Blogs

4 Things You Look Out for When You Look For Tenants

Posted on

Purchased your new piece of rental property and looking for your new tenant? Or is your current tenant moving out and you really need to find a new one? Well, looking for a tenant is one of the hardest things to do when you start investing in rental property.

So here are our top 4 things to look out to when you’re trying to find your perfect tenant for your home.  As a landlord, we are sure that you want to find a good tenant that will be able to not just take care of your house but also to enjoy living at your home responsibly.

Good tenants are definitely out there, you just need to be a bit more stringent when it comes to looking for them.

Tips #1: Find Someone You Trust To List Your Property

In Malaysia, the number one way to do this is to list it with a property agency. A lot of people believe this to be the best and only way to do this because agencies have a lot of connections. They are established in their craft and usually know where to list your property for the best response.

They are also incredibly informed with the current property market and they will be able to assist you in the best way possible with regards to how much you should rent out your property for, what is the best way to publicise it and so much more.

Having a platform or team that you trust is incredibly important when you are looking to rent out your property. This is why BlueDuck is a great place to not just list your property but have a team of experts go the whole nine yards for you. The team at BlueDuck will run thorough checks on each person that wants to rent your space and will do most of the work for you so you don’t have to worry!

Tips #2: Check Their Financials

When you have decided on a few people that you have shortlisted to rent out your property. You and your team of real estate agents should look into their finances. It is a sensitive topic but you will need to know if your future tenants would be able to afford to pay for rent and make payments on time.

A good idea to figuring out if they can afford rent is to make sure that rent is ⅓ of their overall paycheck. This way, you know that the tenant is not only able to pay you on time but to also maintain their quality of life as well.

Tips #3: Decide on A Demographic

When you purchased your property to rent out, you will have chosen it based on multiple things like if they are close to LRT stations or close to colleges. This way you actually decided from the get-go the type of tenant that you are looking to rent to.

If the types of tenant you choose are university students, you will need to be prepared to house students. You might need more tables, more stable internet and a simple kitchen setup as compared to a young family.

Or if you decide that you do not wish to cater to a certain demographic please be mindful and let your agents know in advance so that they know how to angle your property when marketing it out.

Tips #4: Take Your Time

You might be inclined to make a fast decision so that you can get the property out of your hair and rented out. But we have heard so many horror stories from landlords who just said yes to the first person they saw without taking the time to really know more about them.

This is why we suggest taking the time to read through the tenant profiles. BlueDuck puts together an extremely comprehensive tenant profile that allows you to make the best-informed decision with regards to your tenant.

We hope that these tips will help you find the best tenant you can for your property! Do you have anymore tips? Share it with us today! (:

Read More

Worried becoming a Property Owner? Here are 4 TIPS that can help you today!

Posted on

Just bought you first home? Buying your first home as a property investment owner can be extremely daunting if you have no idea what to do next. So many questions might be going through your mind. Like, how do I find a tenant? Should the house be fully-furnished, partially-furnished or completely unfurnished? Will I get a tenant that pays me on time?

These are just the tip of the iceberg questions that you may have when you’ve just purchased your first home for investment purposes. The team here at Blueduck have put together a little handbook or guide to help aid you, new landlords, out there.

Looking for Tenants

This is one of the most important things that you would need to do as a property owner. Looking for someone to rent your place or finding the right family to live in your home is a huge part because they will be the ones responsible for taking care of your property. If you rent it out to irresponsible people, you might be in for a shock at the end of the day.

The common procedure in Malaysia is to usually find a property agent to list your home out for you. They will usually be the ones responsible for putting your home on a listing and will be the ones that will screen through tenants for you. However, over the years, it is known that sometimes property agencies can’t seem to find out everything about a tenant as they don’t usually perform thorough background checks. This can sometimes lead to not-so-great tenants. There have been countless horror stories that we have heard based on bad tenants.

This is why we truly believe that you should screen all tenants properly. If you don’t have the time, you can always enlist the help of platforms like BlueDuck, who are committed to finding the perfect tenants for you. You don’t have to worry about reading countless text messages for their names, occupation, race and etc. BlueDuck will conduct proper screening and share profiles with you that is more through, allowing you to make a better decision.

