Investing in the Singapore property market is a great way to increase your wealth. Real estate in Singapore is constantly evolving so finding an investment in Singapore is a sure way to add value to your property portfolio. The magic of investing in property is that quality rental properties are in constant demand so it won’t take long to find a tenant. This is true for residential and commercial investment properties.
Here’s where it can get itchy. A good tenant will look after your investment property and there will be very little to worry about. These types of tenants pay rent on time and will take care of the property. A bad tenant, on the other hand, needs to be chased for rent and you will feel quite anxious about the state of your property once the tenant vacates the property.
The key to your peace of mind is to make sure you only let quality tenants reside in your investment properties. There are a number of things you can do to protect your investment and finding a good real estate agent to act as your property manager is a crucial element in protecting the integrity of your investment property.
Jimmy Sum Real Estate has the knowledge and expertise to help you find tenants in Singapore, but you can also do some things on your own. Here are some important tips to finding the right tenant for your investment property in Singapore.
Check Your Future Tenant’s History
In most developed countries there is a data base that allows you to do a background check on your potential tenants to ensure they aren’t going to become a real estate nightmare for you. The local real estate agents governing body usually keeps a data base of tenants. The information that is stored in these types of data bases include things like rental payment regularity, how the tenants look after the property while they are renting it, any reports from neighbors as to the behavior of the tenants and how they left the property once they vacated the premises. Make use of this data base to check your tenant’s rental history. If there are a lot of negative reports in their history, it may be better to not allow them access to your property.
A credit check on your tenants is also a good indication of what you can expect from them once they move into your investment property. If they constantly pay their bills late, have had loans denied you may end up feeling like you are facing a battle every time the rent is due. While you’re at it, ask them for their last 3 pay slips. Make sure they aren’t shopping for a rental they clearly can’t afford.
A final check should also include a criminal history. The last thing you want or need is to have a repeat offender in your property and this applies to both commercial and residential investment properties. A criminal history check will detail the crimes in question so you can determine whether or not the infringements are grounds for keeping such a person at a distance.
Ask For References
If you have a Singapore investment property, you want to be sure that the person or business you are renting the property to are reliable and reputable. It’s okay to ask them for references. The references can be from previous landlords, employers or even prominent members of the community. As long as these references can speak to the character of your potential tenants you should be fine.
Meet Your Potential Tenants In Person
You may be more comfortable hiring a jimmy to manage your investment property in Singapore for you, but you still need to feel comfortable with the people you are letting into your property. Your property manager will meet your potential tenants during an interview to determine if they will be quality tenants. Talk about this aspect of finding the right tenant with your real estate agent’s property management department and ask to be present at the interview. Meeting with people face to face is the best way to see how you feel about them and whether or not you will feel comfortable allowing them to inhabit your property.
Commercial Tenants Are The Same As Residential Tenants
If you think a commercial tenant hiring office space is less of a hassle than a residential tenant, you are sadly mistaken. Every business is run by people and the same person who may be a bad residential tenant may be the head of the business wanting to rent your commercial investment property in Singapore. Commercial tenants need to be checked just as thoroughly as residential tenants.
Choose Longer Rental Agreements
If you hate the idea of frequently going through the process of finding the right tenants for your investment property in Singapore, make the terms of the rental agreement available only to long-term tenants. The length of time is up to you but it is perfectly reasonable to ask for six or twelve-month minimum rental periods. Talk to your real estate agent about establishing and preparing a rental agreement that includes all of your specific needs and requirements. you can use this agreement each time you are looking for a tenant.
Don’t Allow Overcrowding
In densely populated cities, tenants are often desperate in their search for adequate housing and a number of unscrupulous landlords will take advantage of these tenants and cram several of them into a single apartment or home. While it is not a problem for one or more tenants to share a residential property, overcrowding puts your property and your tenants in danger. When there are too many people packed into a property, you run the risk of turning what should be a lovely home into a squalid nightmare. As a general rule, you should not allow more than two tenants per bedroom to reside in your property.
You should also be ware of dishonest tenants who may rent your property and then sub-let rooms to multiple other tenants. This can be avoided with a good property manager who performs regular inspections of your poverty. One tell-tale sign is an abundance of mattresses all over the place.
Trust Your Instincts
Investing in real estate property in Singapore is as much about location as it is following your gut instincts. There is a lot you need to know before you start investing in Singapore real estate so do your homework before you sign the contract for your first investment property purchase. It’s also important to know how to find tenants in Singapore. While the process is similar no matter where in the world you are, Singapore is unique in many ways. It is the business hub of Asia and attracts people from all over the world. This is a challenge for landlords and tenants alike. What may have been perfectly acceptable in one city or country may be the opposite in Singapore. Even worse, it may even be illegal so do your homework and follow your instincts.
Get The Right Help And Advice
To navigate your way through all the red tape, laws, and cultural aspects of owning an investment property in Singapore, your safest move is to work closely with a local real estates agent like Jimmy Sum who can show you many great properties for you to invest in, as well as guide you through the process with local knowledge and expertise. You can save yourself a lot of time and money in the long run but, more importantly, you will save yourself from getting in over your head and ending up in a situation that will cause you a lot of unnecessary problems.
