‘Pick­ing good ten­ants cru­cial for land­lords’

New Straits Times - - News -

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.”

Alan Poon

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