Get a head start on the rental market in Singapore with this comprehensive guide!
According to flash data from 99.co and SRX released earlier this month, rents and leasing volume for both HDB flats and condominium units rose in October as compared to September.
With Singapore set to ease covid-19 control measures, both the supply and demand for rental spaces are expected to be on the rise in the next two to three months.
When we look at today’s rental market, finding the sweet spot to price your rent is absolutely crucial.
In today’s article, we will be providing you with 26 simple yet proven ways for increasing the rental value of your property, as well as making your space irresistible to potential tenants.
1. Anticipate Lifestyle Needs
Always keep your prospective tenants in mind.
What kinds of lifestyles do they lead?
What can you do/offer to improve their quality of life if they were to rent your place? (E.g. Better internet, a coffee machine, an air-fryer, etc.)
By providing for your potential tenants and being considerate of them, you will be better positioned when negotiating rental fees. It will also cut short the time needed for you to find interested tenants. All these contribute to more rent!
One way to appeal to your ideal tenant is to consider devices that they would require. If you observe a certain demographic of tenants who are attracted to your place, you can install appliances and devices that they would utilise and enjoy.
Conversely, if you are looking to appeal to a broad range of tenants, then you might want to change up your amenities. Examples include CCTV for families with children, entertainment devices for young adults, etc.
Keep in mind: Always calculate and weigh the numbers before deciding to make major changes. The cost of making these changes might not be worth it.
2. Furnish Before Renting
From a tenant’s perspective, furnished properties are more attractive. This also creates room for you to list the rental at a higher price.
3. Be Visually Presentable
Aside from furnishing, another important aspect of presentation would be to make sure the ceiling and walls are well maintained and nicely painted.
Peeling walls is a great turn off for potential tenants. Jarring colours might also have a similar negative effect – so, stick to more neutral colours that most people would have no qualms with.
Choose durable types of material for flooring. It reduces maintenance costs and eases daily cleaning, a win-win for both tenants and yourself.
5. Neat Looking Kitchen
Consider inexpensive changes such as repainting cupboard doors, doorknobs, etc. The key idea is to give the kitchen a fresh look to increase appeal.
6. Upgrade The Bathroom
When choosing a place to rent, tenants would prioritise the location, the price, the bedroom, the kitchen and the bathroom.
Simple management and maintenance of the bathroom would help to increase appeal for your property. Areas of focus would include the toilet seat, tap, towel rack, and bathroom tiles.
Simple modifications like installing a rain shower can dramatically increase your rental appeal.
7. Partition an Extra Bedroom
If you are intending to rent out an entire apartment or house, adding a bedroom can increase your rental yield.
This is subjective to the rental market at that point in time. Since the market is ever-changing, it’ll be best to check the rental market for prices and determine if adding a bedroom would benefit you.
8. Lease Appliances to Tenants
You can consider setting a base rent which is slightly lower than market price, and then put electronics for lease to tenants.
You will need to determine the prices that balance reasonability and profitability. Such electronics can include extra standing fans, gaming consoles, computer monitors and screens, gaming chairs, private fridge, dryer etc.
9. Install a Dishwasher
Nobody likes to do the dishes!
Depending on the type of tenant you’re targeting, installing a dishwasher may be a worthwhile investment. This tends to appeal more to tenants who are younger and often busy with work.
10. Ceiling Fans and/or Air Conditioning
It’s always hot and humid in Singapore. Air-con is a must-have for most tenants. Ceiling fans in place of standing fans also add a touch of luxury and at the same time, frees up space for tenants to use.
Regular maintenance of these amenities is absolutely essential so ensure that it is done diligently.
11. Renew/Maintain Curtains & Blinds
Getting the right blinds/curtains will add to the overall look and appeal of the room. Also, because some tenants aren’t bothered with cleaning them often, be sure to get them cleaned before new tenants come in for viewing.
Curtains and blinds not only make your house look aesthetically pleasing, it also cools the house when the Sun comes up, making your tenant’s electricity cost lower.
12. Increase Safety & Security
As a tenant, safety and security is a key consideration.
