10 Things to look out for when renting out an apartment

(11-12-2012, 05:45 PM)Temperament Wrote:

(11-12-2012, 05:27 PM)mobo Wrote:

(11-12-2012, 03:23 PM)Temperament Wrote:

Quote:mobo Wrote:
10. Tenant Damages – By right, landlords are entitled to seek reimbursements for any damages to the unit or fittings caused by the tenant. But sometimes tenants will play punk and insist they are not to be blamed and argue from all angles. At the end of the day, you might not be able to fully recoup the damages from tenant. I had an idiot tenant family of 5 once. Apparently I do not know what sort of detergent they used, but it badly damaged the parquet flooring resulting in blackened strips and popped out tiles. Tenant refused to pay citing poor finishing and hot weather as reasons. End up we settle by him reimbursing me $500. That was nowhere near enough for me to fix & change the tiles and repolish.

Hi MOBO,

Ah... yes! There is no "free lunch" in this world. Does it helps with every new tenant the landlord make him sign a list of all the major items in the rental property in the conditions as seen with dated photos as backups? In case there are disputes in the future, there are evidence to backup.
i think some landlords advise "to be landlords" to do this with every new tenant. i think there is psychology advantage not only for the landlord but for the new tenant too.
What do you think?
I am still not sure i want to be a landlord but i have to give it a try from 2013 onwards. Then see how it goes........???
NB:
To be fair, if you go and read expat's tenant forum, you will read a lot about unreasonable landlords too. How unfair they treated tenants.
God bless us all!
Shalom.

Hi Temperament,

Yes, it is generally considered good practice to take some photos on important furniture and fittings as well as know faults and have both parties acknowledge before the handing over to the tenant and vice versa. It minimizes the disputes later on. I do that as well.

But the key contention in most tenancy agreements is the clause that say if normal wear & tear landlord pay, if damage not from wear & tear is tenant pay. The problem comes when bad things happen, landlords will attribute to user damage while tenants will claim it’s normal wear & tear. Some circumstances are clear cut, for e.g. children drawing on the wall, one big scratch on a furniture, burn marks at kitchen etc. clearly user damage.

Others are murky like brand new door knob damaged due to frequent slamming of doors, electronic equipment with minor breakage and cracks, torn sofas & beds from suspected children abuse, damaged shower heads that look like it got clubbed, damaged furniture bottoms from too much water used when mopping, stained windows from using inappropriate cleaning agents etc. These are things that if the tenant is reasonable and admit fault, usually can be resolved quite quickly. But there will be people who try to punk around and drag on hoping you will either give up or enter into a compromise. For small amounts that is not worth getting into litigation with, it usually ends in compromise of around 50/50 split on costs. This means additional repair expenses for the landlord.

Indeed, speak with real experience. Very good advice. Litigation is almost always usually not worth it. From what i read it is usually better to settle "privately" when you meet "CHOW KWANG". Or even get nothing when you know you are entitled. i think if i want to survive as a Landlord i have to take your advice.
Shalom.

Usually, the landlord will hold 2 months equivalent of rental proceeds as Security Deposit. In fact, you will find this in all standard tenancy agreements. Should there be costs associated with legitimate restoration costs, it can be deducted from this deposit.

Of course, there are sometimes situations where both tenants and landlords dispute certain claims.

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(11-12-2012, 10:00 PM)koh_52 Wrote:

(11-12-2012, 03:11 PM)brattzz Wrote: Investing in Property is to use the leverage of credit and potiential price appreciation...
Use 20% cash to gain the 100% upside...

Most of the time it works well in SG! :O

"Most of the time it works well in SG"
Yes! this statement apply to most senior folks like me...low entry price , 10 yrs back or 20 yrs ago...forget abt the past, talk present.

Now, land cost is going aro $750 PSF for a 99 yrs LH property, break even cost touching $1,050 PSF.....looking at it rental will soon lagging behind ppty price.

SG average rental yield (2% -2.5%) for FH ppty and (3%-3.5%) for LH ppty, not a good ROI to me.....look outside SG like Philippine, Indonesia & Thailand easily you can get aro 7% return, well there is an exchange risk but it work on both side.

Those senior folks whose ppty are already fully paid is okay to go for rental as passive income...there is no such thing as vacant if you are prepared to drop your rental over market price....

But, nowadays most young smart alex who buy at high price thinking that tenant pay for his installment and after 20 yrs the ppty belong to him, so he can retire with rental income, these people are likely to have their ppty auction by bank.

Invest in property for?
capital appreciation or rental income...10 yr ago you can have both, now no way bro...

Property is an asset class, like any other investments. It is also exposed to economic cycles, like any other asset class.

