Unreasonable Landlord Singapore Edition: Look Out For These 5 Red Flags
April 10, 2023
Renting a place to live in Singapore can be costly, and as a tenant, you want to ensure that your deposit is safe and returned
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As a landlord, getting the most bang for your buck while finding reliable tenants is crucial. Properly screening potential tenants is the key to a successful rental property as it affects your cash flow and overall profitability of your investment. It’s important to keep in mind that the quality of tenants you attract directly impacts your rental income. Therefore, choosing the right tenant is crucial.
In this blogpost, we’ll explore the important red flags landlords need to consider when looking for trustworthy tenants and ensuring they get top rental rates. We’ll cover topics like tenant screening, rental pricing, and effective marketing strategies to attract the right tenant. By doing so, we aim to provide landlords with the necessary insights to choose the right tenants, increase their cash flow, and maintain positive relationships with their tenants for the long term.
When planning to rent out your property, it’s crucial to set the right rental rate. A competitive rental rate can help attract potential tenants and keep your cash flow steady. To determine the right rent, you need to consider several factors such as the location, size, and condition of your property.
You also need to assess the rental rates of similar properties in the area. Take a look at rental listings and past transactions to get an idea of the prices being offered and the lease terms that tenants are willing to agree on.
It’s also important not to overlook the property’s maintenance. A well-maintained property can give you an edge over other landlords and attract tenants who are willing to pay a premium for a well-kept home.
By taking these factors into consideration, you can set the right rental rate, attract the right tenants, and maintain a healthy and profitable rental property.
As a landlord, you want to make a great first impression on your tenants. To achieve this, it’s important to formalize the terms and conditions in your tenancy agreement. This document should clearly outline the responsibilities of both parties, including clauses around rent payments, maintenance requirements, and any restrictions on the use of the property.
It’s important to be transparent and direct about your expectations from the start. This includes outlining any penalties for late rent payments or damages to the property, as well as setting an appropriate security deposit amount.
By staying organized and professional, you can ensure a positive and respectful relationship with your tenants. This can lead to long-term stability and a low turnover rate, providing you with consistent cash flow. Formalizing your tenancy agreement can also protect you legally in the event of any disputes or conflicts. Having everything in writing ensures that both parties are accountable and have a clear understanding of their rights and responsibilities.
By implementing a comprehensive tenancy agreement, you can save yourself time, money, and stress down the line. You can have peace of mind knowing that you have a solid agreement in place, which can help prevent misunderstandings and disputes in the future.
The next step is to set the right rental price to ensure that you provide competitive prices while still earning a reasonable return. This means conducting market research to compare rental rates in the neighborhood, taking into account factors such as location, size, and condition of the property.
Once you have set a competitive rental price, the next step is to create an attractive rental property listing. To do this, you can advertise your property on different platforms, such as real estate websites, social media platforms, and rental listings.
Make sure that your listing includes
In addition to marketing your property on your own, partnering with realtors can also help you attract high-quality tenants. Realtors have access to a wide network of potential tenants who are actively looking for rental properties in your area. This can save you time and effort in searching for tenants, as they can do the hard work for you.
By partnering with the right realtors and creating an attractive rental property listing, you can set your property apart from the competition and attract high-quality tenants that matches your desired profile.
Screening and selecting tenants is a crucial part of the rental process. As a landlord, it is important to find tenants who are responsible, reliable and are capable of paying rent on time. However, it is equally important to ensure that there is no discrimination against any potential tenant based on their race, gender, nationality or any other sensitive characteristics.
Finding tenants can be done through a variety of channels, including advertising the property online, through a realtor or a property management company. Once potential tenants have applied, it is important to carefully observe their behavior and conduct background checks to ensure their suitability.
As a landlord leasing your unit in Singapore, here are some common red flags to look out for to filter out problematic tenants:
Poor Rental History: Checking the rental history of potential tenants is important. If they have a history of late rent payments, property damage or eviction, it could be a warning sign that they may not be reliable tenants. A good way to find out is to search Google on such tenant profile and see if it matches the name online.
