How do I rent out my studio condo when I work abroad?

[buyer_east]

My investment apartment at Woodlands area while in the past couple of years I used to post ads and
screen tenant myself. Now I am posted to US for a few years and what are the usual methods for home
owners like me to rent out unit? How would they do it?

I don't have family in SG and am not so well connected here.

Thank you in advance.

[Arcachon]

POA

https://singaporelegaladvice.com/law-articles/power-of-attorney-in-singapore-types-and-usages-2/

B) Disallowing Salespersons to be an Attorney pursuant to a Power of Attorney (POA) for their Clients

10. The norm in any POA case is to appoint a person who is a family member or close family friend, as the person given the POA (i.e. the attorney) will be entrusted with heavy responsibilities related to the property matters. A salesperson is already in a contractual relationship with his client and there is a conflict of interest in acting as an attorney concurrently for the same property transaction. In view of the inherent conflict of interest, salespersons shall not be attorneys for clients whom they are acting for in the property transaction. If a salesperson is not facilitating the property transaction and he is appointed by the buyer or seller to be an attorney, this is permissible but the salesperson is not allowed to directly or indirectly handle, direct or instruct the distribution of the sales proceeds. If the salesperson is appointed as an attorney by one party, he cannot represent the other party to the transaction.

http://www.iea.sg/news-42

[buyer_east]

Are there companies which can take my apartment, manage it and I pay a fee?
The bottomline is I get some money to offset my loan.

[Kelonguni]

Are there companies which can take my apartment, manage it and I pay a fee?
The bottomline is I get some money to offset my loan.

This service is quite common in some places such as Phillipines.

I am sure there are in SG as well. My trusted agent friends can help if I were posted elsewhere.

But it's not easy to work out the fees required for this. If everything dealt with by the company, I would say 10% of rental is not expensive given the work involved.

Refer below for some

http://cairnhillproperties.com/

http://www.citiprop.com/

[buyer_east]

This service is quite common in some places such as Phillipines.

I am sure there are in SG as well. My trusted agent friends can help if I were posted elsewhere.

But it's not easy to work out the fees required for this. If everything dealt with by the company, I would say 10% of rental is not expensive given the work involved.

Refer below for some

http://cairnhillproperties.com/

http://www.citiprop.com/

thank you and nice to know that.
are the companies selective over the type of properties? i understand these companies carter for rich and famous but my 1 room studio is too small for such clients.

[Arcachon]

At your service.

[Kelonguni]

thank you and nice to know that.
are the companies selective over the type of properties? i understand these companies carter for rich and famous but my 1 room studio is too small for such clients.

Need a trusted agent. You can either appoint Arcachon who is experienced and passionate or try asking this question on PropertyGuru and select an agent from those who responds.

If small studio, just handover everything to an agent. Some of them hold many keys and can deal with all the arrangement for you. I think.

[buyer_east]

Need a trusted agent. You can either appoint Arcachon who is experienced and passionate or try asking this question on PropertyGuru and select an agent from those who responds.

If small studio, just handover everything to an agent. Some of them hold many keys and can deal with all the arrangement for you. I think.

Oh. Thank you I never thought that is a way of doing about it.
I thought agents only go pester buyers.

I bet Arcachon can get better response if he/she writes proper posts. The way he does in this threads looks like a spammer. :)

[Arcachon]

Oh. Thank you I never thought that is a way of doing about it.
I thought agents only go pester buyers.

I bet Arcachon can get better response if he/she writes proper posts. The way he does in this threads looks like a spammer. :)

Thanks.

You can never make everyone like you, including LKY.

[buyer_east]

Thanks.

You can never make everyone like you, including LKY.

Thank you anyway. :)

Normally what's the rates agents charge for these rental deals?

[Arcachon]

Thank you anyway. :)

Normally what's the rates agents charge for these rental deals?

Normally agents don't waste their time for these rental deals.

Most prefer to hit and run, you hardly get the million dollar type of agent.

If you find one never let go.

http://www.straitstimes.com/singapore/overnight-millionaire-record-penthouse-deal-nets-26-year-old-property-agent-15m

https://static.straitstimes.com.sg/sites/default/files/styles/article_pictrure_780x520_/public/articles/2015/05/29/ST_20150529_AGENT296ODB_1359835e_2x.jpg?itok=fRNrcPor

[buyer_east]

Normally agents don't waste their time for these rental deals.

Most prefer to hit and run, you hardly get the million dollar type of agent.

If you find one never let go.



