
In the last few decades, the city-state of Singapore has transformed itself into one of Southeast Asia’s – and the world’s economic powerhouses. As talented professionals head to the country to continue their careers, the opportunity has arisen for real estate investors to make very attractive returns by renting out condos to them.
Renting out property can be a great way to make a regular income, but it does require some ongoing effort in order to be successful. This short guide explains the keys to that success.
Preparation
“Fail to prepare, prepare to fail,” as the saying goes. That is as true when it comes to buying condos to rent in Singapore as it is anywhere else. The rental market there is highly competitive, and your property needs to be in tip-top condition to compete for high-quality tenants.
This means inspecting the property thoroughly and fixing any issues, even tiny ones like peeling paint. Make sure the water pressure is good, electrical appliances work, and amenities like Wi-Fi work well. You should also have the condo deep cleaned.
Meeting requirements
As a landlord in Singapore, you must comply with local requirements which are designed to protect landlords and tenants. First and foremost though, make sure your property has filed any paperwork it needs to with IRAS, the tax authority of Singapore.
Next, you will need a detailed rental agreement which covers everything you can think of to avoid rental headaches in the future. This includes the rate, duration, and termination conditions of the contract. You are entitled to a security deposit, the standard being a month’s rent for every year on the lease.
Being competitive
Once you’ve got the condo itself and the taxes and regulations covered, you will need to set an attractive price to appeal to decent tenants. It is wise to do some research. Look up properties in your area that are similar in terms of size, amenities, proximity to useful places like shops and public transport. Try to get a feel for the going rate.
Alternatively, a professional property agent will do this for you. They can also help you find effective platforms to advertise your property.
A good relationship with tenants
Chances are you are interested in investing in rental properties as a form of passive income. But for some landlords, the experience ends up being very active. The best ways to avoid this are by attracting quality tenants in the ways discussed above and maintaining a good relationship with them.
A good place to start building that relationship is at the property handover. Helping them document and photograph the property’s condition on that day shows you are committed to avoiding disputes, and explaining things like how to use the appliances or report issues is also helpful. If there are maintenance issues during the tenancy, get the repairs done promptly.
Conclusion
Renting your Singapore property can be an excellent opportunity to earn a steady, passive income. The city is full of ambitious and often wealthy professionals in need of places to stay, but just as you expect quality tenants, they expect a landlord who is prepared, friendly, fair, and helpful too. Following these tips will give you the best chance of success.