Renting - Hartamas Real Estate

Pros And Cons Living In A Studio Apartment

hartamasre — Wed, 22 Nov 2023 02:20:13 +0000

A studio apartment is a compact home that has a living room, kitchen, and bedroom all in one space. When on a tight budget, studio can be a good choice for young working adults and students who value seclusion.

However, it’s crucial to understand the studio apartment’s spatial characteristics and whether it’s a wise decision before choosing one because living in a studio apartment definitely has its perks and drawbacks.

On the positive side, you can’t beat the lower price and more affordable rent compared to bigger apartments. It’s a great option for individuals who are flying solo or on a tight budget.

Another advantage is that everything is combined into one open space. This compact layout can be convenient for those who prefer city living and want to be close to all the action.

On the downsides, storage space can be limited in a studio apartment, which means you may need to get creative with organisation solutions. It’s important to make the most of every inch of available space.

Furthermore, hosting friends and family can be challenging due to the limited space available. While cozy gatherings can still be enjoyable, large gatherings might not be feasible in such tight quarters.

In this article, we are listing down the top three pros and cons each of living in a studio apartment to help you make better decision of living compact in the city, or a bigger space outside the city.

Pros of living in studio apartment:

1. Affordability – Due to their smaller size, the selling price and rent for studio apartments are typically lower than one-bedroom apartments in the same neighborhood. You’ll also save money on utilities bills because of the smaller unit size.

1. Convenience – Studio apartments are often strategically located in prime areas, making it easier to access amenities and transportation options. The convenience factor cannot be overlooked when you’re living in a bustling city.

1. Privacy – Many tenants are faced with the decision of renting an apartment alone or sharing one with roommates. You usually receive extra space when you live with roommates, but you also give up privacy hence, renting a studio apartment allowed you to have your own space and the flexibility to do as you like.

Cons of living in studio apartment:

1. Storage – A lot of people discover that a studio apartment just cannot accommodate their
  possessions. The lack of storage space in most can make you feel claustrophobic
  and overburdened.

1. Entertaining – You could find it difficult to socialize at a studio if you’re an outgoing person
  at home. Cozy get-togethers can still be fun, but throwing a big party might
  not be doable in such close quarters.

1. Simple but boring – A studio apartment does not have much scope for decoration with fancy furniture and knick-knacks since they crowd up the small space. For those who appreciate elaborate interior spaces, these may not be a satisfactory option.

[Image source: FilippoBacci | Getty Images]

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The post Pros And Cons Living In A Studio Apartment first appeared on Hartamas Real Estate.

Do You Need Landlord Insurance?

hartamasre — Mon, 15 May 2023 06:21:04 +0000

In 2021, the Malaysia Institute of Estate Agents (MIEA) has introduced MIEA Landlord Insurance to protect residential property owners from financial losses incurred by problematic tenants, such as runaway tenants, rent arrears and damages to their assets.

Under the policy, policyholders will be compensated if they met the following circumstances:

Loss of rental income due to tenant runaway
Legal expenses for Letter of Demand
Loss or damages due to malicious acts by tenant
Cleaning service cost incurred when contents of premises are destroyed or damaged by tenants
Repairing or replacing doors, locks, access card and keys
Replacement of structures made of glass materials, including shower doors and windows
Maintenance services such as plumbing, drainage, air-con and toilet repair
Losses due to theft or burglary committed by tenants

Similar to other landlord insurances in the market, to be eligible for this policy, the landlord must possess a valid tenancy agreement with a signed term of more than 12 months, while the tenants will also be checked for records of bankruptcy or eviction in the past five years.

While landlord insurance is not something new in the market, it is not a compulsory commitment for a landlord hence it has always been mistakenly not an important investment, be it for personal gain, nor the entire property industry.

However, with the launch of the MIEA Landlord Insurance, it has once again highlighted to the public that landlord insurance will not only benefit the landlord, it also protects the public and provide an environment for professional real estate agents to be competitive in enhancing their services, which will eventually benefit the entire property rental market.

