Let's look at the most common problem in property rental and see if we can learn from it to avoid the same mistake the most investors do. Probably we can also learn how to survive with the bad decision that we have made.
The root cause of empty rental property would probably due to the "poor location". You're probably attracted by the cheaper price property. But you need to pay price too because the cheaper houses are usually located far away from the crowded area. Unless you're expecting the area to grow, then you probably still can put a bet on it.
If you want to able to rent out your properties 365 days a year, you have to buy properties in areas where there are a lot of jobs, a large variety of jobs. These are usually in a big towns and cities. For example, Klang Valley, Damansara, Subang Jaya, USJ and Penang in Malaysia. This applies to all countries in the world in fact. Too expensive you may ask? Then buy apartment instead of landed property.
The second factor of causing empty rental property is high rentals. It is a common sense when a demand is low and you can't get a business, what will you do? Of course lower your rentals, study your competitors rental fees and set your rental fees probably 5%-10% lower then them. I bet some tenants will start calling you soon. It is still better to let it empty right?
But if I were you, I would find a chance to sell that property and buy another one where located in more crowded area. Having said that, the first step is to lower your rental fees when you soon realize you''re not able to rent out your property. This is to minimize the lost.
p/s: I don't rent out my property yet due to the disagreement from family. Life is challenging (be positive) especially when a decision is no longer can be decided by your own. :)
Sunday, December 02, 2007
No One Wants to Rent Your Property
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12 Comments:
Your current place u mean? If someday, i get to move out and yet no $$ to buy a place.. I will rent urs! hahaha... cos i love the trees there!!! and i like the "dialect-noodle" :D hahaha..
Ya, hopefully by the time I can rent it out to you. I think by the time you want to move out, you already afford to buy a house or maybe to start a new family with your ...
All my houses now are under utilized now which is a very sad thing. Maybe time to have children to fully utilize it. :)
me!me!! me!!!! --> daughter!!
Ok, but still need to pay rent. Give you 5% discount! Hahaha...
Haha, too many properties are not a good choice sometimes, expecially those non-current asserts. I used to hear alot form my friends that they wanna to invest as much as possible in the properties. but now think twice before committed.
I agree. Invest in property is not an easy choice and we really need to think twice before we buy.
Buying property usually drains out all your savings for most of the people. We need to plan well and it is probably one of our major life’s decisions too.
"I don't rent out my property yet due to the disagreement from family."
Hehe. Do you co-own the property with your family? What's the property doing right now?
Kool blog you got here.
Hi thank you. Yes, I own the property with my family. I'm currently staying there during weekdays only.
There is one room is empty and I would prefer to rent it out to generate some income. The reason for not renting out because of the privacy issue. :)
coool! i dont have property.
You will own a property one day. :)
i hope sooo lololol
cost of living in tokyo is super hight thooo.
Ya, I heard of that too. Perhaps you can invest in other country which is more cheaper. :D A lot of Japaneses invest property in my place, Penang, Malaysia. Foresee to see more and more in the future.
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