If you have done your sums and finances prudently, property is still an important asset class to have in one's portfolio. The problem often surfaces when one is looking to make a quick buck by hoping to flip properties. If your intent is to diversify your portfolio in a prudent manner, I hold the view from my personal experience, that property can be a profitable investment. My property investments thus far have centred upon capital appreciation, with rental income subsidising the investment costs in the meantime. However, if you hold your property long enough (usually applicable for landed properties), rental income may be lucrative only if calculated on historical cost. If you were to mark the value of your property to market, its always tempting to sell your property as the rental yields will always seem "too low".

I also take the view that if you believe in the Singapore story, property investment can often be a good hedge agst inflation in the longer term. For added measure, I only buy freehold properties (or 999-year properties) in districts 9 or 10 though some of my friends have made good money from investing in landed properties in Serangoon Gardens due to their relatively lower capital values.

Haha u guys really atas kit. I can only afford to play ikan bilis condos in ocr.

I probably need to buy n sell 10 rounds to make what u do in 1.

(02-09-2013, 01:54 PM)shoeboxlife Wrote: Haha u guys really atas kit. I can only afford to play ikan bilis condos in ocr.

I probably need to buy n sell 10 rounds to make what u do in 1.

My first property investment was a 5-rm HDB flat in Bt Merah many years ago.

It doesn't really matter where, as long as we get started in the right direction.

(02-09-2013, 09:54 PM)whizzard Wrote:

(02-09-2013, 01:54 PM)shoeboxlife Wrote: Haha u guys really atas kit. I can only afford to play ikan bilis condos in ocr.

I probably need to buy n sell 10 rounds to make what u do in 1.

My first property investment was a 5-rm HDB flat in Bt Merah many years ago.

It doesn't really matter where, as long as we get started in the right direction.

Bt Merah is literally a gold mine. Thats why there is Kim Tian rd (金田).

(11-12-2012, 11:32 AM)money Wrote: it is certainly not as easy as i thought. i had the impression that collecting the rental will be the hardest cos quite "embarrassing" to chase for rental if tenant pays late. Now i realise there are at least 10 other things to consider

We can also get the tenant to apply for GIRO/Auto Deduction so that the rental money will be transferred to you automatically each month

http://www.straitstimes.com/breaking-new...ing-row-20

Owner of Harley Davidson motorcycle takes condo to court over parking row

Harley clamped for using car space, but motorcycle space 'too small'

Published on Sep 04, 2013
7:21 AM

Rather than cruising the streets of Singapore, Mr William Ashlock's 1800cc Harley-Davidson has spent the last three months left locked in a wheel clamp at his condo.

The management council of the Metropolitan Condominium took action after he parked that and another large bike in spots meant for cars.

Mr Ashlock claims the bike parking spaces provided are too narrow, as is a gap between a car space and a pillar that is used to access them. He said he was afraid of damaging his bike and other cars if he parked there.

Now the 58-year-old has put his foot down - and taken the matter to court.

Points of conflict

• Mr William Ashlock, who lives at the Metropolitan Condominium in Alexandra View, wants the council to re-mark or relocate the parking spaces for motorcycles and ensure safe access to them.
• The council is contesting his claims and countered that it was adhering to its by-laws passed at a general meeting last year.
  

Not sure whether this troublemaker is a tenant or owner. Should just terminate his lease if tenant.

(04-09-2013, 11:36 AM)kichialo Wrote: http://www.straitstimes.com/breaking-new...ing-row-20

Owner of Harley Davidson motorcycle takes condo to court over parking row

Harley clamped for using car space, but motorcycle space 'too small'

Published on Sep 04, 2013
7:21 AM

Rather than cruising the streets of Singapore, Mr William Ashlock's 1800cc Harley-Davidson has spent the last three months left locked in a wheel clamp at his condo.

The management council of the Metropolitan Condominium took action after he parked that and another large bike in spots meant for cars.

Mr Ashlock claims the bike parking spaces provided are too narrow, as is a gap between a car space and a pillar that is used to access them. He said he was afraid of damaging his bike and other cars if he parked there.

Now the 58-year-old has put his foot down - and taken the matter to court.

Points of conflict

• Mr William Ashlock, who lives at the Metropolitan Condominium in Alexandra View, wants the council to re-mark or relocate the parking spaces for motorcycles and ensure safe access to them.
• The council is contesting his claims and countered that it was adhering to its by-laws passed at a general meeting last year.
  

Not sure whether this troublemaker is a tenant or owner. Should just terminate his lease if tenant.

To be fair,
i am not so sure he is a troublemaker until i am there to verify what he has said. Sometimes i feel Ang Moh society is more equitable in the sense that if you think you are treated unfairly, you can sue without too much "Red Tape".
Anyway, a H.D. motorbike is not cheapo BIKE. Of course Ang Moh treasure it. i will too. Won't you ? That's if you are a bike lover too.

