Selling with Tenancy?

Here I would like to relate an unfortunate experience of a close friend who bought a property with existing tenancy.  The tenancy was supposed to be valid until Dec 2012.  By the time my friend completed the whole process, he got the keys in late November 2012, with about 1 more year to go.

Recently he received a written notice from the tenant, stating that he wish to move out in Jan 2012, and therefore is giving 2 months' notice.  My friend immediately consulted me, and I said surely in the tenancy agreement, there must be a penalty clause for early termination.  In fact, there was none, the clause just says the tenant has to give 2 month's written notice, no penalty, no forfeiture of security deposit etc.

My friend was shocked, and upon a second look, we notice that the tenancy agreement was not even stamped at LHDN.  So he realized that he has been cheated.  What was supposed to be tenancy agreement was maybe a fraudulent piece of document that was created simply for the sale of the property.  The clause for termination was very loose and the agreement also not stamped.

So far I have advised my friend to seek the help of his lawyer to get the 2 months' security deposit that was not even handed over to him (he was told to get it from the tenant himself as the security deposit has been used by the owner to offset the previous 2 months' rental).

By now, my friend realized that the whole thing was a scam that was planned from the beginning.  The tenant and the owner were in cahoots, with a false tenancy agreement, and plans to quickly move out once the handover has taken place.

Lesson learnt: Check the tenancy agreement before buying, make sure the clauses are airtight.

Tenant Out, Tenant In

A little good news to share, which I am very thankful about.  One of my tenants in SD Tiara is moving out end Dec 2011.  So I started to advertise about a week ago, and thankfully today a tenant came to view and paid a booking deposit on the room.  He works in an agency that is in Sri Damansara itself, so it is very convenient for him. We promised to meet again early January to sign the tenancy agreement and hand over the keys.
Meanwhile, I had a look at the apartment and nearly fainted.  Bachelors staying in the house do not know how to keep clean.  I will try to do them a favour by having a thorough cleanup at the end of this month.

Lend a Helping Hand 1, 2011

Dreams can come true.  Through the hard work and effort of the Property N Co members, finally we realized our dream about doing something for charity and at the same time benefiting others through our knowledge sharing.
The event was reported in the NST today: Bloggers hold seminar for charity.
To fellow bloggers, Anie and Fara, congratulations and great job!
I've named this post Lend a Helping Hand 1.  Because I believe there will be 2,3,4 etc subsequently.

Tenancy Agreement - Early Termination

Here's my first experience of dealing with "expat" Iranian family tenants.  After renting my condominium unit for 1 month, and paying the 1st rental (because the earlier rental was given as agent's commission), they suddenly tell me that they would like to move out.  By then, the agreement was stamped with a tight clause, that early termination means forfeiture of 2 months' deposit.

The family keep on bugging me to let them off the hook, I had so much problems because now I would have to engage the agent to get another tenant and lose another months' rental in commissions.   Actually, they were a very nice family of 2 couple and 2 children in their early 20's (studying in Malaysia) and I could not understand why they suddenly want to do that.  Then I found out that the Dad had a heart attack, and was admitted to hospital, and wanted to be transferred back to Iran for the medical follow up.
So, I had to let them go, but we were still negotiating the deposit return terms.
Thankfully, everything worked out well.  It turns out that they had a cousin from Iran who was coming to Malaysia under the MM2H program.  So the cousin and his wife, just took over the whole tenancy from them, and I get to keep my deposits (they just paid the deposit to the 1st family).  So no loss of rental, no loss of another month's agent commission.  Just to cancel the first agreement and do up a new agreement with new stamping.
Sometimes, things all fall into place.  Again, I am grateful for the ups and downs as a landlady.

Lend a Helping Hand 2011

OK, OK, I know I have had a terribly poor control of my time, rendering neglect of my blog.  To my readers out there, really sorry.
Anyway, today our gang met up to refine the details for the exciting upcoming charity event, and I was chided by fellow members for this very serious "sin".  So I have decided to spring back into action.  Less than 1 week to event, hope all of you readers can reach out to support a worthy cause while learning a tip or two about property investments.
Thanks for all your encouragement, readers, see you at the event.

For more information & registration, visit Property N Co.

Extra Guest in the House Part 2

Image from http://www.easyvectors.com/browse/human/travelling-vector-30

Continuing from my immediate previous post, after I sent the email to evict the extra guest in the house, I got an immediate reply.  He explained that the guest was his little brother, and that the brother was on short-term training in KL.  As a big brother, he allowed his brother to stay with him.  His tone was none too happy, he claimed that if his brother was staying for long term, he would have moved out to rent another place together.
Anyway, just the day before, the training ended and his brother had left for overseas work after the training.
So the problem was settled instantaneously. Even if I was too late informing him, it is good I establish some rules so that he is aware of it already.
Since the brother had left, I decided not to argue and be too harsh about the situation, and just thank my tenant for his kind understanding.  Phew! Case closed too.

Extra Guest in the House

Image from http://thelandlorddiaries.com/?p=86

Yesterday one of my tenants called me to complain about his house-mate who have had a guest staying in the apartment for over 3 months.  The guest is apparently my tenant's brother who is "squatting" in the apartment living room.  While they all do not mind the occasional guest or relative coming to stay over sometimes, a long term guest in the living room is not acceptable.
How to approach this problem?  I wrote an email to my tenant, asking for the guest to leave within 2 weeks.  If he does not reply within 2 days, I will give him a call to discuss.  He has been a good paymaster all this while and the tenancy is due for renewal in 2 months.
Anyone of you have any suggestions for me?
BTW if the squatter look like anything in the photo here, I will send the blogger/property investor/manager eun-yong to settle the problem for me, hahahaha!