‘Picking good tenants crucial for landlords’
Despite the high demand in rental market, property owners will not reap long-term benefits without good tenant management, even if the property is easy to rent out, said Superior Wealth Mastery managing partner Alan Poon.
“Although choosing the right property provides the investor with a very good head start, understanding the nitty-gritty of managing his or her investment will make a huge difference in whether the property will turn out to be a good or bad inv e s tment.
“While there have been many real-life tenancy stories of landlords having unpleasant tenants, having a good understanding of what to expect and how to handle various kinds of situations as a landlord is crucial,” he said.
To find and manage tenants, Poon said one could use his “tenancy quadrant” technique, or what he decoded as “P.L.A.N.”
P is for profiling and prospecting tenants, L is for leveraging as a negotiator, A is for mutual agreement and N is for neutralising risks.
“The P and L quadrants provide us good tenants while the more stringent A and N quadrant will differentiate the great tenants from the rest,” he said.
Poon, one of the speakers at the MyRumah property showcase, will speak more on good tenant management today at 4pm.
MyRumah is organised by The New Straits Times Press (Malaysia) Bhd. The first of the four series was held yesterday and will continue until tomorrow.
Poon said demand for homes, especially rental property, will continue to grow over the next 40 years.
“The widening gap between house prices and average income levels translates to increasing rental demand from the domestic population as well as from the growing globally mobile expatriate workforce.”