(04-09-2013, 12:17 PM)Temperament Wrote:

(04-09-2013, 11:36 AM)kichialo Wrote: http://www.straitstimes.com/breaking-new...ing-row-20

Owner of Harley Davidson motorcycle takes condo to court over parking row

Harley clamped for using car space, but motorcycle space 'too small'

Published on Sep 04, 2013
7:21 AM

Rather than cruising the streets of Singapore, Mr William Ashlock's 1800cc Harley-Davidson has spent the last three months left locked in a wheel clamp at his condo.

The management council of the Metropolitan Condominium took action after he parked that and another large bike in spots meant for cars.

Mr Ashlock claims the bike parking spaces provided are too narrow, as is a gap between a car space and a pillar that is used to access them. He said he was afraid of damaging his bike and other cars if he parked there.

Now the 58-year-old has put his foot down - and taken the matter to court.

Points of conflict

• Mr William Ashlock, who lives at the Metropolitan Condominium in Alexandra View, wants the council to re-mark or relocate the parking spaces for motorcycles and ensure safe access to them.
• The council is contesting his claims and countered that it was adhering to its by-laws passed at a general meeting last year.
  

Not sure whether this troublemaker is a tenant or owner. Should just terminate his lease if tenant.

To be fair,
i am not so sure he is a troublemaker until i am there to verify what he has said. Sometimes i feel Ang Moh society is more equitable in the sense that if you think you are treated unfairly, you can sue without too much "Red Tape".
Anyway, a H.D. motorbike is not cheapo BIKE. Of course Ang Moh treasure it. i will too. Won't you ? That's if you are a bike lover too.

The by-laws are there for a reason. If he is owner he can always table a motion during AGM to expedite matters. Instead he chooses to ignore the by-laws and take matters into his own hands. To be fair the MCST has little choice but to enforce. In my opinion he is just plain selfish and self-centred .

(04-09-2013, 12:31 PM)kichialo Wrote:

(04-09-2013, 12:17 PM)Temperament Wrote:

(04-09-2013, 11:36 AM)kichialo Wrote: http://www.straitstimes.com/breaking-new...ing-row-20

Owner of Harley Davidson motorcycle takes condo to court over parking row

Harley clamped for using car space, but motorcycle space 'too small'

Published on Sep 04, 2013
7:21 AM

Rather than cruising the streets of Singapore, Mr William Ashlock's 1800cc Harley-Davidson has spent the last three months left locked in a wheel clamp at his condo.

The management council of the Metropolitan Condominium took action after he parked that and another large bike in spots meant for cars.

Mr Ashlock claims the bike parking spaces provided are too narrow, as is a gap between a car space and a pillar that is used to access them. He said he was afraid of damaging his bike and other cars if he parked there.

Now the 58-year-old has put his foot down - and taken the matter to court.

Points of conflict

• Mr William Ashlock, who lives at the Metropolitan Condominium in Alexandra View, wants the council to re-mark or relocate the parking spaces for motorcycles and ensure safe access to them.
• The council is contesting his claims and countered that it was adhering to its by-laws passed at a general meeting last year.
  

Not sure whether this troublemaker is a tenant or owner. Should just terminate his lease if tenant.

To be fair,
i am not so sure he is a troublemaker until i am there to verify what he has said. Sometimes i feel Ang Moh society is more equitable in the sense that if you think you are treated unfairly, you can sue without too much "Red Tape".
Anyway, a H.D. motorbike is not cheapo BIKE. Of course Ang Moh treasure it. i will too. Won't you ? That's if you are a bike lover too.

The by-laws are there for a reason. If he is owner he can always table a motion during AGM to expedite matters. Instead he chooses to ignore the by-laws and take matters into his own hands. To be fair the MCST has little choice but to enforce. In my opinion he is just plain selfish and self-centred .

Well! An ill wind blows that nobody good is always true. Only the lawyer & associates benefit in the end.

Anyway just a heads up. You might want to consider how much different it is to rent out your property with and without furnitures. It goes from unfurnished/semi furnished to fully furnished. My mom got a condo few years back (with loan ofc) and she decided to rent it out partially furnished. The rent is of course different with fully furnished apartment but considering she doesn't live in Singapore it saves a lot of time and effort only to fill in the condo before renting out. I think she managed to rent it out within 1-2 months after we received the key and installed the basics. The tenants have been staying with us for around 5 years now and so far they are pretty good tenants with on time payment and all. Oh and btw they are Singaporeans which might explain why the partially furnished unit is perfect because they have their own stuffs like bedding, tables, sofas, TVs and all.

So I think again it also depends on how much time you can invest on the property investment too before renting it out, not merely on the money. If you have a bit of time to set aside or unused furnitures you could fill for your rented property with, you might be able to benefit from the higher rental price. But it comes with the previously mentioned risk (broken chairs, scratches) that will count to depreciation cost of your whole property investment.

Anyway I wonder why sometimes people decide to rent a unit instead of going for mortgage. I mean, you can treat your own house as investment too and save the trouble of haggling rental price when your contract expires.