Property Science deals in Singapore residential, commercial and industrial listings. If you have a room to rent, we would advise you to check online for portals specializing in this segment or even rent through social media.
So what is the process of finding a tenant like? The number one question we get from landlords is:
Our answer is: “It depends”.
As Property Science is not solely specialized in relocation services unlike some property agents (or agencies), we do not always have a ready stream of tenants.
Some human resource departments in larger companies have a contract with these agencies/agents to help any of their new expat staff find suitable accommodation and settle in. Their job scope usually involves:
– Shortlisting suitable properties which match their requirements
– Bringing the tenants to view the selected units
– Negotiation and paperwork
– Assistance and advice during the lease period
These agents primarily serve tenants and co-broke with other listing agents who represent landlords (and help landlords to market their units). In some way, they will have ‘ready tenants’ if their clients’ criteria match the property’s attributes.
Property Science consultants work with all types of clients – sellers, buyers, landlords, agents. These could be corporations or individuals.
However, because we have been in the industry for a number of years, we often get referrals for new tenants through our extensive network. We also have a pool of existing loyal tenants whom we manage and often seek assistance in their next tenancy requirements.
Therefore, in a sense, we may get “ready tenants” if the clients we are serving are a good match for your property.
Waiting for agents to bring their tenants to you, the landlord, means that the commencement date and profile of the potential tenants must match your timeline.
In our line of work, we have encountered landlords who only want us to bring “ready tenants” over instead of actively marketing their property. The truth of the matter is that, serendipitously, sometimes a nice coincidence happens and a match is found. However, 90% of the time, ACTIVE MARKETING is better than waiting for the stars to align.
The typical (and most effective) way is to actively market your property directly to tenants or their agents.
This question can only be answered after we have been given the opportunity to view your property. If it is possible, we would like to visit your property in order to properly describe it and highlight its strong points in our pitch to prospective tenants.
Particularly for vacant units, it may sometimes be necessary or desirable to touch up the interior to make it more attractive. A visit will allow us to offer better advice or do a mini-makeover for your unit.
There are some factors affecting the take-up rate, such as:
Demand and supply always plays a huge influence in how fast your unit will be rented. We advise landlords to keep abreast of the rental market by either reading about the property market or working with active rental agents who are in touch with the changes on the ground. Landlords can keep an eye on the supply of new units through the number of TOP projects. They can also check out how many new expats are entering Singapore on an extended stay.
It is important to be in tune with the market in order to make sound decisions regarding rental offers. In our experience, there have been landlords who have turned away good tenants and come to regret the subsequent vacancy period or even lower offers.
These landlords tend to be:
(a) Landlords who have leased their properties out to the same tenant for many years. The rates may have changed over the years but the rental price had remained the same. Typically, when the property is available again, the landlord may have certain price expectations which is not in line with the market. Moreover, they may have overlooked that the property may need some refreshing and sprucing up to remain competitive.
(b) Landlords who are overseas are not often exposed to local news and may make the mistake of either overpricing or under-pricing their units.
The property’s asking price is the foremost consideration to tenants. We usually advise landlords to survey the asking price in the same condo/neighbourhood/district. This will give them an idea how much their competitors are asking, and how many competitors there are.
We will also supply landlords with a list of past historical data of rental transactions in order to help them achieve a price band. Most units will fall within this band.
CONDITION OF YOUR PROPERTY
If your unit has been beautifully renovated or furnished because it used to be your home, you will be able to command above the price band. This is especially true with older projects that have a large unit size and the majority of the units are in original condition.
There will be other units that won’t be able to command within the price band. These are the rundown units with old fixtures and worn out flooring. We see about 1 in 10-15 units in such state. It will be advisable to spruce these up with fresh paint for an instant perk-me-up.
PROXIMITY TO MRT/TRANSPORT
Accessibility plays a major part in the rental as most tenants do not own cars. If your property is much nearer to a MRT station, there usually will be higher demand than your competition.
FURNISHING AND FIXTURES
Through experience, we have noted that smaller 1-bedder units should be furnished for higher rent-ability. 2 bedders is a 50/50 but tenants looking for larger units above 3 bedrooms usually have their own furniture.
With regards to built-in furniture, we have noticed that these may not suit the taste of the prospective tenants and it may be better to remove them. For example, a study area may have a single bed built-in but the new tenant may want to place a work desk inside. It is advisable to consider requests to remove such carpentry if there is an offer.
Based on the factors above, we will be able to discuss a realistic asking price, check if it needs a mini-makeover, and take photographs for your unit.
We will send over the tenant profile and start date for your consideration before conducting any viewing. Ideally, we are able to find a good tenant who will pay rent on time, maintain frank and open communication with us, as well as take good care of your property.
Once we have accepted an offer, we will prepare the Letter of Intent (LOI) indicating the terms of the tenancy, requests and other conditions. We will then discuss the Tenancy Agreement (TA) with you the landlord first to ensure you are comfortable with the clauses before we forward it to the tenant for their consideration.
We will also ensure that stamp duty, utilities arrangements and other checklists are settled.
The last step is the Inventory List which will be signed during the handover. You, the landlord, have the option whether to be present or not.