Get Everything In Writing

While this is not news to anyone, there are times when you make verbal agreements to add something, or fix something or the tenant says that they can only pay at a certain time that is not on the contract. You might think that this isn’t important enough to put that in writing but it can come back and haunt you.

This is also important so that your tenant is protected too. Every little detail needs to be recorded. Always have the full record of your tenant profile as well as the lease agreement that is signed by both parties and has stamp duty as well.

 


Since it is 2020 and we should seriously stop polluting the Earth with more paper, we have made way for e-signing and e-stamping our documents and lease agreements. With BlueDuck, as a landlord, you won’t even need to worry about coming out to meet your new tenant as you can literally sign everything online.

Start saving not only paper, but also your time!

Be Kind To Your Tenants

No one wants to live in a rats nest. Yes, you might not be responsible for making the house look like it was featured in a magazine, but the least you can do is to always make sure that is comfortable. If it’s fully furnished, ensure that everything is in working condition. Also always make sure that the air-conditioning works, the kitchen works, as well as the security being up to date.

Always be available if there is an issue because they are people too and they should be treated respectfully. If someone is making your house a home, you should definitely help when needed. Or if you don’t have time, BlueDuck’s tenant concierge service that will do that for you. We will be on call for your tenants when you don’t have the time.

Always Have A Budget Set Aside

The last tip we have for you is to always have a separate budget set aside for any emergency issues that might happen. Things like your tenant having to move out because of an emergency, a major leak or even a break-in.

Having this emergency fund is extremely important so that it does not bother your own monthly budgeting for the month.

There you have it! Some of our favourite tips about becoming a landlord here in Malaysia. It’s not that hard as long as you know how to look out for yourself and the interests of your new tenants! 

Read More

Tips on Buying Your First Rental Property

Posted on

Growing up, we’ve all been told to invest in property as it’s one of the sure-fire ways to get a passive income when you get older and reach your retirement years. It is true that real estate has made some people very wealthy and it is known to be one of the safest forms of investments.

In a study mentioned in The Sun Daily, almost 92% of Malaysians prefer renting a property compared to purchasing one. So, for those who are looking to purchase a property just for rental, there is a huge renters market out there.

However, there are a lot of things that you might need to consider before going into a huge investment such as this one. Here are some of Blueduck’s best tips those who are planning to be first-time rental property owners.

Tip 1: Are You Even Ready To Be A Landlord?

This is the first question you should definitely ask yourself as it’s a huge undertaking. Being a landlord means that you’re ready to work on improving the house, picking up the phone when your tenant has an issue, plumbing, maintenance and a whole lot more. You can very easily get someone else to do that but you will be spending the money that you will be getting as rental profit. So it will eat into your margins.

There’s a whole lot more to being a landlord than just collecting rent. So, please note that this is something that you definitely need to take into account when you’ve decided to become a property owner and a landlord.

Tip 2: Location, Location, Location

If you’ve decided that rental property ownership is right down your alley, you’ll need to find the right piece of property. In a place like Kuala Lumpur or even Selangor, there are just so many to choose from. From all the way in Ampang to Damansara and to the Golden Triangle of Malaysia there are thousands of properties you can choose from.

Did you know that KL and Selangor record almost 75 percent of all condo sales? This should give you an idea on just how many condos there are just in the Klang Valley alone.

So, when you look for the best place to buy your rental property, you should take into account:

-        Accessibility of the location

-        Availability of public transport

-        Ease to get food and groceries

-        Access to amenities

-        A low crime rate

-        A growing job market

All these little things will definitely add up when a tenant comes and looks at your place. In addition, it will definitely increase the value of your property in the long run which will give you more bang for your buck.

Tip 3: Always Calculate Your Margins

Investing in property is very much just like running a business. You have a capital, which is the money you put in to purchase the house. Then you have your revenue, which is the rent you get from your tenant each month. But, you need to be able to calculate your profit.

Owning a house and collecting rental isn’t a clear cut and simple transaction. You’d need to calculate how much maintenance fees you’re paying, any mortgage you will need to pay for monthly and things like management fees. All of that needs to be calculated before you can have your final profit numbers.