Criminal Background: Conducting a simple background check on tenants can help identify any criminal history, such as fraud or property damage. This can be a red flag for potential trouble. One can publicly access to see if they have any existing criminal record in Singapore by accessing the link here.
Inconsistent Information: If a potential tenant is giving inconsistent information or is reluctant to provide information about their themselves or their co-tenants, it could be a red flag that they may have something to hide. Or worse, they intend to use your unit to conduct illegal activities e.g vice, drug smuggling etc.
Poor Communication: If a potential tenant is difficult to communicate with, it could be a red flag that they may be difficult to work with in the future. Good communication is important for a successful tenancy.
A realtor will know what red flags to look out for during the tenant screening process, making it easier for the landlord to select the most appropriate tenant for their rental property. Overall, tenant screening and selection require careful attention to detail and a willingness to put in the necessary work to ensure that the right tenant is found. Taking the time to screen and select tenants can ultimately save landlords time, money and headaches in the long run.
Here are some questions that can help determine if they exhibit the desired traits of a good tenant. Here are some sample questions:
Other potential questions may include:
When seeking an ideal tenant, striking a balance between comprehensive screening and tenant privacy is essential. While it’s understandable that intrusive inquiries might discourage some tenants, it’s important to bear in mind that discovering a communicative tenant who is open to sharing information can greatly assist landlords in making informed decisions. For instance, a tenant who willingly discloses their rental history, employment status, and lifestyle can provide landlords with a clearer understanding of their reliability as a tenant.
Here is a checklist of things you need to have to ensure the rental is legal and problematic free in the long run. Your realtor or property manager can help assist you in this.
Valid Tenancy Agreement: Ensure that the tenancy agreement is legally binding, signed by both parties, and includes all necessary details, such as the rental amount, security deposit, move-in date, and lease term.
Verify Identity: Verify the identity of the tenant, including their full name, NRIC number or passport number, and contact details.
Conduct Background Checks: Conduct a background check on the tenant, including their employment history, rental history, and credit score. You can also request references from previous landlords, employers, or colleagues.
Collect Security Deposit: Collect a security deposit from the tenant before the move-in date. The security deposit should be equivalent to one month’s rent for a lease of less than two years, and two months’ rent for a lease of two years or more.
Provide Inventory List: Provide an inventory list of all the items and fixtures in the rental unit, including their condition, to avoid disputes over damages at the end of the tenancy.
Conduct Move-In Inspection: Conduct a move-in inspection with the tenant to document the condition of the rental unit, and make sure the tenant understands their responsibilities for maintaining the unit.
Follow Legal Requirements: Ensure that the rental agreement and the landlord-tenant relationship complies with all legal requirements under the Singaporean law. For private property homeowners, you need to ensure that you meet adhere to the rules set out by URA here.
Managing tenants and property maintenance can be a daunting task for property owners. It is important to be thorough in the screening process to ensure you select responsible and reliable tenants who will take care of the property.
As a landlord, providing fully-furnished units can be a convenient option for tenants, but it is important to maintain the furniture and equipment to ensure they remain functional and safe to use. Regular inspections can also help identify potential maintenance issues before they escalate into major and costly problems. In situations where the property is far away from the owner or they have other commitments, they may choose to leave it to a property management company or realtor to handle the day-to-day management of their property.
A professional realtor as part of their value added services can help oversee rent payments, maintenance requests from tenants, respond to tenant complaints, and ensure that the building is properly maintained.
It is important to establish clear expectations with the property manager or realtor and regularly communicate to ensure effective management of the property
In conclusion, finding great tenants is crucial when it comes to managing rental properties. Good quality tenants not only ensure that the property is well-maintained, but they also pay rent on time, minimizing any financial stress.
