In times of economic uncertainty and a likelihood of a recession in the coming months, most Malaysians, just like yourselves, are trying to safeguard their finances. The expert advice has always been to diversify one’s investment portfolio, and what is safer, more stable than to invest in property?
One of the main concerns with investing in property is that it’s a high-cost investment, with a monthly commitment that isn’t necessarily the easiest to fulfill. The obvious solution? Rent it out!
Easier said than done.
At the moment, there’s a glut of property in the Malaysian market and not enough tenants or buyers. Landlords are more desperate in getting a tenant while tenants have lots to choose from. Hence, landlords will tend to make hasty or risky decisions and just accept the next guy who walks in, not realizing the trouble it will bring to remove a tenant from hell.
So what can you, as a prospective landlord, do to ensure that your tenants are those less prone to creating awful news headlines?
The rule of law rules
While there are no tenancy laws in Malaysia, a major legal tool at your disposal is a tenancy agreement. In it, you establish key details such as:
- Monthly rental payment
- Security deposit
- The details of both landlord and tenant for accountability in the event of any problems
- Special requirements
- Lease period
- Mode of payment
While Malaysia’s leasing laws are pro-tenant, a contract still stands in a court of law and can go a long way in ensuring you have a fallback in black-and-white.
Limit the number of tenants
As the landlord, you may be selective in your prospective tenant, and this applies to the number of tenants you feel comfortable leasing to. While discriminating against race, gender and religion is just wrong (and also pretty awful of you as a person), there is nothing wrong against specifying the number of tenants allowed in your property. Managing this expectation means that there will be better control over the maintenance of your property and its facilities, as well as your mental wellbeing.
Make a list, check it twice
Look, we all understand that there is only so much you can assume from meeting a prospective tenant in person, or from stalking their social media. Tenancy also covers more than just their character – it includes removing all potential risks that will jeopardize your property, not to mention your peace of mind. Among the things to consider are:
- Current occupation and income level
- History of tenancy
- Past criminal records
- Key financial information
Thankfully for everyone involved, there is a simple screening process available to the public. For a nominal fee, Verity Plus Online offers background screening services that are customisable based on the level of information needed, affordable, and quick. Explore the screening service for you at https://www.verityplusonline.com/.
“At Verity Intelligence, our entire process complies with the Malaysian Personal Data Protection Act as we are very serious about regulatory compliance and respecting the privacy of individuals. The information we obtain, screen or verify from is also publicly and legally available.”