Juliet Risdon
Juliet Risdon is a Director of JML Property and a property investor.
Having established the company 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.
All property transactions are sizeable when compared with most other decisions.
It follows then that we should give these transactions the extra time and attention that they warrant, but this does not always happen. In many instances it isn’t so much an issue of motivation, but rather not knowing the right questions to ask.
This series deals with key questions we can ask. Knowing the answers to these questions can help to avoid misunderstandings and, in many cases, will save time, money or both.
With the high costs and the potential happiness of your family at stake, it is natural to be concerned that you are both making a good decision and getting value for money.
The trouble is you may find yourself renting a property whilst starting a new job, moving your family to a new country and enrolling the kids in a new school all at the same time.
Of course it is important to do your homework about any potential property you are considering to rent, and with so many things going on you also have to remember to ask your agent the most important questions about the property you are considering.
The list below is in no particular order and is a suggested starting point to help identify which questions to ask.
How safe is it?
This question is often the major concern when people first arrive in Macau. They have heard stories about the dangers of living in Asia, and these stories combined with a natural fear of new environments play havoc with a persons mind.
In terms of crime, you will struggle to find many places safer than Macau. Crimes against the general population are rare, especially those of a violent nature.
However, crimes do happen occasionally of course, so do take the time do a security check.
How secure is the external security door ? Is there a security guard or video surveillance system ? Does the front door feel safe to you…. Is there a deadbolt?
If the apartment is on a low floor is there a cage over the windows ?
These questions are important not just for your peace of mind, but also if you’re getting renter’s insurance, which you SHOULD do (contact your bank and they will be able to help you with a insurance policy).
Am I getting a good deal?
It’s always a good idea to investigate comparative rates in a building.
If the apartment is more expensive or much cheaper than other apartments, it’s better to ask “why” before moving in.
Another factor to look at is how quickly rental rates have gone up or down in the building.
If you like the building and rents have been increasing, you might want to consider a lease longer than two years that contains an increase in years three and four.
By agreeing to a rent increase you can at least have the certainty of staying in the building and apartment you enjoy for the term of the lease.
Can I actually afford this?
Excellent question!
A generally accepted rule is to spend no more than 35 percent of your after-tax income on housing expenses.
If take-home pay is MOP $24,000 a month, that’s MOP $8,400 for rent and utilities.
This becomes a major factor as prices rise, and especially if you are also keeping another house overseas.
People do tend to stretch themselves a little thin and spend more than 35 percent on their housing costs.
It is of course a personal decision, but remember you still have other living costs to cover such as food and utilities.
Am I paying for a whole lot of amenities, and will I really use them?
Apartments offer a wide range of amenities to attract occupants.
The more expensive apartment buildings offer amenities like fitness facilities and pools, whilst other apartments might offer appliances such as washer/dryers and dishwashers in the unit.
Landlords often have to pay more and therefore charge more for these amenities, so it makes sense for potential tenants to consider carefully whether or not they will make use of them.
How much will it cost me to move in?
When you hear the monthly rent you might need to take a seat and catch your breath, but the move-in fees may in some cases cause permanent heart failure !
As a standard requirement, you will need the equivalent of four months rent when moving into a new apartment.
You will be paying for the current month’s rent, and this will either be the ‘pro-rata’ amount if you are moving in midway through the month, or it will be a while month’s rent with the rent due on the moving-in date every month.
You will also need to pay a refundable security deposit usually equal to two months rent that is held by the landlord or representative in case of damages or breakages in the apartment.
Finally you will also be required to pay an Agency Fee / Finders Fee if you are using an agent to find an apartment, and this is usually equal to one month’s rent.
A word of caution here on utilities: Some things may be covered in the rent, others not. Ask if cable TV and trash removal are covered ? The tenants usually pay on a consumption basis for utilities.
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