Interesting and thank you.

[stalingrad]

Normally agents don't waste their time for these rental deals.

Most prefer to hit and run, you hardly get the million dollar type of agent.

If you find one never let go.

http://www.straitstimes.com/singapore/overnight-millionaire-record-penthouse-deal-nets-26-year-old-property-agent-15m

https://static.straitstimes.com.sg/sites/default/files/styles/article_pictrure_780x520_/public/articles/2015/05/29/ST_20150529_AGENT296ODB_1359835e_2x.jpg?itok=fRNrcPor

The rental market has completely collapsed. We rented out our condo for $5,000 4 years ago. After the last tenant moved out in June, we have not been able to get a new one, even after we reduced our asking rate to $3,900. We plan to cut it to $3,000 to get a bite. That is a 40% collapse. In any other country, when rental rates fall 40%, the economy would soon sour. Let's see whether that is true or not in Singapore.

[Arcachon]

The rental market has completely collapsed. We rented out our condo for $5,000 4 years ago. After the last tenant moved out in June, we have not been able to get a new one, even after we reduced our asking rate to $3,900. We plan to cut it to $3,000 to get a bite. That is a 40% collapse. In any other country, when rental rates fall 40%, the economy would soon sour. Let's see whether that is true or not in Singapore.

I just got my agent to renew 4000 for another year. Pay him 2000 plus GST.

Yesterday was looking for HDB for PRC tenant from Eunosville HUDC.

Overheard from PRC market rate for a bed is 260 a month.

Where is your place, did you DIY or get RES to help.

[stalingrad]

Our condo is located in the west coast area. We always use an agent. Now we have two agents, or maybe three. But still no bites. The market is really bad.

[Arcachon]

Our condo is located in the west coast area. We always use an agent. Now we have two agents, or maybe three. But still no bites. The market is really bad.

Maybe you should consider room rental instead.

[proud owner]

Our condo is located in the west coast area. We always use an agent. Now we have two agents, or maybe three. But still no bites. The market is really bad.

Never use multiple agents.

If you have 3 agents working on it, there will be 3 duplicate advertisements
It gives renters a false sense of "many to choose from"
It makes renters feel YOU ARE DESPERATE
It frustrates renters when they think they have 3 units to view ..only to find out its the same one.


Anyway, my view is that from 2018 onward, rental prices will go up ...

hang on there

[proud owner]

Maybe you should consider room rental instead.


Unless you send a helper to go clean up weekly, trust me, your unit will look worst than a 40 yr old HDB within 6 mths ...

individual room tenants care less about doing clean..

[Kelonguni]

Can't say completely collapsed.

I have engaged a trusted friend agent to help. We had to benchmark to close to market price to secure new tenants but have always managed within a month or so.

From the peak in 2013, I have had to drop rent by 20% for one unit having same tenant for numerous renewals. For another, drop of about 8% from 2015, yield still about 3.4% latest. The last one also managed to secure at 2.8% yield, paltry but surviving and comfortably cover all interests and costs.

The MAS concern of the imbalance between price, rent and interest rate is real especially for investment properties including office and commercial units. This is especially true since we expect developers to price new units much higher than current ones and create the imbalance. The only group to keep buying at the increased prices are those buying mainly to live in.

The only solutions are further relaxing of CMs or to increase population faster. If neither, the tax will drop and the Govt will have to increase taxes tremendously.


The rental market has completely collapsed. We rented out our condo for $5,000 4 years ago. After the last tenant moved out in June, we have not been able to get a new one, even after we reduced our asking rate to $3,900. We plan to cut it to $3,000 to get a bite. That is a 40% collapse. In any other country, when rental rates fall 40%, the economy would soon sour. Let's see whether that is true or not in Singapore.

[stalingrad]

Never use multiple agents.

If you have 3 agents working on it, there will be 3 duplicate advertisements
It gives renters a false sense of "many to choose from"
It makes renters feel YOU ARE DESPERATE
It frustrates renters when they think they have 3 units to view ..only to find out its the same one.


Anyway, my view is that from 2018 onward, rental prices will go up ...

hang on there

I agree. It was my wife who got so many lazy agents working for her. The rental market is bad, so the agents have no faith in getting a tenant and they don't work very hard. So many units have been left vacant and the government keeps selling land and developers keep buying en bloc to build more condos. What is wrong with this picture?

[stalingrad]

Can't say completely collapsed.

I have engaged a trusted friend agent to help. We had to benchmark to close to market price to secure new tenants but have always managed within a month or so.