Now, you may ask why I should get landlord insurance, isn’t there a tenancy agreement to protect a landlord? In fact, a tenancy agreement can actually only go so far and do so much because it mainly outlines the duties and obligations of each party during the tenancy period, as well as to prevent the landlord from raising the rental fee indiscriminately within the rental period.

Here is how landlord insurance can protect you from losses during the tenancy period:

Losses occur during tenancy period
Besides the rental losses when your tenant runaways, other unfortunate incidents that cause losses will be covered under a landlord insurance too, such as the property being damaged by natural disasters such as storm and flood, which caused your unit is uninhabitable for some time, or the financial loss when your tenant runaway with some of the items belong to your partly and furnished property.

Malicious damage
Either malicious or as an act of vandalism that was done by your tenant, and your tenant is not prepared to pay to have the damage remedied, you can claim for your financial loss through appropriate insurance. Apart from that, a landlord insurance also offers to cover the reasonable property maintenance cost, such as burst pipes, break-ins that damage the door lock, among others.

Public liability
This is the most important benefit, especially when it comes to commercial properties. Under the insurance, it insures you against an injury or death that occurs on your property, and the tenant or a visitor who is injured on your property decides to take legal action against you. The policy also provides additional cover for legal expenses that are incurred in remedying an issue with a tenant, such as legal costs for a letter of demand.

[Image source: Image by jcomp]

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The post Do You Need Landlord Insurance? first appeared on Hartamas Real Estate.

Buying Into Education Townships

hartamasre — Mon, 06 Mar 2023 06:01:03 +0000

Benjamin Franklin once said that an investment in knowledge pays the best interest. Buying properties near education amenities has always had its up, tapping into the demands for rentals by students coming out of state. For instance, a favorite of college students – Wangsa Maju and Setapak in Kuala Lumpur, have always enjoyed good rental yields of 4% to 6%. This is no surprise, given their proximity to numerous education institutes like the Tunku Abdul Rahman University College, Institute of Childhood Education-Studies & Community Education, VTAR Institute, Malaysian Institute of Art and Dasein Academy of Art.

Another student-populated township is Bandar Sunway, housing universities such as INTI International University, Taylors University, Sunway University, The One Academy, Monash University and SEGI University.

Down south, Johor is poised to be the new education hub in Malaysia. According to the government-managed Invest Johor website, significant projects in this sector include EduCity, Bandar Seri Alam City of Knowledge and Pagoh University City, which house internationally renowned campuses from prestigious educational institutions.

However, when the Covid-19 outbreak in 2019/2020, in a departure from what used to be normal, students have had to switch to online classes. Physical activities have ground to a halt. Nonetheless, as the economy opens up and activities have started picking up, it is safe to say that demands have also made a come back.

Pros and cons of renting to students

Renting to students have its pros, being less fussy, they do not require the most modern appliances or nice decor compared with working adults or more matured tenants. This is an advantage for the owners as they get to save money on furniture, fittings and fixtures.

Not only that, a landlord would have a possibly easier time to look for tenants, as educational institutions will give property owners the additional advantage to advertise through student bodies or organisations instead of through paid advertising means or having to go through property agents to secure student tenants.

However, one should also note that a major challenge landlords face when renting to student tenants is late payment of rent. It is also not unusual to encounter problematic tenants who move out of the unit without any notification. There are also those who take it upon themselves to “refurbish” the unit without letting the landlord know.

Some steps to minimise the risk of renting to students would be to tailor their leasing terms to include clauses such as noise, maximum occupancy of the unit and damages or repairs that should be considered.

It is also recommended that the parents should be co-signees to the Tenancy Agreement so that someone other than the student is aware and responsible for prompt monthly repayments and damages.

[Image source: Photo by Pixabay from Pexels]

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What Should You Do If Your Tenant Damages Your Property?

hartamasre — Mon, 20 Feb 2023 02:25:07 +0000

As a landlord, it is important to protect your rental property from tenants who could cause damage or disruption to your asset. Taking the necessary steps to prevent such nightmare scenarios is essential to ensure that you can maximize your return on investment. One of the most important steps you can take is to create a comprehensive tenancy agreement that sets out clear rules and expectations for tenants.

