How to Rent Out Property Successfully in Malaysia

Renting out property can be challenging for homeowners and property investors. You may have numerous questions: How do you screen a potential tenant? What’s the right rental price? Should you rent out property in an unfurnished, semi-furnished, or fully furnished state?

These questions can make the process overwhelming, especially if you have no prior experience renting out properties. Here are some tips to make the process easier and faster.

Understand the different needs of potential tenants

To quickly rent out a property, you need to understand the type of tenants likely to be interested in your unit. While individual preferences vary, tenant preferences are generally divided into three categories.

Students and young professionals

Students and young professionals who don’t have their own car typically look for places with easy access to public transport, malls, and amenities.

Even if they do have their own cars, they may prefer to save money by utilising public transport. This rings true especially with the availability of the M50 Unlimited Travel Pass which offers 30 days unlimited rides on Rapid KL LRT, RT, Monorail, BRT, Rapid KL bus and MRT feeder bus services in the Klang Valley for only RM50.

Families

Families usually want bigger spaces, safe neighbourhoods, and locations near good schools. Local families usually prefer bringing their own furniture, while expat families are likely to look for fully furnished residences.

Expats

Expats are willing to pay higher prices in premium areas but tend to expect high-end quality furnishings and amenities.

By evaluating your rental property’s location, size, and nearby amenities, you will better understand who your target tenant is and how to make your property attractive to them.

Get your property ready to rent

Once you've identified your target tenant and understand their needs, it's time to prepare your property to appeal to them. Here are some key steps to ensure your property stands out:

Make necessary repairs

Before showing the property, fix anything that needs attention. Check for bathroom leaks, ensure the hot water system and air conditioners function properly, repair any wall damage, and confirm that all lights are in working order.

Clean and ventilate the property

Ensure the entire property is thoroughly cleaned before potential tenants visit. Arrive a few hours before appointments to open windows and ventilate the space, ensuring it feels fresh and welcoming rather than stuffy.

Create a welcoming atmosphere

Consider turning on the air conditioning before potential tenants arrive to ensure a cool environment. Use an air freshener or set up an aromatic diffuser to create a pleasant scent. Even small touches, such as adding synthetic plants, can enhance the visual appeal. Making a positive first impression can significantly impact a tenant's decision.

Ultimately, these preparations can boost your property’s appeal so you can confidently demand higher rental rates from potential tenants.

Furnish your property to match tenant preferences

If you plan to offer units as semi-furnished or fully furnished, consider tailoring the interior decor to suit the preferences of different tenants. Here are some additional tips based on tenant categories:

Students and young professionals

Students and young professionals typically prefer modern and trendy interiors. Including a computer desk, bookshelf, and an office chair in each room can make the space more appealing, especially for those sharing the unit with friends or colleagues.

Families

Local families often bring their furniture, so it’s best to keep the interior decor as neutral as possible. Opt for features like white walls and plain curtains that can easily blend with any style of their existing furnishings.

Expats

Expats tend to favour high-quality furniture and well-designed interior decor. It doesn't need to be luxurious or expensive but should follow a cohesive theme. Additionally, providing essential appliances such as a microwave, oven, washing machine, dryer, and fridge can be more attractive for them.

Research the rental rates of similar properties

Preparing your investment property with the right furnishings and creating an attractive environment is only part of the equation. The other key factor is setting a competitive rental rate attractive to tenants and making your investment worthwhile.

To determine the right rental rate, research property platforms to get an idea of the average rental price for similar properties in your area. Take note that you can charge a higher rental rate the closer you are to LRT or MRT stations, based on the following trends:

• Rental prices can increase by 0.5% or more for every 100 metres closer a property is to an LRT or MRT station.
• Properties within 800 metres of an LRT station can have up to 30% higher rental rate than those located further away.

Screen your tenants effectively

Screening potential tenants is crucial in minimising your risks as a landlord. One effective method for assessing a tenant's financial responsibility is to check their credit score. Services like CTOS provide detailed credit reports that offer insights into a tenant's credit history, including any outstanding debts or defaults.

Protect your legal rights

To safeguard your interests, make sure you have a written tenancy agreement. Avoid relying solely on verbal agreements, even if you’re renting out a property to someone you know.

Verbal agreements can cause confusion, misunderstandings, or disputes that may be difficult to handle. With a written agreement, you can clarify expectations, prevent misunderstandings, and protect the rights of all parties.

Get help from a professional to rent out your property

If you don’t want to handle all of this yourself, you can hire a real estate agent or a property management company.

Real estate agents have broader advertising channels and access to a database of potential tenants, which can make finding renters easier. They assist with screening tenants, conducting property viewings, and handling tenancy agreements.

Additionally, you can tap into their expertise to set a competitive rental price and get advice on making your property more appealing to prospective tenants.

Property management companies offer all the services that real estate agents offer, plus additional support that significantly reduces landlords' workloads. These services include coordinating repairs, collecting rent, and tracking utility bill payments. These companies might be useful if you are based far away from your investment property or hold multiple properties.

Conclusion

Renting out properties requires careful planning and consideration. If you’re handling the process yourself, do your due diligence to make your property competitive and attractive to potential tenants. If you need help, consider hiring a professional to secure a tenant and provide a seamless experience for all parties.

💡 The information provided above is purely for educational purposes.