So you’ve decided to move out of your old house and let new tenants take over. Homeowners often decide to do this if they go for a trip or simply because they need a little extra income every month.
Renting out your house to unknown people comes with a lot of risk. Reduce this risk by adhering to the following tips before giving up the keys:
Perform Background Checks
Background checks are essential if you plan on finding a tenant that won’t trash your property or won’t pay the rent on time.
A good way to see what type of potential tenant you’re dealing with is to talk to previous landlords, family members, employers and friends. Individuals who have spent a significant amount of time with your potential tenant will be the best judges of character and may even tell you something that normal background checks leave out.
Perform background checks with various government agencies to determine whether or not your potential tenant has a criminal history. If they do, it may be best to stay away from them.
Sign a lease
Signing the lease is the most important part of the move-in process. A lease will protect you in cases of non-payment, destruction of property and unauthorized household members that won’t leave. Your Malaysia property will be protected when you sign a lease, especially in cases of long-term tenants.
Hold a Deposit
Regardless of whether or not you plan on renting to long-term or short-term tenants, a deposit is absolutely necessary.
Security deposits guarantee that you’ll be compensated for any loss of property, nonpayment of rent or other events that may cause a financial loss. When collecting a deposit, make sure to do so before the tenant moves into your Malaysia property.
Estimate a Fair Rent Price
The amount you charge for rent may be the one determining factor in whether or not you attract quality tenants.
Perform extensive property market research on similar properties that are on the market in your neighborhood and take into account the amenities that each one offers. A price that’s set too high will discourage people from even taking a look at your house while a price that’s set too low will net you little income in the end.
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