The right property with the wrong tenant is the wrong Property
You may follow all the guideline given on how to buy the LOWEST priced property in the BEST location. You have done it successfully and everything right until you collect your key and ready to look for the tenant. The nightmare will begin if you let the wrong Tenant move into your BEST rental property.
11 years ago when I moved back to Malaysia for good, there is an additional room available to rent. I need to rent out the room since I will not having any income to pay my HDB house installment. My house is 10 minutes to Simei MRT station and Simei Shopping mall. Another 15 minutes to SIA training academy. 1 minutes to the PIE expressway and 5 mins to TPE expressway.
My sister rent out to a middle age man who work as coffee shop helper for $250 per month. Yes, $250 per month for a common room in the walkway 11 years ago. If today, it will be $600 per month. Let’s called him Mr Sung. He is soft spoken and quite. Overall he should be a good tenant with stable job. Bear in mind that I am not learnt on how to filter the tenant yet at that young age.
First 3 months, he pay his rent promptly. Take care of the room and house nicely. My problem began on the forth month, Mr Sung start to came back late and delayed for the first time by two weeks. My sister did not probe further on his problem face. That could be my false as never look into his problem early enough.
When reached fifth month, Mr Sung is disappeared! My sister did not see him since then. However, his room still have his personal belonging. Initial first few days, my sister thinking that he went for holidays or take a short break in Malaysia or Batam island. However, after one whole month never see him and rental was due, something is wrong with this guy. And yet, we cannot do much thing, still left the room for another month. He did not appeared at all. So we decide to move his personal belonging to aside just in case he coming back to take his stuff.
When I am writing this article and thinking back, it was a scary incident. What if something happen to him? We do not know the reason behind of his disappearance. We do not have his other contact as well as his other family or friends too. We do not signed any tenancy agreement, rental applications form etc.
The only grateful is he “moved” out quietly and do not caused any complications. The only losses is the 2 month rental. That is really Thank GOD.