Good or Bad Investment
Most people seemed to think that renting out property is a means of steady revenue in your old age. Maybe this is true for commercial. For residential property, I really have my reservations based on my experience. 
I have a house which I rented out. (Mind you only one; unlike some people who invested in a number - it’s a wonder how they coped. Probably they never had such problems.) The first tenant occupied the house for less than a year. Though she paid on due date but left me enough hassle to exhaust the little rental collected over her short stay. The doors and kitchen cabinets had to be repaired, thanks to her seven pet dogs who made such “deep impressions” and “carvings” on them. They also made sure that they choked up the mosquito netting and ventilation with their hairs. 
It took us 2 full days to vacuum and clean up the house. Arrears in utilities bills came to a whopping four figure. Mind you, this tenant was recommended by my neighbour’s friend!
Once beaten twice shy so I decided to use broker instead of friend’s introduction. The first month’s rental went to the broker for her services. Well, to think that after the big cleanup, paying the broker, settling all the documentation and the new tenant has moved in, I could sit back and relax? Dream on! 
The first call came after two weeks – there was some strange odor from the sink and the kitchen roof was leaking. So I called in my contractor to rectify the problems and of course at a price. Next, came another call. This time the pipe was leaking and ended up having to redo the water piping system for the whole house. All these repairs already put a big dent in my pocket. On top of this, the shuttling back and forth to the Water Works Dept over the water charges incurred as a result of the burst pipe – another whopping RM900.00! 
With all the hassle and expenses incurred to upkeep the house I’m truly skeptical if renting houses is such a lucrative deal. Or is it just my luck! 
This entry was posted on Saturday, October 23rd, 2004 at 5:15 pm and is filed under General.
