Many months ago when I could still have dinner with good friends, I was at this restaurant with a good friend. Not the best environment but food was good and price was reasonable too. Restoran Hoe Mun Kee PJ Steamed Fish Head (non-halal). Click here for the google map. Food images below. He was sharing about his friend who was angry with his landlord for NOT giving discounts during this COVID-19 period. His friend said that all landlords should understand their tenants and should help the tenants! Landlords are richer than tenants!
Tenants have the upperhand, perhaps.
Ever wondered what may happen to tenants who threaten the landlord with moving out? When landlord asked for proof if the tenant was also in financial trouble and the tenant asked back, “You want to give or don’t want to give? If you don’t want, I will move out.” What can the landlord do if he is faced with such an unreasonable tenant? NOTHING. Absolutely nothing during this COVID-19 period. This is the National Recovery Plan. (click to read)
Everything is however a cycle
However, ever wondered what may happen to tenants who threaten the landlord with moving out must note that property market is always in a cycle. What comes down will go up and a bad day may become a good day next year. Now, a landlord may still continue to rent to an unreasonable tenant because it’s super tough to find a new tenant. However, when the market comes back alive, the landlord will give notice and ask you to move. Remember, they will remember what the tenant did. They will be very willing to take a new tenant when market returns, even if it’s for the same rental amount or slightly lower.
What about an unreasonable and foolish landlord then?
If a landlord knows that his tenant was not doing well. Maybe he has lost his job? If he knows the restaurant was really doing badly. No dining means businesses all go down. If the landlord knows all these but still forced the tenant to pay full rental, then rest assured that if the tenant could, they will move. Once they move, it will be very hard to get back a good tenant, especially if this tenant has always been paying on time. Be good landlords. When they need help, please help them. What goes around comes around. It’s always a cycle.
Landlords always have the long-term advantage
The property price which was paid 10 years ago would be lower than today. It’s caused by inflation. Not necessary because the property has higher value, just higher price. The rental for the property then may be lower but today, it will follow today’s market rate. Someone who bought today or just a few years back may suffer negative returns if they rent at current rental rates.
However, someone who bought 10 years ago could afford to rent lower than today’s rate and they would still be fine. In other words, they could give discounts to the tenants if they were threatened. However it is also true that they have the flexibility to take a new tenant and terminate the current tenant when the opportunity arises.
Be a good landlord and a good tenant. Both are gems.
Fortunately my tenants are good people. I am grateful. I do think they love me as a landlord too. Whenever there are problems to be fixed, I take the urgency route (means I solve as early as possible) versus the delay longer (so that I receive rental first before I get it done).
Good landlord example? When the air-con broke down after 8 years, I bought a new aircon and have it changed versus having it repaired to save money. My tenant was delighted because he thought he would need to be without aircon for a few days. I fixed it within 24 hours. (Of course also depends on availability of the technician to fix the aircon too)
Good tenant example? Tenant called and said the door knob was broken. I apologized and said he could get a locksmith to change it and that he can send me the bill. He did not respond and 2 days later, showed me the door knob has been fixed. He said he bought a new door knob, took out old one and installed the new one. Only RM22 for the new door knob. I told him to minus from the rental but he said, it’s okay, just normal wear and tear. This is a WOW tenant for me.
The purpose of this article is to tell you that if we have a good relationship with our landlords, they would definitely reduce the rental if they know you have pay cut / loss of job. if you are a WOW tenant, everyone loves you. If you are a good landlord, surely your tenant would love you too. Sometimes, good to think why they don’t like you…
However, if the relationship turns sour, just remember that one is known as LANDLORD and the other a tenant.
Love news like this and more? Sign up for daily investment news updates. Alternatively, Follow me on Telegram here.
Please LIKE kopiandproperty.com FB page to get daily updates about the property market beyond kopiandproperty.com articles. Else, follow me on Twitter here.
Sign up for KopiWeekly. (only once per week of property, finance, investment news and more)
Next suggested article: Renting fully furnished has been good for me