By Tharmini Kenas
Abundance of unsold houses has led to short-term renting
WHILE there seems to be a paradox in the market of a property glut and some prospective homebuyers still on the lookout, one thing is certain – opportunities abound in the rental market.
According to Tech Realtors Properties Sdn Bhd senior real estate negotiator and team manager Ching Meng Yip, “Malaysians are opting to rent since the loan approval process has become more stringent. Many people are holding back their decision to buy a property.”
However, the abundance of unsold houses has led to a brimming rental market in Malaysia, making it tougher for landlords to stand out in the crowd with their housing offerings.
Ching said that subletting has become a favoured option among landlords who target bachelors as their tenants. Some landlords opt for home-sharing services, venturing into the business of short-term renting to get a higher rental return.
Sheakay Real Estate senior negotiator Seann Leng Yoong Kee also said that the home-sharing industry is booming in Malaysia due to the thriving tourism sector.
He said the influx of foreign workers and students have resulted in the rise of short-term rentals in the city centre and expatriates are a good target because they provide good returns.
Finding the right rental property
In the recent StarProperty.my Buyers’ Sentiment Survey 2017, investors looking for houses with high capital appreciation point to location as the top factor for investment purposes.
Ching said that smart investors would choose the ideal location to fulfil the requirements of their tenants. Location in itself is an aspect that plays a crucial part in attracting a certain type of tenant.
“For instance, if the rental unit is near any office tower or public transportation, the tenants are bound to be single professionals or foreign workers,” said Ching.
Meanwhile, websites such as Propwall.my and iBilik.my as well as other social media platforms have become more popular to prospective tenants in search of the right property. The ease of connecting tenants and landlords has paved a brighter future for the rental market.