Real Estate Matters | The most important questions to ask… when you are a landlord renting out a property
Juliet Risdon
If you have not seen the earlier articles on this subject, here is a brief introduction to the series. Of course you can find the articles online on the Macau Daily Times website.
Renting out a property can be both stressful and risky, especially if you are unfortunate enough to encounter a bad tenant.
The trouble is, even though you own the property you are also very busy during the day and want to minimize the issues with this and any other apartment.
If you are looking for an agency to lease out your property and a property administrator to take care of it whilst it rented, it is important to do your homework and look for an established and professional company with strong systems.
The list below is in no particular order, and is intended as a starting point to help identify which questions to ask. This week we look at questions 6-10
What target market am i aiming at?
This question is best asked before buying an investment property, but nevertheless it is better to ask it when you are thinking of renting it out that not to ask it at all.
The property should be appropriately furnished for the target market. If that’s means a family, they will need a washer and a dryer, at least two flat screen TV’s, and don’t put china vases everywhere.
If you are aiming at an executive couple or management level bachelor pad, the apartment will require an entirely different look and feel. The key is to work out the target market with your agent.
Who will the rent be paid to?
Many owners / landlords use a Property administration company like JML to collect rents, and some prefer to collect rents themselves.
As long as this is stated clearly on the contract along with the bank details, it makes no difference to the tenant who the rent is paid to.
Using a property administration company to track rents closely, monitor payments / late payments and conduct the administration process is an advantage if owners are busy or traveling regularly.
How often can we conduct inspections during the tenancy?
Strictly speaking, once the tenancy agreement starts, you can only enter the premises with the permission of the tenant.
This may be difficult to accept for some landlords, but it does of course make a great deal of sense. The tenant does not want someone walking in the front door invading their privacy any more than you do.
Inspections are best conducted before a tenancy agreement is renewed, and should be arranged directly with the tenant prior to signing a new lease so that you can see what sort of condition the property is being kept in.
Once again, if you have a property administration company to represent you, they will do this for you.
How do you handle a tenant who does not pay rent on time?
Rental payment is a sensitive issue, and the most important point to be absolutely clear about what is expected.
As there are weekends and public holidays, it follows that its possible to have a holiday period that starts Fri 1st and ends on Mon 4th, so we always say that rent is due on the 1st and late if it has not arrived by the 5th.
You can include penalties for late payment, and note the government allow you to charge 50 percent of the rent as a penalty if the rent is nine or more days late, and 100 percent of the rent if you are 30 days or more late.
Do i want to sell the apartment within the next 2 years
Selling the apartment whilst it is rented is not as easy as selling it when it is vacant.
To enter the apartment, you will require the permission of the tenant, and entering into someone’s home with an entourage of people is never a good idea.
If you are thinking about selling the apartment, let the tenant know before they sign the two-year tenancy agreement and ask them if you can have a gentlemen’s agreement to bring people to view the apartment provided it does not exceed once per week.
This will also help you figure motivated buyers from people who are just browsing.
Juliet Risdon is a Director of JML Property and a property investor.
Having been established in 1994, JML Property offers investment property & homes. It specializes in managing properties for owners and investors, and providing attractive and comfortable homes for tenants.
www.JMLProperty.com
info@JMLProperty.com
