Since the establishment of Curtin University Malaysia in Miri in 2002, long term rental is getting popular in this urban area. More and more investors started to buy property in Miri and rent it out to undergraduates because they are more committed and generate more consistent passive income for investors. So, what do you really understand about long term rental , what are the benefits and some potential setbacks? If you are a new investor, read this article! In this article, Evernent as an experienced property management company based in Miri will have you covered with some basic and necessary information.

 

 

What Is Long Term Rental?

Long term rental typically refers to those properties which are rented out for a longer period of time which range from 30 days to months and years. No matter if the tenants are renting an entire house or just one room, tenants will need to take care of the utility bills such as water bill and electricity bill by themselves. Sometimes, there is no furniture coming along and tenants have to furnish the unit by themselves. Generally, tenants pay the owners at the beginning of each month. 

 

 

What Are The Benefits of Long Term Rental In Miri?

Easier For Management

No matter if you manage it by yourself or hire a property agent, long term rental can ease you in terms of management. The reason being is you don’t have to frequently advertise your vacant unit and go through all those tenant screening, selection processes all over again. Besides, you don’t have to take care of basic maintenance of your property. Generally, tenants will do the cleaning and maintenance such as air conditioner servicing, yard cleaning etc by themself.

 

Consistent Income

Long term rentals can offer you a more consistent income as there is less turnover. You know that you have a monthly rental income to rely on if you face any emergency cases. Hence, this can reduce your burden due to other expenses. Additionally, tenants usually need to pay their own utility bills such as water and electricity bills which means you don’t have to spend your money on the rented property.

 

May Not Need To Furnish 

Another benefit about long term rental is you may not need to furnish your property. Some of the long term renters move in with their own furniture such as cabinet, sofa, bed, washing machine etc. So you can save your money by just doing some simple furnishing or just leave all the furnishing work to tenants. At the same time, you still can get a monthly rental payment from them.

 

 

What Are The Potential Setbacks of Long Term Rental In Miri?

Less Control Over The Property

It is common that the owner has less control over the long term rented property. Unlike short term rental, you are able to inspect and check your property after every guest check out. However, long term renters are usually looking for stability and home-feel property. Frequent inspection may cause the tenants to feel uncomfortable and troublesome.Besides, you may consider to give a 24 hours notice before you inspect your house so that tenants may feel more ease for your coming.

Time Consuming Process To Get A Right Tenant

Another potential setback is the tenant recruitment and selection processes are very time and labour consuming. In order to get a best fit tenant, you have to do a background check of each potential tenant. Sometimes, when you finally select the preferred tenant, but the selected tenant turns out to reject you due to different reasons.

 

Less Earning Potential

During peak seasons such as holidays and weekends, earning potential of rental units is higher compared to off peak seasons. However, this is not applicable to long term rental property. Reason being is that you can’t ask your current tenant to leave the property during holidays or weekends for you to do short term rental. This is a very unrespectful action to your tenant and may result in dissatisfaction of current tenants. 

 

In conclusion, no matter if you’re planning to invest or just started to invest in long term rental, you have to do more research on your property’s location and size to ensure that the property is best fit for long term rental instead of short term rental.

With Evernent, we can help you to manage your rental properties, no matter short term or long term, Our professional team will solve your issues and ensure the best ROI for you.