A comprehensive tenancy agreement should include details about how rent payments will be made, any restrictions on pets or smoking, and what constitutes acceptable behavior on the property. Additionally, landlords should also consider other measures such as conducting background checks and requiring security deposits to further protect their rental property from bad tenants.

In the last article, we talked about different ways landlords can protect their rental properties from damage caused by bad tenants, as well as how landlords can prevent nightmare tenants from taking advantage of them through the use of tenancy agreements and other security measures.

However, even with all these preventative measures, there is still a chance that the tenant may damage the property during their stay. Therefore, landlords must know what steps they can take if their rental property was damaged by tenants.

1. Check who caused the damage

The first step is to confirm who caused the damage and how serious the damage is. This will help you determine what kind of action needs to be taken. You can then assess whether or not the tenant should be held liable for any costs associated with repairing or replacing the damaged items.

2. Conduct an official inspection

During the inspection, it is best to bring along a witness, or a professional building inspector for a quotation of repair if the damage is major. Record down the damages you discover by taking photos or videos as it will be important evidence if you need to file a police report on the damage and destruction.

3. Issue a quotation

Issue a quotation to the tenant so that they are aware of the costs associated with repairing or replacing any damaged items. However, if the tenant wishes to seek an independent quote from their contractor, this should be permitted. It is worth noting that if the damage to the property is so substantial that the house is no longer habitable until it is repaired, the landlord can also seek compensation for loss of rental income.

You may wonder what happens if the tenant refuses to pay for damages. This is where the evidence comes in to help with the legal process. Alternatively, the repair cost could be taken from their security deposit, but only if you are 100% sure that the damages were caused by the tenant, and you have discussed this with the tenant upfront.

[Image source: Photo by Erik Mclean from Pexels]

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Keeping Your Rental Property Safe

hartamasre — Tue, 07 Feb 2023 02:05:08 +0000

Finding the right tenant for your property is often a gamble. While some are lucky to come across responsible tenants who will take care of your property like their own, unfortunately, there are also some who will not only damage your property but worse, conduct criminal or illegal activities of which you have to bear the grunt. Your rental property could be used as a drug, prostitution and illegal gambling den. There are some who may also be using it as a bitcoin mining hub. If you notice abnormally high electricity usage via your TNB app, do pay extra caution to your tenant as it is a red flag.

It is not an idle threat. Do you know that there was a real-life case in Sarawak happened last year, whereby the Sarawak police raided six locations in the city and confiscated 1,069 bitcoin mining rigs after miners allegedly stole US$2 million worth of electricity? The electricity theft by these bitcoin miners actually led to three houses burning down in Sarawak. Worse, a landlord is liable for a crime committed by their tenant in a rented property.

Under Sections 107, 108, and 135 of the Customs Act under the Penal Code, a landlord can be held responsible if they supported illegal activities such as the storage of contraband cigarettes within their rental unit. Under Section Section 135 (1)(d) of the Customs Act 1967, landlords can be held liable if they permit their tenants to keep uncustomed or prohibited items within their leased property.

Keeping on your toes

Hence, it is best for a landlord to always do a full background check on your tenant before passing down the key. Here are among some information you should look:

The tenant’s proof of employment.
The ability to pay their first month rental and security deposit.
The tenant has a good credit score and credit history.

Meanwhile, some red flags would include having been evicted previously, having undergone bankruptcy, and not having a stable employment history.

Landlords are advice to insert clauses in your tenancy agreement to include clauses such as the landlord’s and tenant’s obligations, house rules and prohibitions on what they can or cannot do on the property.

For instance, they are not allowed to sub-let the unit without your permission. Also, do include a list of inventories in your unit and make sure that both yourself and the tenant have checked on the condition of these inventories before they move in. If necessary, also include the repercussion and fines incurred should any of these clauses are broken. Also, conduct periodical checks on your property and do not wait until they are about to move out to do so.

