Malaysia borders opened on April 1st, 2022 and I became the victim as a landlord as I lose out my Malaysian tenants. They decided to end the 2 years tenancy earlier and forfeited all the security deposits and yet they have to reimburse the agent fees that I have paid ( big sum all together). They want to reallocate back to Johor and do daily commute to work in Singapore.
JK Holdings: 4-room HDB Rental (Toh Guan @ Jurong East): Year 2022 update (jkfund.blogspot.com)
Blessing in disguise.
My agent managed to find new tenants in 7 days time with 17.9% rental increment.
Just this year alone, the rental had been increased by 53.5%.
The rental yield now is 11.12%.
With forfeited security deposit, the rental yield will shoot through 12% this year. Crazy!
My new rental of S$3,300 is the highest in Toh Guan, Jurong East. My highest transaction will be the fifth case in Toh Guan.
Based on the HDB rental caveat shown below, there are already four units of 4-room flat rented out at S$3,300. That's the top 5% rental at the entire Toh Guan estate.
For the past 16 months transaction between February 2021 to May 2022, there are 80x four-room flat rental at Toh Guan estate. The median rental is S$2,200. The average rental is S$2,283.75.
As the LOI (Letter of Intent) had been signed, deposit had been received. I can now share the happiness.
Here are the timeline (based on my what's app timings):
May 24, 4.46 P.M. : Agent informed me that tenant would like to end the tenancy earlier.
May 26, 3.47 P.M. : Lease Termination Agreement letter signed.
May 28, 4.10 P.M. : One potential tenant offered and I agreed. Rental S$3,200.
May 29, 2.39 P.M. : LOI letter submitted to potential tenant for sign-off.
May 29, 5.58 P.M. : The potential tenant decided not to sign the LOI as they found other unit.
May 30, 10.05 P.M. : Second new potential tenant offered and I agreed. Rental S$3,300.
May 31, 1.46 P.M. : The LOI had been signed, deposit received. Done deal.
Hence, you can say we found the new tenant in 7 days.
When life gives you lemons, make lemonade !
Enjoy the drink!
