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4 Tips To Avoid Rental Vacancy In Singapore
We Singaporeans are lucky to be the top 4th in the world when it comes to home ownership. A combination of economic prosperity and parental support have led to a growing number of HDB upgraders who are able to buy a condo, while still retaining their HDB.
That means more people are now having the opportunity to rent out their HDBs or condos to make extra income. Even the government has encouraged renting out of rooms as a way for the elderly to generate passive income!
So while the Singapore property market has been sluggish since last year, there are ways to make your rooms attractive to people looking to rent.
Typically, owners of small rental properties go through the 'standard procedures' to find tenants – they run an advertisement on the many rental portals you find in Singapore or go through a property agent.
This is fine in a hot rental market, but if you want to avoid vacancy and waiting too long to get a tenant, you will need to do more.
We at GET.com share four tips with you that can help keep those rooms occupied!
1. Adopt A Flexible Rental Contract
You will find that in a tenants' market, potential tenants will ask for the shorter lease in order to take advantage of future falling rates. If you only want to stick to a two-year contract, you are losing out on the potential income while sticking with the rental rate you want.
Making a $100 less a month for 12 months ($1,200) is still better compared to waiting out 2 months of vacant room at $1,200 a month.
2. Find Alternatives To Agents
If you are not looking for an agent's services where they typically take a month of your rent as commission, spread the word among your friends and relatives and offer incentives to them.
Perhaps a 10% commission on the first month's rent?
3. Be Less Choosy About Your 'Ideal' Roommate
You may think that it's preferable to rent out your room or apartment to someone local or someone who is single instead of someone who is married with kids. In the current market, being picky isn't ideal, unless you really don't mind waiting for the 'perfect' tenant.
Instead of only wanting to rent to a certain profile, be open! That initial stranger could always turn out to be your next best friend!
4. Be More Receptive To Requests
Every tenant will have their set of priorities; some want to be able to cook everyday, ask for cleaning services or request for a new dressing table. When it comes to a competitive market, adding small bonuses or being more friendly could eventually help you clinch the deal.
Especially in new properties, you may find that there are many available units going for similar prices and a key differentiating factor is the furnishing of the house. So see these as investments of your own property. It's a small cost compared to the opportunity cost of lost rental.
The list above might be short but it should give you some edge above others looking to rent out their rooms as well. Use it as a reference to create a longer list and test the ideas and see which ones give you the best results. By going through this process you should fill your vacancies faster than before!
This article was originally on the GET.com blog at: 4 Tips To Avoid Rental Vacancy In Singapore.
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