From the peak in 2013, I have had to drop rent by 20% for one unit having same tenant for numerous renewals. For another, drop of about 8% from 2015, yield still about 3.4% latest. The last one also managed to secure at 2.8% yield, paltry but surviving and comfortably cover all interests and costs.

The MAS concern of the imbalance between price, rent and interest rate is real especially for investment properties including office and commercial units. This is especially true since we expect developers to price new units much higher than current ones and create the imbalance. The only group to keep buying at the increased prices are those buying mainly to live in.

The only solutions are further relaxing of CMs or to increase population faster. If neither, the tax will drop and the Govt will have to increase taxes tremendously.

LHL has already given notice that taxes will go up. GST is already going up. Government revenues are already drying up.

So, when the government said GDP growth is 5.9%, who is paying attention? Probably no one. The situation on the ground does not mesh with that 5.9% figure.

[anythingwhatever]

The rental market has completely collapsed. We rented out our condo for $5,000 4 years ago. After the last tenant moved out in June, we have not been able to get a new one, even after we reduced our asking rate to $3,900. We plan to cut it to $3,000 to get a bite. That is a 40% collapse. In any other country, when rental rates fall 40%, the economy would soon sour. Let's see whether that is true or not in Singapore.

$3000? Why not try $3500 first... :)

[stalingrad]

$3000? Why not try $3500 first... :)

Everyone else is asking for $3,500. We want to stand out. We may even try $2,800 just to get some cash flow. From $5,000 to $2,800. That is how bad the situation on the ground is. And it just happened all of a sudden. Only one year ago, rent for similar units hovered around 4,200 to 4,000. Then all of a sudden, everyone is throwing in the towel and the average has dropped to $3,500. That suggests a significant change in demand and supply.

[proud owner]

Everyone else is asking for $3,500. We want to stand out. We may even try $2,800 just to get some cash flow. From $5,000 to $2,800. That is how bad the situation on the ground is. And it just happened all of a sudden. Only one year ago, rent for similar units hovered around 4,200 to 4,000. Then all of a sudden, everyone is throwing in the towel and the average has dropped to $3,500. That suggests a significant change in demand and supply.



if you can hold on and hold out ... i still believe rental will go up next year ...

we are already in Dec 2017 ...

[proud owner]

In May 2017 i predicted sale prices will go up in 2018 ... market beat me to it... started flying in Sep oct ...

[2824]

Everyone else is asking for $3,500. We want to stand out. We may even try $2,800 just to get some cash flow. From $5,000 to $2,800. That is how bad the situation on the ground is. And it just happened all of a sudden. Only one year ago, rent for similar units hovered around 4,200 to 4,000. Then all of a sudden, everyone is throwing in the towel and the average has dropped to $3,500. That suggests a significant change in demand and supply.

The sudden and large drop should be caused by a new development being completed and coming on the rental mkt.

[stalingrad]

if you can hold on and hold out ... i still believe rental will go up next year ...

we are already in Dec 2017 ...

Explain to me what will make 2018 better than this year?

[jwong71]

Never use multiple agents.

If you have 3 agents working on it, there will be 3 duplicate advertisements
It gives renters a false sense of "many to choose from"
It makes renters feel YOU ARE DESPERATE
It frustrates renters when they think they have 3 units to view ..only to find out its the same one.


Anyway, my view is that from 2018 onward, rental prices will go up ...

hang on there
You are right, I don’t use more than 1 agent to ad my place. To flood the propertyguru and looks like many units flooding the estate.

[Kelonguni]

Bro, your strategy is wrong.

Firstly, I see your wife doing all the liaising and you are just in the passenger seat criticising the wife and the agents. Tenants especially good ones need careful thought and planning to attract. All my units were rented at market and above. Every listing did not exceed a month to attract serious tenants, with less than a week between changes of tenants (professionals).

Secondly, it’s exactly that kind of blind dropping of rent that is causing other landlords issues with rents dropping in your area.

People who are renting small units at 2K and larger units at 3K have a certain mentality, and they will not go for units that only and merely cut rent drastically, but will instead use it as a bargaining chip, ie there is this unit from landlord B asking for 2.8K but I am offering landlord A 3K max because I like landlord A’s unit, even though landlord A asked for 3.5K.

Focus on meeting the needs of your prospective tenant profile. Don’t be a sabo king.