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What Makes A Good Neighbourhood

hartamasre — Mon, 19 Dec 2022 01:00:11 +0000

The “perfect home” is a subjective matter and one that is very personalized. A perfect home for you may not be the perfect home for another, hence it all boils down to what the homebuyer needs or prefers at that point in time. Home A may also be the perfect home for you when you are in your 30s but it may not be when you are in your 40s.

Nonetheless, most homebuyers can agree on a few pertinent points that make a neighbourhood more sought after. One for sure is having a like-minded community and neighbours who live together, having accessibility to daily amenities and conveniences as well as being close to transportation hubs, highways, medical facilities and schools. Here are some factors to consider on what makes a good neighbourhood before you decide to purchase a home.

Safety comes first
The most important factor is to have the peace of mind that our neighbourhood is safe to stay in. Neighbours who know each other and are ready to lend a helping hand is always a bonus. Ensure that the security guards patrol the housing area and perform strict checks upon exits and entry of visitors.

Accessibility to amenities
Make sure your neighbourhood has easy access to healthcare centres, schools, grocers and public transportation hubs. This will ease your day-to-day activities when you need to run your errands. Being close to schools increases the demand of your property if you are an investor as parents would be on the lookout for properties like these.

Good property management
Building a property is easy, but maintaining it is another matter. Make sure that the property management company managing the building is a reputable one because when a property is not well-maintained, that is where the nightmare begins. Go through the minutes of the AGM and ensure that the financials of the property is well managed.

Green landscapes
Green landscapes with trees and small parks can often add a lot of value and character to a neighbourhood. As most people are looking to adopt a healthier lifestyle, having green areas where you can spend your outdoors is a necessity.

Pedestrian-friendly
It is important to feel safe to be able to walk around your neighbourhood if you do not have a car or to come out for an evening walk.

Having good neighbours
Having good and helpful neighbours can go a very long way. A community which takes care of one another, connect with their community and gathers together to solve problems is always a gem.

[Image source: Image by yastremskaolga on Freepik]

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Pros And Cons Of Furnished Property

hartamasre — Mon, 05 Dec 2022 01:00:21 +0000

While buying or renting a fully furnished property can save up your money on furniture and allows you to settle into the new home more quickly, those properties usually have a higher asking price and rent, or the furniture or renovation style may not suit your taste.

Therefore, if you are picky about your furnishings and decorations or already have a lot of furniture, a fully furnished property may not work for you.

However, for people who are looking for a shorter-term rental or a temporary home, such as a student, first-time tenant, or homebuyer, as well as contract staff, a fully furnished apartment will be ideal for them.

If you are still unsure about which works best for you, here are the pros and cons of furnished property to help you make better decisions.

The pros:

Lower upfront cost
Moving into a furnished property, be it fully or partly furnished, will help you save on the upfront setting cost of the new place. This means that you will have more money to spend on non-essential items to make your new place more like home.

Saving time
Moving from one place to another place is a long and stressful journey. If you are open to any decoration style, pick a furnished property that will not only lighten the stress of moving into a new place but also save a lot of time settling in.

Ease of moving out
Furnished property has always been in demand, especially for someone looking for a temporary home, because it is easy to move in and move out. Packing and moving out will not be an issue to you because all you need to deal with is only the wardrobe and decoration.

The cons:

Higher asking price or rental
A furnished property typically commands a higher asking price or rental simply because nothing comes for free. In many cases, if you add up the annual extra rental fees you paid for a fully furnished unit, it often exceeds that of an unfurnished unit, where you have been buying the furniture and decorations in bits.

Hidden cost
You may not need a dishwasher but since you have one in your new place, why not use it? The higher power bill aside, if you are only renting the place and the dishwasher is not working for whatever reason, do not forget you are likely the one who pays for the repair fee, or worse scenario, you have to buy a new one before you can move out and claim your rental deposit back.

