Renting out property is a great concept for building passive wealth. Not only will you have additional income stream to pay for your next property, it could also fund your retirement or whatever your needs may be.
Before you start to rent out your property, there are some things you should take note of in order to avoid all the stress, unpleasantness and conflicts that could arise later with the tenant.
Whether you are considering to rent out or are a newbie landlord, we at GET.com will share the 3 most important tips with you!
1. Tenant's Right To Quiet Enjoyment
This covenant of quiet enjoyment implies that the landlord will not interfere with a tenant's right of possession, right to privacy and tenant's undisturbed use and quiet enjoyment of the leased premises.
The terms for the covenant of quiet enjoyment are provided for inside the Tenancy Agreement (TA) prepared by your agent.
The tenant must also be informed of any on-going construction, piling work, etc, that could affect their quiet enjoyment before signing of the rental tenancy agreement.
As a landlord, you cannot undertake unannounced periodic inspections of the tenant's premises which can be constituted as a substantial interference with the tenant's right of quiet enjoyment unless it's pre-arranged with the tenant and the frequency for periodic inspection must be also be clearly defined in the tenancy agreement.
Quiet enjoyment also includes the right for privacy, meaning that you as a landlord cannot install remote web camera in the premises to monitor the tenant for whatever reasons like monitoring your items inside the house or any illegal subtenant!
Doing so will otherwise deem to be interfering with the tenant's quiet enjoyment and breach the covenant of quiet enjoyment. Your tenant may even stop paying the rent and terminate the lease for breach of Quiet Enjoyment in the worst case scenario.
2. Emotionally Detaching From Your House After Renting Out
We all know that absence makes the heart grow fonder and it is no wonder when it comes to your beloved property. Getting too emotionally attached to your house actually does more harm than good for you!
You may have fond memories of your house, the time you and your spouse spent together, the kids growing up in the house, the great birthday parties held in the living room and the list goes on and on.
Soon, you will feel stressed out and always want to know what is going on inside your house, whether your house is still clean and tidy, whether the furniture and appliances are still in working order or whether any stuff has gone missing from your house.
You will start to keep calling your agent to arrange for house inspection every now and then that it becomes a disturbance to the tenant.
And when things don't turn out your way during house inspection, you will get real upset and kick up a fuss with the tenant for example over some trivial matters such as the furniture's arrangement and placement of new furniture.
Being emotional doesn't work in your best interest!
When one is emotional, decisions are usually based on emotions rather than reason.
Firstly, try to detach all emotions from your house by removing all the personal items that bring memories to you so as to make it less your home. Secondly, try to view your property as a product that brings income to you. Thirdly, remember that the tenant now has every right for quiet enjoyment.
Being emotionally attached to your property will only work against you by causing unnecessary stress for yourself and come to worse, create friction for yourself and the tenant and worst case scenario the tenant may not want to renew the tenancy agreement after expiry of contract.
3. Treat Your Tenant With Fairness And Respect
After having carefully selected your tenant, remember to treat your tenant with dignity and respect simply because your tenant is your also paymaster!
Your tenant also wants to be treated fairly and be seen as an equal partner in a Tenancy Agreement.
Cultivating a good trusting relationship with your tenant will make you a ‘successful landlord' and when any problem should arise during the tenancy period, they can be resolved quickly and amicably.