There are people who has made a lot of good money by renting out a partitioned unit. There are people who does not want to do much to the unit and just rent it out empty. There are also those who make it look like a hotel and rent it out via AirBnB. What’s your focus when it comes to renting out the unit? Well, for me thus far, it has always been to rent out the unit fully furnished. It started with my first unit which became empty after I moved out to a bigger unit and well, it happened to the units after that too when I moved again. What are my reasons to do so? Read on yeah.
Lower risk. Yes, I personally think its lower risk. If your tenants are not that financially well off, why would he pay extra few hundred Ringgit to rent your place? Assuming its RM400 extra, that’s already an extra of RM1,200 at the beginning. It’s an extra RM4,800 per year! Secondly, if the person is really needing just a place to stay, there is NO need to rent a fully furnished place. Any place, cheap would be just fine. I remember when I was renting a student house previously, the main theme was just ‘cheap.’ The rest will somehow fall into place. It’s still true today.
Better tenant. Seriously, better tenant? Well, my tenant of that RM700 unit remained my tenant until he bought a landed property in Gertak Sanggul in Penang. Nearly 4 years. He has always paid rental on time and when he moved out, I think the apartment was still in one piece. Even the washing machine, LG brand was still working! After 8 years of continuous usage. Thus far, all my tenants have remained friends because all of them have rented for many years. Well, a good homeowner is a plus too. Yes, that’s me. Haha.
Marketplace is smaller. Yes, those who would furnish their units well and renting them out are fewer. So are those who wants to rent fully furnished, these are fewer too. What this meant is that your competition would be lesser even if your target market is also smaller. In this marketplace, there is very little need to negotiate hard. If you need to, there’s something wrong with the tenant, please allow him to rent someone else’s unit. Following is a true conversation with a tenant about 12 years ago in Penang.
Potential tenant: Wah, your place is just so-so but you want to rent out RM700? I have seen a few furnished units for just RM550.
Me: I agree. That’s why if you prefer those units, its best that you take them. I think it would be foolish if those units are similar to mine and you still want to negotiate because the price difference is so huge.
By the way, this is just my personal experience yeah. I know many are earning a lot via AirBnB these days. Continue doing it if it works for you. I have friends who rent out empty units and said that it’s so fast and easy. Well, great for them too. Oh yeah, remember to treat your tenant well too. I always believe good people will meet good people, if you get what I mean. Happy renting one or renting out.
Edited article. First written in July 2015.
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