Lack of sense of belonging
Staying in a fully furnished unit means that you do not get to decide on the furniture and furnishing style and material, which may not be meeting your standards hence you do not feel a strong sense of belonging in the new place. If you are particular about the furniture quality and style, a furnished unit may not be the best option for you.

[Image source: Photo by Cyrus Chong]

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Does Subletting Work In Malaysia?

hartamasre — Mon, 18 Apr 2022 05:58:58 +0000

While the legality of rent-to-rent, more commonly known as subletting, is arguable, it is still a common property investing strategy in the Malaysian real estate market.

Rent-to-rent happens when an existing tenant lets all or part of their home to someone else, who is known as a subtenant, with the consent of the landlord.

You may be curious to know if there is a market for subletting in Malaysia. The answer is yes and the return of investment is handsome if the property condition is fine and the location is right! Some of the most popular subletting hotspots in Klang Valley are Setapak, Old Klang Road, and Petaling Jaya, which are the highly populated and mature areas surrounded by many amenities.

Why is subletting popular, then? The number one reason is the rent will be more affordable as compared to renting a whole place, especially in a well-developed area. The second reason is the flexibility that a normal tenancy could not offer. Here are the advantages of subletting:

1. Low move-in cost

Subletting is more budget-friendly than renting an entire property. In the majority of subletting cases, the subtenant doesn’t have to pay for the tenancy agreement and the monthly rent and utility bills deposits will be much lower too. Furthermore, most of the subletting units are partly or fully furnished hence subtenants can save on the move-in cost.

2. The flexibility to move in and out

Unlike renting a whole unit, the terms and conditions of renting a room are usually more relaxed, which allows subtenants to move in or out as long as they give an early notice, or assist to find the next subtenant.

3. Short-term rental

As most of the subletting do not sign a formal tenancy agreement, the standard term of renting of at least one year, for the person who is expecting to stay in an area for only a short period, sublet seems to be the better option as it is usually hard to find a short-term stay for a normal lease. While subletting does bring in a good return, as a landlord or a tenant, there are many things to consider before you decide to sublet the property, such as problematic subtenants and the maintenance of the house. Here are some of the important considerations to think through before you sublet your property:

Extra wear and tear to the property
Neighbours complaining about different people are coming and going from the property
Be ready to pay on behalf of the subtenant if they do not pay rent on time.
The parking issue within the residential compound

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Ending Your Tenancy Agreement Early? Think Twice

hartamasre — Mon, 01 Nov 2021 02:30:23 +0000

Before agreeing to be a landlord or tenant for any property, you would have to sign a tenancy agreement to ensure the rights of both parties are protected. The tenancy agreement is governed by the Contracts Act 1950 and cannot be terminated at will. Once they are signed, the stamp duty (borne by the tenant) has been paid and the original signed document stamped by the Malaysia Inland Revenue Board or Lembaga Hasil Dalam Negeri Malaysia (LHDN), you may not terminate the tenancy early unless there is a clause in the tenancy agreement.

That includes not being able to evict a tenant even if they did not pay up their rental which means that the landlord has to go through legal ways for termination of contract.

Does that mean the contract is a dead-end for the landlord or tenant? If the laws are so rigid, why the need for them in the first place? The tenancy agreement is to protect both parties should any disagreement or dispute arises later on. So, when can the contract be allowed to be terminated? Only under these circumstances:

1. Job relocation

This includes having to work abroad or elsewhere in the country and there is no way for you to be able to stay in your property.

2. Breaching of the agreement

Should any party breach the agreement such as increasing the rental fee suddenly or the tenant subletting the unit without permission, the contract can be terminated.

3. The existing tenant found a replacement tenant

The tenant who wants to leave has found a new tenant, so the landlord does not incur any losses.

So now you know the tenancy agreement allowed to be terminated under what sort of circumstances. The question now is, what will be the consequences of early termination if you are not fall under any of the above-mentioned circumstances?

