Tips to Prepare Your Shop to be Rent Ready in Singapore

Property is normally the investment of choice for investors around the globe. Owning a property or properties is a fundamental instinct in humans. Like gold, it is one of the most sought after investments.

Well, we could talk about the advantages of buying property endlessly and write a book about it, so let’s narrow it down and get to the nitty gritty of what this article is all about.

So are you relocating to Singapore and you want a small investment on the side that will bring in a monthly income? On the other hand, you are not relocating to Singapore, but you want to have an investment in that lovely island nation, which is the only island city-country in the world, that will ensure a monthly income.

So let’s assume you have bought the shop or store premises for investment purposes, not to be a shop owner yourself and sell goods, but to rent it out and have an extra monthly income stream.

These tips could also apply if you bought a house to rent out for similar reasons, or any immovable property or real estate with buildings attached directly to the land.

The purpose of this article is to give some advice and tips on the where to buy and what you need to do to give your investment the best possible chance to work for you and when you have a shop for rent, how to prepare your shop/store to be attractive for potential tenants.

LOCATION

As they say location, location, location! As an investor, you have to buy according to your budget. If your budget is up to it, you obviously want to buy in the more popular areas of Singapore.

PropertyGuru is a website that provides just about all you need to know about the property market in Singapore. Check it out for a list of Singapore’s most popular areas. Here are just few:

  1. Harbourfront/Telok Blangah
  2. Balestier / Toa Payoh
  3. Orchard / River Valley
  4. East Coast / Marine Parade
  5. Ang Mo Kio / Bishan / Thomson

REPAIRS/IMPROVEMENTS

You would not want to do business from a shop where the fixtures like taps, toilets and the lights do not work, the building needs to be repainted, there are broken appliances, chips or holes in the wall and other damages. Do the doors and windows work properly are the floors and other surfaces damaged?

Your potential tenant does also not want do business from such a premises. Make it a priority to get everything that needs to be repaired or replaced fixed up before you start advertising. Any improvements can only enhance your chances of getting a good tenant. A new coat of paint, for example, makes all the difference.

ADVERTISING AND LISTING

As the property owner, it is your choice whether you want to advertise privately or through an estate agency. If you go the private route, list and advertise on reputable online property portals. Social media such as Facebook and Twitter among many others are also important advertising and marketing platforms.

Such service also provides a list of preferred agents among its many other services. Check out the website if you want to list with reputable agents.

RENTEE/LESSEE/TENANT

If you really want to save yourself many potential headaches, it is best to go the estate agency route. Your investment property is a major asset for you, so make sure it is managed professionally, even if it does cost you money to do so. It could save you a lot more money in the future than it costs in fees.

Reputable estate agencies do thorough creditworthiness checks and vetting on applicants wanting to rent your property. A basic credit check will not reveal what an in-depth check uncovers as far as the client’s affordability goes, and a bad egg might just slip through the cracks and cost you a lot of stress and money in future. Get it done properly!

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LEASE AGREEMENT

As with credit checks, a reputable agency should also have a legal lease agreement that will adequately protect and cover you, the landlord, for all contingencies. It does the same for the applicant as well. Therefore, it works both ways and keeps owner and renter happy.

There are lease agreements that you can google and download and use, but they do not always provide for adequate cover and might not be registered with that country’s Consumer Protection body, such as CASE,  and is therefore illegal. Any claims by either the owner or the tenant after the lease is up might not stand up in court and the case might well be thrown out, as the lease agreement is not a legal one.

If you decide to do everything privately, there are legal eagles that will draw up valid lease agreements, but it could end up costing you as well as the applicant more money. Legal fees cost money and you could very well lose a potentially good client who does not want to pay exorbitant lawyer fees

Property prices in recent years rose too rapidly, forcing the Singaporean government to institute a “cooling” period to stabilize prices and prevent the property market from crashing.

Although there are major private property investors who believe that the cooling period has gone on too long and should be relaxed, probably more agree that government is doing the right thing and should continue to do so for now.

The are many more Singaporeans who cannot afford to invest in property than there are who can, and if prices are too high, there are less renters. Property investors need renters otherwise, it becomes a loss, lose situation instead of a win, win situation.

Singapore is proud of its reputation as being rated one of the least corrupt countries in the world and is well invested in an established and robust intellectual property (IP) regime.

Trust is the basis of good business and Singapore’s integrity and competitive tax rates and laws and holistic approach towards stewardship is keenly attuned to providing the ideal environment for investors, big and small.

You could do a lot worse than to invest in a small shop in Singapore that will bring you in a regular monthly income.

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Image credit (under CCL): feature, for rent, , Lease Agreement

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