However, with so many potential tenants out there, screening them can be a daunting task. There are no hard and fast rules when it comes to tenant screening, but with the right framework, you can stand a good chance of finding the right tenant for your property.
This is why partnering with a realtor can be advantageous as they have access to a wide network of potential tenants and can help filter out any undesirable ones. By having a professional by your side, you can save time and hassle in the tenant screening process.
By prioritizing quality tenants and partnering with professionals, landlords can ensure their investment properties remain profitable for years to come.
| Website | Pros | Cons |
|---|---|---|
| Carousell | – Free to post – Widely used platform in Singapore – Easy to use | – Limited photos – May not attract serious renters – May attract low-ballers – Potential for scams |
| Gumtree | – Free to post – No commission fees – Good for short-term rentals or finding roommates | – May attract scammers – Limited audience compared to other sites – No ratings or reviews system |
| Craigslist | – Free to post – Widely used globally – Option to remain anonymous | – Limited audience in Singapore – No ratings or reviews system – Potential for scams |
| Facebook Marketplace | – Free to post – Widely used platform in Singapore – Easy to use | – May not attract serious renters – May attract low-ballers – Limited to only 10 photos |
| Facebook Groups | – Free to post – Highly targeted audience – Good for finding specific tenant demographics | – Limited reach compared to other sites – May require approval to join group – Limited to only 10 photos |
| iProperty | – Established website with large audience – Free for first listing – Option to feature listings for higher visibility | – Limited free listings – May require payment for additional features – High competition from other listings |
| 99.co | – Established website with large audience – Easy to use – Good search filters for tenants | – May require payment for additional features – High competition from other listings – Limited photos |
| PropertyGuru | – Established website with large audience – Option to feature listings for higher visibility – Good search filters for tenants | – Requires payment for listings – High competition from other listings – Limited photos |
| SRX Property | – Established website with large audience – Free for first listing – Good search filters for tenants | – May require payment for additional features – High competition from other listings – Limited photos |
| EdgeProp | – Established website with large audience – Option to feature listings for higher visibility – Good search filters for tenants | – May require payment for additional features – High competition from other listings – Limited photos |
In Singapore, it is not uncommon for landlords to include utility bills in the monthly rental payment. However, this is not a legal requirement and may vary depending on the rental agreement between the landlord and the tenant.
It is important for both the landlord and the tenant to discuss and agree upon the terms of the rental agreement before signing it. This includes the payment of utility bills, whether it is included in the monthly rental payment or paid separately by the tenant.
I would conduct a thorough market analysis to determine the current rental rate for similar properties in the area. This would include looking at the location, size, and amenities of the property, as well as the current demand for rental properties in the area. Based on this analysis, I would advise the landlord on a competitive rental rate that would attract potential tenants while ensuring a fair return on investment.
There are several ways to find suitable tenants for a property, such as advertising on online property platforms, engaging a property agent, or leveraging social media channels to reach potential tenants. A professional realtor would advise the landlord on the most effective marketing strategies based on their specific property and target tenant demographic. This may include creating an attractive property listing, conducting open house viewings, and using targeted advertising campaigns to reach potential tenants.
There are no hard and fast rules when it comes to tenant screening. Luck plays a role in having the right tenant too. I would advise the landlord on following my best practices for ensuring that their property is well-maintained by tenants. This may include conducting regular maintenance checks and addressing any issues that arise promptly. I would also advise the landlord to clearly outline the tenant’s obligations for property maintenance and repair in the tenancy agreement to ensure that both parties have a clear understanding of their responsibilities.
As a realtor working in a continuously changing economic landscape, it is increasingly important to advise my clients beyond transactions. Every client’s financial situation is unique, there is no one size fits all solution for every case. As a realtor myself, my job goes beyond transactions, it is important to go beyond my duties and assist my clients to seek the best outcome possible beyond property-related matters.
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Tan Hong Jie, Huttons Asia Pte Ltd
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