Make sure that windows cannot be accessed from the outside and that upper floor windows are safe for children. Additional options include installing CCTV cameras or sensor lights outside of the main door.
On top of added security, consider investing in smart locks to increase convenience (no need for physical keys, and can be controlled remotely).
13. Increase Natural Light
Dark and gloomy rooms/hallways are often unappealing. Consider ways to increase the natural light entering the property and its rooms and make a good first impression.
Viable options include skylight, glass doors, open-concept kitchens, etc. Natural light improves mood and paints a pleasant picture.
14. Ease Storage Woes
Your tenants are going to need storage.
Remember to include a cupboard or cabinet in the bedroom, for tenants to use. A built-in wardrobe is ALWAYS welcomed.
Having storage readily available increases appeal to tenants as it eases the moving process.
Tip: sliding mirror doors help to make the space look wider than it actually is.
15. Maintain Doors
Maintain the property’s internal doors. Fix creaky doors and replace worn-out/broken doors.
16. Be Diligent on Maintenances
Maintenance should be consistently done.
There are some very simple things you can do to increase the value of a rental property. Perhaps the most important of which is to conduct regular checks, maintenance, and between-tenancy cleaning.
Make sure that appliances, electronics, furniture and fixtures are all in working condition and functioning well.
17. Your Home Exterior Matters
First impressions count.
Tidy up the shoe rack, keep the floor mat clean, make sure that the entrance is presentable. Consider adding a potted plant outside to add some liveliness.
18. Add Sitting Areas
If your property has a balcony, a patio, just an open space, then converting that into a sitting area would be an attractive sell to tenants.
Sitting spaces help tenants imagine living in said space. A picture that they would paint by themselves in their head!
19. Allow Tenants with Pets
By denying tenants of pets, you’re driving away a portion of the rental market.
In actuality, you could allow it as a privilege and charge a premium rental price (higher than market price but not exorbitant).
Keep in mind, however, that depending on the pet, fences and other pet-friendly structures may need to be accounted for.
20. Create Competition and Pressure
Instead of doing one-to-one viewing sessions, conduct mass viewings with multiple potential tenants at once.
Seeing the demand for your property will increase the urgency at which people make decisions.
Also, consider getting them to fill up forms indicating how much they’re willing to pay for rental so that you can assess and pick the most profitable deal.
21. Include value-added services
You can charge extra for a part-time cleaner to come over once a month or so if the service is needed and valued.
22. Keep Up With The Market
Seemingly small amounts add up.
The rental market is always changing, thus charging the same rental fee over a long period may result in large losses accumulated in the long run.
Keeping yourself updated with the market prices and making the appropriate adjustments to your rental fee will help you maximize your profits.
Your tenant is unlikely to move out just because of the fee increment since moving is a huge hassle and most other places are listed at similar prices.
23. Install Utility Savers
Keeping the tenant’s savings in consideration will make your property much more attractive. The lower bills create an extra incentive for them to rent your place.
Such utility savers include smart home systems like led lights, smart plugs, and smart air-conditioning.
Lights and air-con can be made to switch on and off at specific times of the day, so as to optimize electricity usage and balance comfort level.
Smart plugs can gauge electricity usage for appliances, which also helps with better allocating and reducing electricity bills.
24. Appeal To The Masses
When decorating and furnishing your rental property or rental room, it is important to remember that it is not you who will be staying there.
As such, it is best to stick to neutral and widely-accepted themes that appeal to large audiences.
Keep in mind: “Will this theme/piece of furniture put off other people?”
25. Green Spaces is Always Good
Consider including either real or faux plants when furnishing your property.
There are many benefits of having plants in the vicinity. They add life and color to the space, as well as boosts mood.
26. Maximise Your Tax Deductibles
Engage an accountant who specializes in handling property investments.
They will help you with claiming the tax deductibles you’re eligible for, hence reducing your tax bills. (Remember to keep receipts of your expenses paid)
Renting your place out is like owning your own business.
It is always important to get an edge over your competitors, and this is especially the case when there is a foreseeable surge of potential tenants.
We hope that this simple but comprehensive list of recommendations will go a long way in helping you stay ahead of the pack and reel in good tenants that will stay for a long time to come.