Everyone else is asking for $3,500. We want to stand out. We may even try $2,800 just to get some cash flow. From $5,000 to $2,800. That is how bad the situation on the ground is. And it just happened all of a sudden. Only one year ago, rent for similar units hovered around 4,200 to 4,000. Then all of a sudden, everyone is throwing in the towel and the average has dropped to $3,500. That suggests a significant change in demand and supply.

[tonymontana]

The rental market has completely collapsed. We rented out our condo for $5,000 4 years ago. After the last tenant moved out in June, we have not been able to get a new one, even after we reduced our asking rate to $3,900. We plan to cut it to $3,000 to get a bite. That is a 40% collapse. In any other country, when rental rates fall 40%, the economy would soon sour. Let's see whether that is true or not in Singapore.

sorry to hear that. btw may I just ask, at $3000 p/m, what's your gross yield? (just trying to get a clearer picture, you don't have to answer ).

anyway hope your unit gets rented out soon.

[teddybear]

Don't anyhow say lah!

1 of my tenant completed tenancy and vacated my unit in Sep this year.
In Oct I already had a new tenant moved in (for a turn around time of just 1 month) with just a slight drop in rental!

So it is clear that rental market may have indeed soften, it has not collapsed!
May be rental market may have collapsed for your OCR private properties, but definitely not for my CCR private properties!
But isn't this what I have warned again and again since 2009 (but you stubbornly refused to heed my advice)?!


The rental market has completely collapsed. We rented out our condo for $5,000 4 years ago. After the last tenant moved out in June, we have not been able to get a new one, even after we reduced our asking rate to $3,900. We plan to cut it to $3,000 to get a bite. That is a 40% collapse. In any other country, when rental rates fall 40%, the economy would soon sour. Let's see whether that is true or not in Singapore.

[stalingrad]

Don't anyhow say lah!

1 of my tenant completed tenancy and vacated my unit in Sep this year.
In Oct I already had a new tenant moved in (for a turn around time of just 1 month) with just a slight drop in rental!

So it is clear that rental market may have indeed soften, it has not collapsed!
May be rental market may have collapsed for your OCR private properties, but definitely not for my CCR private properties!
But isn't this what I have warned again and again since 2009 (but you stubbornly refused to heed my advice)?!

You are right, teddy. But at this moment, our problem is we don't live in Singapore, and its hard to try to find a renter when you don't live there because the agents are just not doing their job.

[stalingrad]

sorry to hear that. btw may I just ask, at $3000 p/m, what's your gross yield? (just trying to get a clearer picture, you don't have to answer ).

anyway hope your unit gets rented out soon.

3,000 is not bad, given that we bought the condo in 2007 and paid a reasonable price. gross yield would be close to 5%.

[Kelonguni]

Well then, this is a non issue.

There are some with the cost of housing almost double yours and renting for 3K only as well. Only difference is new.

I am sure in 2007, the rent you could fetch was most probably lower than 3K.


3,000 is not bad, given that we bought the condo in 2007 and paid a reasonable price. gross yield would be close to 5%.

[PropVestor]

3,000 is not bad, given that we bought the condo in 2007 and paid a reasonable price. gross yield would be close to 5%.

My question is for 10 years, what is the upkeep for this apartment? There must be a reason for such a 'low ball' figure against your fellow units in the area. When I mean upkeep, I also refer to the management who does the maintenance of the shared space over and above your own.

When you are not in SG, you will have to depend on someone you trust to manage the lease. If you do not have, I think you have to manage your expectations too. :)

2 cents,
PropVestor

[tonymontana]

3,000 is not bad, given that we bought the condo in 2007 and paid a reasonable price. gross yield would be close to 5%.

in that case, may I humbly point out to you that your rental has not actually collapsed, but that rates have merely NORMALIZED. My burning question is not why your rental is now 3k+ p.m, but how did you manage to rent out the same unit at 5K per month! It must have been a huge supply crunch in that location during the super good times (circa 2010-2011?) Or perhaps there was something unique about that tenant, or perhaps your unit itself?

I also think you could probably find a tenant for 3,500$ p.m now. Just be a bit patient?

As they say, some view the glass as half empty.

[tonymontana]

Well then, this is a non issue.

There are some with the cost of housing almost double yours and renting for 3K only as well. Only difference is new.

I am sure in 2007, the rent you could fetch was most probably lower than 3K.

rents were worse in 2003-2006, if i recall.

so i think stalingrads stry goes something like this:
2007 bought the unit brand new
stayed for 3 years
2010 went overseas, rented out at peak period - 5k, unit fully furnished, wonderful and fresh
now 2017 apartment a tad tired, rental drop.

