Sub-Rent of Apartments/ Landed Properties

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Sub-Rent of Apartments/ Landed Properties

Postby avch26 » Mon May 30, 2011 1:12 am

Hi Dennis,
I remember hearing about a person renting out an apartment from the owner, and then sub-renting it out to some foreigners.
I went to ask a relative, a property agent, who mentioned that many people know of such a tactic, but many people do not go about doing it. Yes, it is legal.

[i]Difficulties in Sub-Let:[/i]
1) You need to gain approval from the owner that you are going to do so. In this case, most owners do not approve of it.
2) Owners, may charge you higher rental prices.
3) You need to look for tenants to stay in that apartment, you would also incur additional cost to pay to agents fee.
4) Looking for good/reasonable location so people will want to rent.
5) For those owners, who may allow you to sub-let, their property mostly are those old, run-down properties, which you may need to spend a sum of money to renovate/do it up, before you can sub-let.

However, my property agent relative, mentioned that it is illegal to do room partition, meaning putting additional partition walls, so as to fit in more people in the room, so as to get more rental.

But on the other hand, I heard from some people who mention like it sounds easy to do this sub-letting of property.

How do you overcome all those difficulties listed out?
Or is there a better way of doing things?
Thank you.
avch26
Senior Forum Member
 
Posts: 13
Joined: Thu Apr 21, 2011 11:53 am

Re: Sub-Rent of Apartments/ Landed Properties

Postby Dennis Ng » Mon May 30, 2011 8:34 am

avch26 wrote:Hi Dennis,
I remember hearing about a person renting out an apartment from the owner, and then sub-renting it out to some foreigners.
I went to ask a relative, a property agent, who mentioned that many people know of such a tactic, but many people do not go about doing it. Yes, it is legal.

Difficulties in Sub-Let:
1) You need to gain approval from the owner that you are going to do so. In this case, most owners do not approve of it.
2) Owners, may charge you higher rental prices.
3) You need to look for tenants to stay in that apartment, you would also incur additional cost to pay to agents fee.
4) Looking for good/reasonable location so people will want to rent.
5) For those owners, who may allow you to sub-let, their property mostly are those old, run-down properties, which you may need to spend a sum of money to renovate/do it up, before you can sub-let.

However, my property agent relative, mentioned that it is illegal to do room partition, meaning putting additional partition walls, so as to fit in more people in the room, so as to get more rental.

But on the other hand, I heard from some people who mention like it sounds easy to do this sub-letting of property.

How do you overcome all those difficulties listed out?
Or is there a better way of doing things?
Thank you.


Hi avch26,

My simple answer to you is it can be done and has been done by people as I have shared.

You listed out all the so-called difficulties but do you mean that just becos there might be some difficulty that you don't even bother trying?

Analyse, analyse, analyse, guess you're stuck in this "mode" and this is one big stumbling block to you getting Richer. (Sorry, I"m just frank, not trying to offend).

Learn to take action, review, improve, then take action. This is how I reached Millionaire status, not by analysing, analysing, analysing.

For old apartments with a very big living room, to partition and add in just 1 bedroom is very acceptable to sub-tenants. The landlord will NOT bother to check if you choose your sub-tenants carefully and create no trouble for the landlord.

In worst case scenario if Landlord insist, just tear down the partition (Partition wall cost maybe $500 to put up).
Cheers!

Dennis Ng - When You Master Your Finances, You Master Your Destiny

Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
Dennis Ng
Site Admin
 
Posts: 9781
Joined: Tue Nov 29, 2005 7:16 am
Location: Singapore

Postby avch26 » Tue May 31, 2011 12:38 am

Thank you Master Dennis for your reply.

I believe that there are those who have done the sub-let successfully.
Instead of difficulties, I should see it as challenges.

I hope that those of you who have done it successfully, can list down the challenges that you faced and how you went about overcoming the challenges.
Your reply will be highly appreciated, so that more people can learn and admire the effort that you guys took to do it.

Thank you. :)
avch26
Senior Forum Member
 
Posts: 13
Joined: Thu Apr 21, 2011 11:53 am


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