How do I rent out my studio condo when I work abroad?

[teddybear]

Don't anyhow say lah!

1 of my tenant completed tenancy and vacated my unit in Sep this year.
In Oct I already had a new tenant moved in (for a turn around time of just 1 month) with just a slight drop in rental!

So it is clear that rental market may have indeed soften, it has not collapsed!
May be rental market may have collapsed for your OCR private properties, but definitely not for my CCR private properties!
But isn't this what I have warned again and again since 2009 (but you stubbornly refused to heed my advice)?!

The rental market has completely collapsed. We rented out our condo for $5,000 4 years ago. After the last tenant moved out in June, we have not been able to get a new one, even after we reduced our asking rate to $3,900. We plan to cut it to $3,000 to get a bite. That is a 40% collapse. In any other country, when rental rates fall 40%, the economy would soon sour. Let's see whether that is true or not in Singapore.

[stalingrad]

Don't anyhow say lah!

1 of my tenant completed tenancy and vacated my unit in Sep this year.
In Oct I already had a new tenant moved in (for a turn around time of just 1 month) with just a slight drop in rental!

So it is clear that rental market may have indeed soften, it has not collapsed!
May be rental market may have collapsed for your OCR private properties, but definitely not for my CCR private properties!
But isn't this what I have warned again and again since 2009 (but you stubbornly refused to heed my advice)?!

You are right, teddy. But at this moment, our problem is we don't live in Singapore, and its hard to try to find a renter when you don't live there because the agents are just not doing their job.

[stalingrad]

sorry to hear that. btw may I just ask, at $3000 p/m, what's your gross yield? (just trying to get a clearer picture, you don't have to answer ).

anyway hope your unit gets rented out soon.

3,000 is not bad, given that we bought the condo in 2007 and paid a reasonable price. gross yield would be close to 5%.

[Kelonguni]

Well then, this is a non issue.

There are some with the cost of housing almost double yours and renting for 3K only as well. Only difference is new.

I am sure in 2007, the rent you could fetch was most probably lower than 3K.

3,000 is not bad, given that we bought the condo in 2007 and paid a reasonable price. gross yield would be close to 5%.

[PropVestor]

3,000 is not bad, given that we bought the condo in 2007 and paid a reasonable price. gross yield would be close to 5%.

My question is for 10 years, what is the upkeep for this apartment? There must be a reason for such a 'low ball' figure against your fellow units in the area. When I mean upkeep, I also refer to the management who does the maintenance of the shared space over and above your own.

When you are not in SG, you will have to depend on someone you trust to manage the lease. If you do not have, I think you have to manage your expectations too.

2 cents,
PropVestor

[tonymontana]

3,000 is not bad, given that we bought the condo in 2007 and paid a reasonable price. gross yield would be close to 5%.

in that case, may I humbly point out to you that your rental has not actually collapsed, but that rates have merely NORMALIZED. My burning question is not why your rental is now 3k+ p.m, but how did you manage to rent out the same unit at 5K per month! It must have been a huge supply crunch in that location during the super good times (circa 2010-2011?) Or perhaps there was something unique about that tenant, or perhaps your unit itself?

I also think you could probably find a tenant for 3,500$ p.m now. Just be a bit patient?

As they say, some view the glass as half empty.

[tonymontana]

Well then, this is a non issue.

There are some with the cost of housing almost double yours and renting for 3K only as well. Only difference is new.

I am sure in 2007, the rent you could fetch was most probably lower than 3K.

rents were worse in 2003-2006, if i recall.

so i think stalingrads stry goes something like this:
2007 bought the unit brand new
stayed for 3 years
2010 went overseas, rented out at peak period - 5k, unit fully furnished, wonderful and fresh
now 2017 apartment a tad tired, rental drop.

[stalingrad]

in that case, may I humbly point out to you that your rental has not actually collapsed, but that rates have merely NORMALIZED. My burning question is not why your rental is now 3k+ p.m, but how did you manage to rent out the same unit at 5K per month! It must have been a huge supply crunch in that location during the super good times (circa 2010-2011?) Or perhaps there was something unique about that tenant, or perhaps your unit itself?