At the end of the day, the choice is yours, but we believe that there are better ways to go about property rental investments. Blueduck, Malaysia’s first flat-fee property management portal is here for you to ensure that you don’t have to worry about all the issues being a landlord.

Blueduck will screen through tenants for you, handle the house viewings and even serve as a concierge for whenever your tenants need you to fix something for them. Click here to learn more about Blueduck today! 




Read More

Top 5 Tips for Tenancy Management

Posted on

Top 5 Tips for Tenancy Management

Tenancy management is a whole different ball-game in comparison to owning real estate investments. You can choose to handle the property on your own, since its only one. But imagine if you have 5 properties across Klang Valley, wouldn’t that be a nightmare?! Though there are many solutions to that, one of the best is still adopting a trusted tenancy management system like BlueDuck where they kaodim all tenancy management related services like screening potential tenants, rent collection, upkeep of the property, insurance and many other matters that may concern your property.

 

1. Choose the right tenants

Finding any tenant is easy but finding the best tenant is a skill, because applications for potential tenants have to be reviewed carefully. Failing at this very first step of the process is perhaps the start of a downfall to a landlord’s investment (Imagine approving a tenant who can’t actually afford your rent. Yes that has happened before!). Luckily BlueDuck has its own screening program to ensure all potential tenants go through credit screening process without discrimination. Afterall, landlords are investors, and they definitely understand the simple logic in how skin colour isn’t able to determine one’s payability. Its time we look at the real numbers, not skin colour!

Vacant properties also fill up faster due to BlueDuck’s simpler decision on accepting the tenant after the background check which takes only 3 working hours after the potential tenants provide all required documentation.

 

2. Ensure tenants pay on time

Dealing with rent is part and parcel of tenancy management. BlueDuck collects rent from tenants on a specific date every month and chases rent on your behalf. They also have a system in place that reminds tenants when the rent due date is approaching.

Also, if a worst-case scenario happens and the tenant defaults on their rental payment in the first month, BlueDuck will notify and start the eviction process in the second month. They will also keep you in the loop on the whole process, cover the cost of it and guide you through legal proceedings. Furthermore, the system will flag it to prevent other landlords from accepting that tenant

 

3. Find trusted contractors to upkeep your property

As much as rent is important, the upkeep of the property is another main part of tenancy management. From simple repairs to regular servicing of appliances like air-conditioning units and water heaters, BlueDuck has a solution to all.

Upkeep keeps your investment healthy. KaoDim is an official partner with BlueDuck to ensure landlords and tenants’ needs are met to keep the property in its best condition.

 

4. Keep track of your tenancy and utilities

BlueDuck cares about your investment, so they have a Tenancy Management System that helps landlords keep track of their tenancies. This system is especially handy when landlords have more than one property.

Toward the end of the tenancy, BlueDuck will remind you two months prior to save time and you can either renew or replace your tenants without delay. The Tenancy Management System helps landlords and property managers to keep track of landlords' tenancies and utilities in a single dashboard on their website. Say goodbye to tedious Excel files!

 

5. Everything is exposed to risk until you get insurance for your home

When dealing with property investments, it is always good to have insurance because you are not there all the time to oversee the property just in case something unfortunate happens. We all have definitely seen news on some irresponsible tenants causing damage to properties which, and sometimes the cost of repair these landlords have to bear cost a fortune! Fortunately, BlueDuck also offers a holistic package that comes with Content & Fire Insurance of up to RM140,000 per annum.

 

Having a holistic plan for your investment properties doesn’t only lift the burden off your shoulders from managing them, it also adds value because of the precautions you take. BlueDuck found that many landlords with multiple properties faced challenges in managing them all at once, especially when something unpleasant happens to their properties. Embracing prop-tech companies like BlueDuck greatly assist landlords with the management of multiple properties through the efficiency and effectiveness of technology. In Malaysia, it is also not new to us when a landlord picks their tenants based on race and religion, which makes zero investment sense because one’s identity is not a credible determinant. Such backward method not only puts landlords investments at risk, but also create severe disharmony among races that may lead to detrimental consequences. To sum it all up, BlueDuck’s cause is for landlords to manage their properties more efficiently while building a better Malaysia, because good values start from home.

 

Lets bring value to your property management experience: www.blueduck.my    


Read More