly maintenance costs associated with owning a property classified as condominiums or serviced apartments must also be handled by the homeowner.
Tenant problems and responsibilities
In Malaysia, the mischievous behaviour of some tenants truly can be mind-boggling. While some tenants are like the holy grail embodiment of a model citizen, others can be total fruit loops. Landlords must be prepared for the worst and hope for the best.
Rental payments are one of the most frequent issues that landlords deal with. Every month, it serves as a continual reminder that your investment is at risk, almost like a slap in the face. Tenant stress and financial hardship can result from late rent payments. However, one of the most basic tenant responsibilities is to pay rent on time. This is a fundamental part of the landlord-tenant agreement. Tenants who fail to pay rent may face eviction or other legal consequences.
Property damage is another problem. Sometimes, the damage can be expensive to fix, ranging from broken appliances to holes in the walls. Regular cleaning, yard maintenance and minor repairs do wonders. While landlords are responsible for major repairs, tenants should take care of routine upkeep. Fret not, while some tenants appear hellbent on destroying the property, most do treat it like their own.
The problem that is hardest to control is the issue of noise. Neighbours and other tenants residing within the vicinity may suffer from noisy parties, barking pets and persistent stomping. In many cases, tenants like these may just simply not care. To preserve a peaceful living environment, landlords must respond quickly to complaints about noise and have a solution ready.
Tenants are frequently in charge of paying their share of the utilities. It is comparable to dividing the check when going out to eat. This usually covers utilities such as gas, water, electricity and the internet bill. The particular arrangements might change based on the terms of the lease though. For financial matters like this, tenants should comb through the fine print with a lawyer if possible.
It is important to understand any pet-related rules in the rental agreement if a tenant has any pets. Some landlords may prohibit certain breeds, while others may require higher deposits. Having a pet is like having a furry roommate who must follow the rules of the house.
As for pest infestations, landlords are generally in charge of addressing them. However, tenants also have an important part to play in preventing pests from entering the property. Tenants can help reduce the likelihood of infestations by sealing cracks and crevices, keeping the property clean and promptly reporting any signs of pests. These efforts not only benefit the tenants themselves but also help protect the property from potential damage.
In trying to make a quick buck, sometimes subletting goes under a landlord’s nose. It is typically not allowed unless explicitly permitted in the rental agreement. Landlords have to provide written consent before tenants can sublet the property. Subletting can pose potential liability issues for the landlord, as the original tenant may be held responsible for any damage caused or rent not paid by the subtenant. Furthermore, subletting can disrupt the landlord's plans for the property, such as future tenancy arrangements or renovations.
Last but not least, tenants are accountable for returning the property to its original state, nothing taking into account wear and tear. This entails returning any keys or remote controls and fixing any damage the tenant or their visitors may have caused. Leaving the house in a better state than when they first moved in is good social etiquette and helps when applying to rent another unit in the future.
Although it can be a profitable endeavour, renting out your house has its share of difficulties. Landlords can establish a favourable and win-win rental experience by recognising and resolving possible problems with tenant behaviour and the upkeep of the property.
Never forget that the secret to a good landlord-tenant relationship is effective communication and clear expectations. Landlords can reduce conflict and guarantee a positive rental experience for all parties by building a solid foundation and keeping lines of communication open.
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