Let out property

I'm about renting out my apartment for the first time and I really concern or paranoid with irresponsible tenants.


My agent will say anything nice/perfect to close the deal, but should I find out more details on the tenants by myself? if so, how do I do that? ask their company to give reference?


My apartment is furnished with TV, Fridge, Washing Machine and others. When these electronics broken is it tenant responsibility to replace them or I should buy new one for them?


Thank you in advance

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I've rented out my flat lots of times. Here are some basic rules to follow: 1) Never rent out to someone who has a business or is not fully employed in Hong Kong. Business men and women are often looking for cheap alternatives to serviced apartments and they are used to missing payments or paying at the very last minute. They are often out of HK. If someone wishes to rent, take their name card then check the company in directory enquiries (not the number on the name card). Then phone up the company to see if that person still works there. It's easier to chase rental back payments by going to that person's place of work. You can also do a Google search on the person and the company. If you have doubts about the company, then don't rent 2) If you are renting out a small flat, try not to rent to couples or families (they can split up and say the other party should pay). If you have a large flat (ie for families or couples) then always make sure only one person's name is on the tenancy agreement - you then know who is responsble 3) Don't rent to smokers (as you will need to repaint the flat because of the smell) and don't allow pets (fleas and scratch marks) 4) Always rent for a minimum of 12 months. Short term renters are a pain and can easily leave without paying or trash your flat. If a long term tenant trashes your flat, then at least you have got quite a few months rent from him/her 5) Don't get worked up about electronics and fridges, they are very cheap. If you expect everything to be returned in pristine condition you shouldn't be in the renting business. You have to allow for reasonable 'wear and tear' 6) Always be polite and stay on good terms with the tenant. Once the person is in your flat, your options are limited. Avoid petty disputes and don't let things get personal. It's cheaper to take a loss with a bad tenant and get a new one in who is better than to fight through the courts. 7) Don't be too greedy. The golden rule is to get a good tenant into the flat and charge just below the market (say about 5-10%). That way the tenant is happy to pay and you are guaranteed a series of cash flows 8) Once you rent the flat out, it is a business and no longer your home. Don't be emotionally attached to your flat. You have to be a pimp and the flat your 'ho' (sorry but I can think of a better way of putting it - a lot of landlords go nuts about small items like broken lettuce crispers). Remember, repainting and refurbishment is very cheap in HK so damage to the flat is not such a great problem. Also, try to think like Cathay Pacific. Your flat is like an aeroplane that doesn't fly. You need to get people on board to make money and you will get good and bad passengers. You will, from time to time, need to clean up and refurbish. 9) Don't try to avoid paying property tax and make sure everything is done legally. Stamp duty, form CR-109 (I think that's the right number) 10) Don't furnish your flat with expensive items. By all means buy a CD player, but get a Samsung or a Chinese make instead of a Bang & Olufsun or Philips 11) Same applies for sofas. Keep decoration neutral and minimalist. You might love the 1970s but it's not to everyone's taste 12) Don't deduct from the deposit unless the place is badly damaged. It's always cheaper to get the old tenant out quickly and a new one in. If you bear petty grudges (which fortunately I'm too lazy to do), then try to imagine how many days in the month the tenant is actually working for you just to make the rent. That puts the broken lettuce crisper into perspective.

Agree with Geraldo, LGMV has an excellent advice.


Thank you so much for all the advices.

No need to take things out of proportion, if you use the right agent who have access to educated tenants, you are already in good shape, then you can always ask the tenant to provide you with a name card and or confirmation of employment where you can also state in the remarks of the provisional agreement, 'subject to autopay by the tenant' then one more time as a term in the formal agreement, once signed it's binding.

On top of that, if the agent you work with is professional enough, he can help you or even sign on your behalf a CR109 which allows you to claim missing rent via the lands tribunal very easily in case something 'goes wrong', basically all tenancy rules in Hong Kong are very favorable and leaning towards the landlord rather then the tenant.

If you want a good tenant, be sure you work with a good agent as usually it goes together.