What’s the Rush ? Prospective tenants that may spell trouble !

Picture this.  As a real estate negotiator you have been given the responsibility to market and advertise the properties given by the seller or landlord. So you happily place the relevant information on the available property platforms with the aim to generate enquries.

One day, you received a call. A really serious prospect in search of a home urgently.  As part of your due diligence, you screen through the prospect as best as you can and concluded that he is a perfect fit to rent the property. You then excitedly inform the owner and all the transaction process was concluded within two days, including collection of full deposits and signing of tenancy agreements. Case closed. Tenant moved in. Landlord is relieved that the property is finally rented out to help with loan repayment. And of course as the closing negotiator, you are rewarded with your agreed professional fees.

Moving forward 4 to 6 months, you get a frantic call from the Landlord.  Distressed over unpaid rent for few months. Calls and messages to tenant was initially conveyed with a promise to pay the following month but they were just empty promises. When it is due again, messages and calls were ignored. And rental continues to pile up as the months go by. Visits to the house was unsuccessful, warning letters sent were unattended. Neighbours have no knowledge on the tenants (as they kept to themselves often).  As a last resort, Landlord engages a lawyer to issue an eviction notice. Tenant finally vacated the property but unfortunately left behind a huge sum of unsettled utility bills and months of rental that could not be repaid.

Sounds too familiar ?

So to avoid these from happening, do take heed the following warning signs :

•  Urgency to move in. Exercise caution to determine the reason for the move.
•  Seemed very eager to pay the deposits and will accommodate to Landlord’s request without any hesitation or objection.
•  Ask the prospect to provide their current Landlord’s contact number as a reference check.
•  Exercise caution when prospects shares they are into own business. Do a background check on the company name and status.
•    Ensure tenant’s documents and particulars are in place before entering into a transaction.
•  Apply practical wisdom. If in doubt, refrain from the transaction or seek professional advice.

Lastly, seek to carry out your responsibility as a negotiator with integrity, professionalism and within the guidelines laid down by The Board of Valuers, Appraisers and Estate Agents Malaysia .