[stalingrad]

in that case, may I humbly point out to you that your rental has not actually collapsed, but that rates have merely NORMALIZED. My burning question is not why your rental is now 3k+ p.m, but how did you manage to rent out the same unit at 5K per month! It must have been a huge supply crunch in that location during the super good times (circa 2010-2011?) Or perhaps there was something unique about that tenant, or perhaps your unit itself?

I also think you could probably find a tenant for 3,500$ p.m now. Just be a bit patient?

As they say, some view the glass as half empty.

We left Singapore in 2013 and rented out our condo for two years for $5k per month, and got the lease renewed in 2015. Just blind luck? I don't know. But we are hard put to find a tenant for even $3,500 now. The market is bad, at least in our area.

I am not desperate as we have no mortgage, but just to get a bit of cash flow to pay management fees and such, getting a tenant for $3,000 is not bad. I entered the discussion in this thread to just show how bad the market is. The MAS is right, the rental and sale markets are bifurcated. While the latter is booming, the former is crashing. When there is bifurcation, watch out for irrational exuberance on the sale side.

[stalingrad]

No, we bought it in 2007 before the project was built. TOP(?) was in 2010. Moved in in 2011 and moved out of Singapore in 2013.

[Kelonguni]

This bifurcation may occur for a while until those "new" units bought between 2013 and 2018 equilibrate in term of occupancy, and the new units of 2018 lead the next crazy prices and pull up the rental from that end. Right now, it's hard to predict as the market is still flooded with enbloc sellers buying at 2017 prices and some unsold units.


We left Singapore in 2013 and rented out our condo for two years for $5k per month, and got the lease renewed in 2015. Just blind luck? I don't know. But we are hard put to find a tenant for even $3,500 now. The market is bad, at least in our area.

I am not desperate as we have no mortgage, but just to get a bit of cash flow to pay management fees and such, getting a tenant for $3,000 is not bad. I entered the discussion in this thread to just show how bad the market is. The MAS is right, the rental and sale markets are bifurcated. While the latter is booming, the former is crashing. When there is bifurcation, watch out for irrational exuberance on the sale side.

[buyer_east]

You are right, teddy. But at this moment, our problem is we don't live in Singapore, and its hard to try to find a renter when you don't live there because the agents are just not doing their job.

if agent don't find tenant for you, will you pay commission to them for the vacant months?

[buyer_east]

We left Singapore in 2013 and rented out our condo for two years for $5k per month, and got the lease renewed in 2015. Just blind luck? I don't know. But we are hard put to find a tenant for even $3,500 now. The market is bad, at least in our area.

I am not desperate as we have no mortgage, but just to get a bit of cash flow to pay management fees and such, getting a tenant for $3,000 is not bad. I entered the discussion in this thread to just show how bad the market is. The MAS is right, the rental and sale markets are bifurcated. While the latter is booming, the former is crashing. When there is bifurcation, watch out for irrational exuberance on the sale side.

entrust your condo to me? i take 10% of the rental like the property management companies. :)
i will work very hard to ensure there is tenant as my cut is directly tied to the rental income.

[HP65]

in that case, may I humbly point out to you that your rental has not actually collapsed, but that rates have merely NORMALIZED. My burning question is not why your rental is now 3k+ p.m, but how did you manage to rent out the same unit at 5K per month! It must have been a huge supply crunch in that location during the super good times (circa 2010-2011?) Or perhaps there was something unique about that tenant, or perhaps your unit itself?

I also think you could probably find a tenant for 3,500$ p.m now. Just be a bit patient?

As they say, some view the glass as half empty.

This loser cant be trusted. The condo he is talking about is Carabelle. For years he has been talking down Sg ppty and keep saying Sg ppty is over-priced, yield is low etc.

He is at it again trying to paint a gloom picture. He missed the boat in 2009 trying to swap his Carabelle for a D10 ppty so he is still sour till this day. His ppty is at least a 3-bedder and one can easily find from SRX, PptyGuru and URA the transacted rental for 3-bedders are easily above $3.3K. Even a 2-bedder was rented out at $3.3k (maybe fully furnished). Unless his unit is so badly maintained and he does not want to repair the wear and tear but then it’s not that the market is bad but there are specific issues with his unit in question.

As for $5k in 2013, I also find it hard to believe. He probably inflated the numbers to exaggerate the gap between then and now.