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New to renting out

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  1. #1

    Join Date
    Jan 2016
    Posts
    732

    New to renting out

    Hello folks,

    My last 2 flights were canceled in as many months but hopefully next one will be ok fingers crossed. I've found a tenant for my residential property so I was hoping if experienced folks here would guide me on this.



    We've agreed on obligations regarding usual wear and tear and use of electrical appliances. What would be the norm usually with this though ? My main concern is what if the person , who is also a foreigner but on work permit, inflicts extensive damage, itentionally or otherwise , to the property and leaves hk. What are my options other than me footing the repair bill if the security bond is nowhere enough to cover it ? I do have a fire insurance policy in place.

    The rental amount is comparatively lower since we're leaving pretty soon and the flat is only 4 years old so it's quite a new property.


    Fyi, I believe I'm a decent bloke ( locals call me a dinosaur)and I have no intention to take advantage of anyone, let alone my potential tenant.

    Thanks


    EDIT:

    Any other suggestions would also be appreciated thanks heaps

    Last edited by Jaz Paul; 26-07-2020 at 03:12 PM.

  2. #2

    Join Date
    Jan 2010
    Posts
    6,452

    Get a landlord insurance to cover that scenario.

    Something like that, but go through CCW Global and not some insurance agent.


    https://www.prudential.com.hk/scws/p...ord/index.html

    Jaz Paul and MABinPengChau like this.

  3. #3

    Join Date
    Jan 2018
    Location
    Taiwan and HK
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    6,158

    You can also require that the tenant have renter's insurance, it is common in the US for the landlord to require this- I have a policy which covers things like the toilets overflowing and such (in case it is my negligence that causes the problem, not something like a pipe breaking). I think a one-year policy for me was about 400 HKD- also covers if someone gets injured by me (or my pets I think, although I have trouble imagining how my cats would go into attack mode).

    I rent out property in the US, there is always a certain amount of risk. One thing I do is (through my property manager) encourage tenants to report ANY issues, which are repaired immediately and I have never charged the tenant for any repairs so far. If they are afraid to tell me something is leaking for fear of getting charged, some real damage could be done- would rather repair or replace some leaky washing machine than have it damage the floors. An ounce of prevention is worth a pound of cure and all that....good luck with your rental!

    Jaz Paul and GentleGeorge like this.

  4. #4

    Join Date
    Jan 2016
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    Very useful info thanks @mrgoodkat and @MABinPengChau


  5. #5

    Join Date
    Oct 2012
    Posts
    6,531

    @MABinPengChau can you explain more about where you get the renters insurance from? This sounds handy and not too expensive.

    My two cents: it is just a concrete cube at the end of the day. Kind of like the LL requiring us to pay a $40k additional deposit because we have cats... It's hard to imagine what kind of damage could happen that would be so detrimental from a "bad tenant".

    Maybe avoid tenants with kids if you're concerned?

    Little side rant: I agree about encouraging them to speak up sooner rather than later. We -- as tenants -- recently had an issue with our AC leaking. We did some DIY jobs and that would get it working again for a bit. We didn't want to "bother" the LL and risk being considered bad tenants, as our lease is coming up, but on the other hand, I realized at some point letting the issue continue could lead to more serious damage which would be painful for the LL, if they had to replace the unit due to water damage. It's sorted now.


  6. #6

    Join Date
    Jan 2010
    Posts
    6,452

    @Elegiaque: CCW can definitely set you up. Most insurance companies should offer that, ours is from Circles Asia. Could also be called Home contents insurance. Price is gonna depend on the size of your flat and how much you want the limit to be. $400 is really cheap, mine is more than that per month, but it also includes liability insurance for ourselves, our pets and our maids.

    Elegiaque likes this.

  7. #7

    Join Date
    Jan 2018
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    Taiwan and HK
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    I think I got some huge introductory discount, then renewal was more- totally forget which one, I have to find the policy docs somewhere at work I think...

    Might be AIG- here is their policy calculator...it does depend on size, my flat is 470 net and maybe you can choose the value of your furniture- I know this exactly as it was an all-Ikea purchase as no one else delivers to Peng Chau- so could replace all my furniture for 20k HKD, my limits are low. No jewelry, no expensive electronics. Can add that in and also covers mobile phone theft and repair I think.

    https://www.aig.com.hk/personal/prem...hoCFO4QAvD_BwE

    Elegiaque likes this.

  8. #8

    Join Date
    Aug 2017
    Posts
    2,485

    $400/a is cheap. Does that include typhoon damage?

    We've a duplex rented back home rented out and right now are lucky to have 2 good tenants who both are responsible and are still able to pay their rent. Since I can't go back and inspect the property at will or easily hire people I'll give them some discounts when asking them to help take care of an issue.

    You may want to consider.a clause to deal with (gulp!) More pandemic and or serious economic /social issues....


  9. #9

    Join Date
    Jan 2016
    Posts
    732

    I am thinking of not involving an agent but I have no idea about the process and contract etc.

    Could anyone please provide a detailed process , thanks heaps