Many people believe that owning multiple properties and renting them out can be a lucrative source of passive income. However, this endeavour is not as straightforward as it may seem, as each tenant comes with their own quirks and can pose significant challenges for property owners.
Abdul Latif Ab Razak recently shared a story on Facebook about his parents' harrowing experience with a tenant who seemed to have come from hell, resulting in substantial financial losses.
The rental property in question is located in Taman Cempaka, Ipoh, which was initially expected to provide a steady stream of passive income. Unfortunately, the property has turned into a nightmare due to its deplorable condition, including a buildup of trash and numerous damages that need repair. The walls are also covered in graffiti left by the tenant.
Furthermore, Abdul Latif mentioned that they had to bear the costs of cleaning, overdue rent, unpaid utility bills, and repairs, which had accumulated to a staggering RM6,000, equivalent to a year's worth of rent.
To make matters worse, Abdul Latif and his family have faced similar incidents repeatedly while engaging in the rental property business. He emphasized that there should be no sympathy left for such tenants, as most of them take advantage of the generosity of property owners. Therefore, property owners must be firm in ensuring that tenants adhere to the agreed-upon terms and the law.
In light of this, he urged property owners to consider appointing a property advisor for rental transactions. This would help safeguard the rights of property owners, as anyone who rents a property should abide by the terms set forth in the rental agreement.
Property owners should also collect a security deposit, establish a formal contract, and keep detailed records of their tenants. In cases like the one described, legal action can be taken if necessary.