805312- Tips for 1st Time Landlords

SURFER’S GIRL

TIPS FOR FIRST-TIME LANDLORDS

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Ref: 805312
How to close on unrentable condos?

Subject: Construction activity from living room
Comments: Be aware of client's needs and be selective.

"Any viewing this weekend?" enquired an anxious Owner of the Tanglin Regency Condo almost every week. Asia USA did have viewings in the condo but the feedback has been the "construction site" adjoining the unit.

Strength:

He had fully furnished his 3-bedroom with upscale furnishings at around S$30,000 so as to differentiate his unit from other still empty ones. It is a good move and he had several agents bringing their clients to view his show flat.
Master bedroom has green views of trees and Tanglin Road/mosque.

Weakness:

No closing because the living room faces the active construction of the new Tanglin View Condos, with cranes and other equipment discouraging any prospect. Earth-moving equipment and noises were heard. Yet, surprising, Asia USA managed to find an Australian couple who did not mind the construction activities, as they appreciate his quality of furnishing more! We had several viewings with no response and now there is one ready to close.

A queen-sized bed was bought despite timely and good advice from Asia USA agent.

(in this case, our Australian couple wanted a king-sized bed and he said it could not be relocated to the 2^nd bedroom).

Every Landlord wants the best highest rental but be aware of the unit's strengths and weaknesses.

"Is there any light at the end of the tunnel?" asked Landlord Mr B frequently. This is really a lame duck. The apartment is just not rentable. However, due to his persistent phone calls, our agents have kept his unit in mind. An Australian couple with no children (therefore his light coloured fabric sofa would not be stained) was willing to lease. It would be a company lease - a well known international cinema operator. Rental was offered at $3,500 but he wanted $4,000 (to recoup his furnishing costs). It was $4,000 or no further negotiations..

Advice to new Landlords: Sit down and write how many viewings you had over the past 2 months. Seek feedback (many Singapore landlords do nowadays). In this case, it is the construction site next door.

Since there are so many other units, there is no problem getting one. Another 2 months' vacancy when the piling starts, would lead to a loss of $7,000. Another 6 months' vacancy when trucks come in and out of the Tanglin View construction site and the loss would be $21,000.

In this case, we got a unit at $3,500 without any view of the construction site. The tenant was allowed to choose her furniture and tenancy commences within 7 days (not 30 days as in some cases). The Landlord is more investment-minded and realistic. 2-bedroom in Tanglin Regency has been rented from $2,300 fully furnished and $3,500 for a 3-bedroom of 1,100 sq .ft would be considered a "good" rental. Corporate lease (better than personal lease) and immediate occupany are 2 favourable factors to be considered by the new Landlord too.

Advice to new Agents: In cases such as described, it is usually a waste of time showing apartments with construction sites next door. Since the unit is tastefully and expensively furnished, there is a possibility of closing but a low rate of success is anticipated unless you have a certain type of clientele as the Australian couple.

Prospective Tenants feel you are wasting their valuable time
and will seek other realtors.

You need to qualify your prospective Tenant very well.

In the case of the Australian couple, the wife broke her back when the "new" mattress of the previous UE condo gave way. She rented without seeing the furniture and the landlady had purchased a sofa set with hard cushions. So, she tested this unit's furnishing and liked it. Both husband and wife like Tanglin Regency, otherwise there would be no closing. You still have to act fast as there are so many furnished units in older condos as alternatives.

However, the Landlord is not realistic and we nearly lose the account to another agent.

Good luck to your endeavours.

Anne Brocklebank.