Choosing A Rental Property
Find your dream rental property effortlessly with these 5 essential factors to consider!
Learn how to match your needs, budget, and preferences with the right property.
The five essential factors to consider when choosing the right property for you are:
- Purpose
- Location
- Rental rate
- Rental terms and conditions, and
- Timing
These factors not only help YOU, a potential tenant in your search for the ideal property. But also serve as a guide for property owners/landlords to understand what potential tenants are looking for.
Thus improving the property’s tenantability and attracting the right tenants to the properties.
Factor #1 Purpose
What is the first thing you would ask before you start looking to rent a property?
For What Purpose?!
This may be the most important, if not the deciding factor, that will make you choose one property over the other. It is the reason why you are looking for this property in the first place.
It will determine the type, size, and condition of the property that is most suitable to fulfil your needs.
For those looking for a home, it is important to consider your lifestyle needs. For example, if it is for your family, you may need a property with multiple bedrooms and a functional kitchen.
On the other hand, if you are single and work from home, you can consider smaller units such as a studio or SOHO, SOFO, SOVO units.
If you are looking for a commercial property, the purpose will impact the location and size of the space needed. For example, a retail store will require a space with high visibility and foot traffic.
For office space, consider your current staff count & if the space is sufficient in case you need to expand in the near future. Ample parking space may also be a factor to consider.
Tips for Landlords: By knowing who your targeted tenants are, ensure that the renovation or condition of the property is suitable for the intended use, both for residential and commercial properties.
Factor #2 Location
Location is another important factor to consider when you are looking for a property to rent. A good location can be determined by its accessibility, safety, and proximity to amenities and services.
Accessibility refers to how easily you can get in & out of the property and the surrounding area via roads or public transport networks.
When looking for accommodation, look for places that are not too far away from your workplace or have public transport within walking distance. If you have school-going children, you may also want a rent a property that is near their schools.
When renting an office space, think of what is important for your staff. Make sure that there are LRT, MRT, KTM, monorail stations or bus services nearby if the majority of them take public transport. Not forgetting also, must have restaurants and eateries nearby. Very Important!
Safety is also an important factor to consider. Research the crime rates and overall safety of the area. Drive around and speak with local residents to get a sense of the neighbourhood and community.
Proximity to amenities and services is also key. Consider your lifestyle and needs. Make a list of the amenities and services you will require on a daily basis, such as grocery stores, healthcare facilities, and recreation parks.
Take the time to research the surrounding area or neighbourhood and ensure it meets your needs before committing to rent a property in that area.
Tips for landlords: Understanding the importance of location, landlords can invest in properties that are located in desirable areas and offer easy access to amenities and transportation. This will increase the demand for your properties.
Factor #3 Rental Rate
The rental rate is another critical factor to consider when choosing a rental property. Make sure that you can afford the monthly rent, and that it fits within your budget.
It is important to determine your budget beforehand, considering your monthly income and expenses. You should aim to allocate no more than 30% of your monthly income towards renting accommodation.
Also, it’s important to also take into account any additional costs associated with renting the property, such as utilities, parking, and maintenance fees. These costs can add up and significantly impact your total monthly rent. So be sure to factor them in!
One factor that impacts the rental rate of a property is the location and facilities provided within the property. Properties located in popular areas with many surrounding amenities tend to have higher rental rates compared to properties located in less accessible areas with fewer amenities.
It’s important to find a balance between the rental rate, location, and your needs. Consider negotiating with the landlord if you feel the rental rate is too high. Or look for alternative options if the rental rate is out of your budget.
Tips for landlords: Check the rental rates for similar properties within the surrounding areas. Charge a fair & competitive rent that reflects the location and condition of your property.
Factor #4 Rental Terms & Conditions
Besides the rent amount, the terms and conditions associated with the rent can also significantly impact the choice and suitability of a property that you are looking for. It should be carefully negotiated and agreed upon before you decide and sign a tenancy agreement. First, consider the tenancy duration. Long-term tenancy, 2 or 3 years, for example, will give you stability and predictability. While a shorter term says, 6 months or 1 year, may be more appropriate for those who want more flexibility or are unsure about their career or business expansion plans.
You can also request an option to continue the tenancy for a further period and agreed on rent once this term has ended.
Another key factor to consider is the security deposit. It is important to understand the terms and conditions surrounding the security deposit. These including the amount required, when it will be returned, and what it can be used for.
Other important rental terms and conditions related to the property include:
- Pet policies: If you have a pet, it is important to find a property (especially strata properties like condos) that allows your furry friend to stay with you.
- Maintenance and repair responsibilities: This will dictate who is responsible for maintaining and repairing the property. Commonly, it is the landlord’s responsibility for residential properties, but the tenant is responsible for the maintenance for commercial properties.
- Subletting: If you plan to share the property with others, or to let it out to someone else, first check with the landlord if he/she agrees to let you do so.
- Free rental or renovation period, and many more…
Therefore, when negotiating a rental deal, if you don’t get the rental rate that you want you can also negotiate for terms that are favourable to you. Equally important!
Tips for landlords: By understanding and adhering to fair and transparent rental terms and conditions, landlords can attract responsible and reliable tenants, and avoid disputes and misunderstandings.
Factor #5 Timing
Timing!
This is also a crucial factor when choosing a rental property. You want to ensure that you have sufficient time to plan and do your due diligence, as well as to ensure that the property is available when you need it.
It is important to have a clear idea of when you need to move into a new property and to start your search well in advance. This will give you ample time to research and view different properties, compare rental rates, and terms and conditions, and make a well-informed decision.
Rental rates and availability can vary depending on the time of year too. For example, houses around colleges and universities may be in higher demand during the months before an academic year starts, when many students are looking to start their uni life.
If you find a property that meets all your requirements and is located in a place that is in high demand, you might want to take swift actions to secure it. If you missed it, there is no guarantee that you will be able to find another similar unit that you are satisfied with.
Finally, it is important to consider the timing of the tenancy agreement, as the start and end dates of the tenancy can impact your plans and future options.
Tips for landlords: Landlords should understand when your targeted tenants will be looking for your properties. Ensure that they are readily available when potential tenants come looking.
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