I also think you could probably find a tenant for 3,500$ p.m now. Just be a bit patient?

As they say, some view the glass as half empty.

We left Singapore in 2013 and rented out our condo for two years for $5k per month, and got the lease renewed in 2015. Just blind luck? I don't know. But we are hard put to find a tenant for even $3,500 now. The market is bad, at least in our area.

I am not desperate as we have no mortgage, but just to get a bit of cash flow to pay management fees and such, getting a tenant for $3,000 is not bad. I entered the discussion in this thread to just show how bad the market is. The MAS is right, the rental and sale markets are bifurcated. While the latter is booming, the former is crashing. When there is bifurcation, watch out for irrational exuberance on the sale side.

[stalingrad]

No, we bought it in 2007 before the project was built. TOP(?) was in 2010. Moved in in 2011 and moved out of Singapore in 2013.

[Kelonguni]

This bifurcation may occur for a while until those "new" units bought between 2013 and 2018 equilibrate in term of occupancy, and the new units of 2018 lead the next crazy prices and pull up the rental from that end. Right now, it's hard to predict as the market is still flooded with enbloc sellers buying at 2017 prices and some unsold units.

We left Singapore in 2013 and rented out our condo for two years for $5k per month, and got the lease renewed in 2015. Just blind luck? I don't know. But we are hard put to find a tenant for even $3,500 now. The market is bad, at least in our area.

I am not desperate as we have no mortgage, but just to get a bit of cash flow to pay management fees and such, getting a tenant for $3,000 is not bad. I entered the discussion in this thread to just show how bad the market is. The MAS is right, the rental and sale markets are bifurcated. While the latter is booming, the former is crashing. When there is bifurcation, watch out for irrational exuberance on the sale side.

[buyer_east]

You are right, teddy. But at this moment, our problem is we don't live in Singapore, and its hard to try to find a renter when you don't live there because the agents are just not doing their job.

if agent don't find tenant for you, will you pay commission to them for the vacant months?

[buyer_east]

We left Singapore in 2013 and rented out our condo for two years for $5k per month, and got the lease renewed in 2015. Just blind luck? I don't know. But we are hard put to find a tenant for even $3,500 now. The market is bad, at least in our area.

I am not desperate as we have no mortgage, but just to get a bit of cash flow to pay management fees and such, getting a tenant for $3,000 is not bad. I entered the discussion in this thread to just show how bad the market is. The MAS is right, the rental and sale markets are bifurcated. While the latter is booming, the former is crashing. When there is bifurcation, watch out for irrational exuberance on the sale side.

entrust your condo to me? i take 10% of the rental like the property management companies.
i will work very hard to ensure there is tenant as my cut is directly tied to the rental income.

[HP65]

in that case, may I humbly point out to you that your rental has not actually collapsed, but that rates have merely NORMALIZED. My burning question is not why your rental is now 3k+ p.m, but how did you manage to rent out the same unit at 5K per month! It must have been a huge supply crunch in that location during the super good times (circa 2010-2011?) Or perhaps there was something unique about that tenant, or perhaps your unit itself?

I also think you could probably find a tenant for 3,500$ p.m now. Just be a bit patient?

As they say, some view the glass as half empty.

This loser cant be trusted. The condo he is talking about is Carabelle. For years he has been talking down Sg ppty and keep saying Sg ppty is over-priced, yield is low etc.

He is at it again trying to paint a gloom picture. He missed the boat in 2009 trying to swap his Carabelle for a D10 ppty so he is still sour till this day. His ppty is at least a 3-bedder and one can easily find from SRX, PptyGuru and URA the transacted rental for 3-bedders are easily above $3.3K. Even a 2-bedder was rented out at $3.3k (maybe fully furnished). Unless his unit is so badly maintained and he does not want to repair the wear and tear but then it’s not that the market is bad but there are specific issues with his unit in question.

As for $5k in 2013, I also find it hard to believe. He probably inflated the numbers to exaggerate the gap between then and now.