1. Legal action

The landlord can sue for loss of income due to the breach of contract should the tenant move out without the adhering to the stipulated notice period. Meanwhile, a tenant can seek to recover the cost of relocating or in the case of commercial properties, renovation of the property should the landlord terminate the contract without advance notice to the tenant. However, this boils down to the stipulated terms and conditions signed in the tenancy agreement.

2. Deposit forfeiture

The landlord has the right to forfeit the security deposit, usually equivalent to two months rental.

If the agreement termination is a must regardless the consequences. The tenant or landlord has to prepare an official letter to prove the termination has reach a mutual agreement.

In the official letter of landlord, it should include of this following information:

Date of termination
The intention to terminate
Reference to termination clause in the tenancy agreement
Reason of termination (in cases of contract breach)
Date of property handover
Settlement of any penalties
Contact details
Any other additional legal clauses or agreement mutually

Meanwhile, in the termination letter from the tenant, it should have the same content but should also include the following:

Letter from employer (in cases of transfer to another place)
Details of tenant replacement, if any

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Renting - Hartamas Real Estate

Pros And Cons Living In A Studio Apartment

Pros of living in studio apartment:

Cons of living in studio apartment:

Subscribe to our email newsletter today to receive updates on the latest news, property guides, new launches, featured secondary market properties and special offers.​

Do You Need Landlord Insurance?

Subscribe to our email newsletter today to receive updates on the latest news, property guides, new launches, featured secondary market properties and special offers.​

Buying Into Education Townships

Pros and cons of renting to students

Subscribe to our email newsletter today to receive updates on the latest news, property guides, new launches, featured secondary market properties and special offers.​

What Should You Do If Your Tenant Damages Your Property?

1. Check who caused the damage

2. Conduct an official inspection

3. Issue a quotation

Subscribe to our email newsletter today to receive updates on the latest news, property guides, new launches, featured secondary market properties and special offers.​

Keeping Your Rental Property Safe

Keeping on your toes

Subscribe to our email newsletter today to receive updates on the latest news, property guides, new launches, featured secondary market properties and special offers.​

What Makes A Good Neighbourhood

Safety comes first

Accessibility to amenities

Good property management

Green landscapes

Pedestrian-friendly

Having good neighbours

Subscribe to our email newsletter today to receive updates on the latest news, property guides, new launches, featured secondary market properties and special offers.​

Pros And Cons Of Furnished Property

The pros:

The cons:

Subscribe to our email newsletter today to receive updates on the latest news, property guides, new launches, featured secondary market properties and special offers.​

Does Subletting Work In Malaysia?

1. Low move-in cost

2. The flexibility to move in and out

3. Short-term rental

Subscribe to our email newsletter today to receive updates on the latest news, property guides, new launches, featured secondary market properties and special offers.​

Ending Your Tenancy Agreement Early? Think Twice

1. Job relocation

2. Breaching of the agreement

3. The existing tenant found a replacement tenant

1. Legal action

2. Deposit forfeiture

Subscribe to our email newsletter today to receive updates on the latest news, property guides, new launches, featured secondary market properties and special offers.​

Subscribe to our email newsletter today to receive updates on the latest news, property guides, new launches, featured secondary market properties and special offers.

Subscribe to our email newsletter today to receive updates on the latest news, property guides, new launches, featured secondary market properties and special offers.

Subscribe to our email newsletter today to receive updates on the latest news, property guides, new launches, featured secondary market properties and special offers.

Subscribe to our email newsletter today to receive updates on the latest news, property guides, new launches, featured secondary market properties and special offers.

Subscribe to our email newsletter today to receive updates on the latest news, property guides, new launches, featured secondary market properties and special offers.

Subscribe to our email newsletter today to receive updates on the latest news, property guides, new launches, featured secondary market properties and special offers.

Subscribe to our email newsletter today to receive updates on the latest news, property guides, new launches, featured secondary market properties and special offers.

Subscribe to our email newsletter today to receive updates on the latest news, property guides, new launches, featured secondary market properties and special offers.

Subscribe to our email newsletter today to receive updates on the latest news, property guides, new launches, featured secondary market properties and special offers.