To property owners eyeing rental income, finding a reliable tenant in a short time is important to maximise rental yield as the longer the property is left empty, the higher the holding cost such as monthly instalments and maintenance fees, for the owner.
According to Ingenious Makeover Sdn Bhd director Thormy Goh, there seems to be an increasing number of property owners who have turned to the rental market because they could not find a buyer for their properties in the secondary market. And based on his experience, well-furnished units are more appealing to tenants.
“Unlike purchasing a property where buyers are price sensitive, tenants would not mind paying a bit more for a unit as long as it meets their daily needs and desire for lifestyle living. To attract such tenants, interior design plays an important part,” says Goh.
He says a well-designed and fully-furnished unit could fetch around 20% higher rental than a bare unit or those with basic furnishing such as ceiling fan and water heater.
EdgeProp.my’s current rental listings showed that a basic furnished unit (built-ups of 1,112 sq ft to 1,202 sq ft) in Pearl Suria at Old Klang Road, Kuala Lumpur, is asking for RM2,000 to RM2,200 a month; while a partially furnished unit’s asking rental ranges between RM2,200 and RM2,600 and a fully-furnished unit is asking for a monthly rental of RM2,600 to RM2,800.
Property makeover company The Makeover Guys Sdn Bhd managing partner Vince Koh recalls his experience as an inexperienced landlord who tried to get higher rental income.
“I was once a property investor looking for short-term gain but realised that speculation was not a sustainable way of investment. Since I couldn’t find the buyer and I was quite tight on cash, I decided to renovate my apartment in Bandar Utama and hoped to rent it out with higher rental to cover my monthly instalment,” he tells EdgeProp.my.