Things to consider before renting out your property / room
Here are six things to keep in mind before taking the rental plunge.

By Balkish Rosly
Converting your house into a rental property can be a lucrative move.
But it’s not all rainbows and sunshine in the rental world.
Much like life itself; there are truckloads of perks and perils to welcoming a tenant into your life.
Worst case scenario, your tenant could be the next Hannibal Lector; Best case scenario, Ryan Gosling or Scarlett Johansson (of course superficially we’re assuming they’re not just good-looking but good housemates too).
Then there are the extra costs that you have to evaluate in regards to the property upkeep.
Here are six things to keep in mind before taking the rental plunge:
Your rent income is taxable
Income tax is a bummer, but a necessity to build a nation. Undeniably, most of us try our best to dig at every nook and cranny for ways to reduce income tax. Although avoiding tax is not the most solid reason to leave your spare house empty and unoccupied, do keep in mind that the monthly rental income you receive is taxable.
However, let’s keep calm and carry on! There are plenty of ‘cheat codes’ to further plummet your yearly income tax. When filing for income tax, do it whole-heartedly and read at every single exemption, relief, and rebate that could save you more.
Good tenants don’t come easily

There are a plethora of websites that could connect tenants to your path for free, but be wary that finding a suitable tenant could be a long waiting game. You don’t just want any tenant – you want a good one: who’ll take care of your house and pay rent on time. To create exposure, there’s a monthly fee that you have to burden if you want your property to appear on the first page of these property websites (minimum RM50 and above for a premium spot).
Even then, it could reach a whole a year (and RM600) before you find a tenant adequate for your place, so there’s no time to pussyfoot around! Don’t only rely on property websites and start campaigning to colleagues, friends, and families about your listing. For the most part, the location of your property plays a major role in attracting a tenant followed by the monthly rental price.
Regardless, there are ways to make your house looks more appealing to property website gawkers. The simplest way is to obviously make sure that the house is clean before the photo snapping starts.
Difficult tenants exist
Well-mannered, has a steady job, and looks normal? An unassuming landlord might eagerly pass the house or room key without much hesitation. However, it pays to be somewhat discerning. Having bad tenants who abuse your property or fail to pay their rent can transform your profit-making scheme into a nightmare.
As rude as it is to view a person with a judgmental eye, a more detailed survey might be required to avoid any losses in future. The most basic procedure is to request for a referee or perhaps a former landlord’s testimonial / contact number before extending your trust and embark on a profitable journey of rental-hood. If you don’t mind coming across a little creepy; potential landlords could also google the person of interest.
You might need home insurance
Depending on the bank, most home owners are equipped with home insurance. For those who don’t, consider purchasing an insurance policy that covers rent. For example, Etiqa insurance covers loss of rent in the event your house is no longer habitable as a result of an insured event for the period necessary for reinstatement.
What to include in your lease

Tenancy agreements are usually quite standard and follow a general template but it’s your house and your perfectly entitled to adjust your terms accordingly. Beyond guidelines for paying rent, you may want to address the following – general conduct, parking ethics, alterations to the property, proper use of plumbing fixtures, pets, guests, maintenance, and the expected condition upon move out.
Costs for maintenance work
Let’s face it, normal wear and tear will happen no matter how wonderful your tenants are at keeping house. The plumbing will soon need a good fixing; the walls will require a fresh coat of paint. With a tenant occupying your room or house, the problems might be greater as they don’t share the emotional bond that you have with the property. Regardless, properties in general are constantly in need of maintenance and attention, and periodically require major and expensive repairs.
In some cases, major repairs will require keeping an apartment vacant for a number of months, and this will cut into your profit margin. Although maintaining a building to a high standard is expensive, it is necessary if you hope to attract quality tenants who are willing to pay higher rents for a nice place to live.
So there you go, keep these in your thoughts as you embark in a profitable rental journey.
Balkish Rosly is an Investigative Journalist of SaveMoney.my, an online consumer advice portal which aims to help Malaysians save money through smart (and most of the time painless) savings in their daily banking, technology, and lifestyle spending habits.
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