How to Rent Out Your Apartment at a Great Price

The Singapore housing market has been quite dynamic as of late. Soaring house prices and rising interest rates have made the cost of buying a home in Singapore more expensive than ever before.

Over the past couple of years, landlords have been able to fetch high rents to cover the rising mortgage burden. However, much to their dismay, the Singapore rental market has started to soften. Condominium rents dipped for six consecutive months  from August 2023 to January 2024, negating most of the growth in rents experienced in the first half of 2023.

There is nothing we as individuals can do to shift market trends. As a landlord, you may need to have a more realistic expectation when it comes to setting your prices moving forward. That being said, there are still some little tricks you can use to increase the probability of renting out your property at a great price.

Related: Average Cost of Renting a HDB Flat in Singapore

Location

Location is often a huge influencing factor when it comes to property prices. While homes in the central region are often able to maintain their premium due to the location, do not be disheartened if your apartment is not in the prime area. This is because the “ideal’ location is different for everyone.

Take for example, there are an increasing number of commercial centres in the outskirts of Singapore, such as Changi Business Park and Woodlands Bizhub. Expats who work in these areas will be looking for apartments in these areas instead of the in the Central Business District (CBD).

Think about how the location of your apartment can appeal to specific demographics. Highlight nearby transportation that can allow your potential tenants travel conveniently to certain areas. If your place is some distance away from the main road or MRT, you can emphasise the peacefulness of the surroundings.

It helps if you know your target tenant so that you can ‘sell’ your apartment better. For example, if you see that the visiting Korean tenant is renting the apartment for his family with a school-going child, highlight some features that could be relevant to his lifestyle. For instance, are there schools nearby? Or perhaps some delicious Korean restaurants and supermarkets in the area? Small things like this can impact the decision to rent. At the end of the day, it’s about bringing out your location’s unique selling point!

Related: Choosing Between An HDB Flat And A Condominium – The Deciding Factors

Photos can make a difference

When you advertise for your apartment online, the first thing that a potential tenant will see is pictures of your apartment. This is why it is so important to take a good picture. Ensure that the rooms are bright and make an effort to tidy up your place, and even spruce it up with decorations to make it look cosy during the photoshoot.

Taking the effort to stage your rental apartment can make all the difference on your potential tenants ability to envision themselves living in your apartment. Most tenants would gauge by the picture to decide whether they should even view the apartment. In order to ask for a decent price and have a higher probability of rental, invest some time and money into staging your apartment.

Related: Simple Ways To Increase The Value Of Your Home Before Selling It

Provide Basic furnishing

If your target tenants are professionals working in Singapore, you might want to consider providing some basic furnishing instead of showcasing an empty room or apartment.

Everyone wants to feel comfortable at home, even if it is a rental place. Take some effort to furnish the rooms so that it makes people feel at home. Keeping the place well-furnished can increase its value. This does not mean spending a 5-figure sum on doing up complex renovations. Instead, simple improvements like giving your place a fresh coat of paint or replacing an old table or chair can do wonders for the home. The furniture will also last a good couple of years, so they can be considered as investments for future tenants as well.

Related: Average Cost of Home Contents in Singapore 2024

Consider Renovating Your Apartment

According to ValueChampion’s research, the average cost of home renovation for a 4-room HDB flat is around S$45,600. While this cost represents comprehensive remodelling, you could also consider doing much simpler renovations that just involve high usage areas like the kitchen or the bedroom.

Renovating your home’s design and/or appliances could be a significantly value-additive investment for increasing your apartment’s rent. Not only that, you could easily recoup this cost and more through a meaningful increase in rent as well as resale value.

Related: Best Renovation Loans in Singapore 2024

Be Flexible In Your Terms & Conditions

With falling rents, tenants may try to secure a shorter lease in order to take advantage of potential further dips in rental prices. You may find that most may ask for a 1-year contract instead of the usual 2-year term. While it may be more convenient to take on a longer term contract, remember that if you miss out on this one, you may have to let your apartment vacant till you find someone who fits your terms and conditions, resulting in a loss of rental income. So flexibility is the way to go.

If you are just renting out a room, it is also good to be a little flexible with regards to the use of common spaces like the kitchen. Some landlords do not like their tenants to use the kitchen as they assume it would be messy in the kitchen. Keep an open mind and remember that everyone likes a pleasant living environment, so the freedom to be able to do what they want within reasonable limits is a sure way to make you look like a better landlord to rent from.

If you are a prospective landlord still on the market for a competitive home loan to finance your investment property, make sure to check out our round up of the best housing loans in Singapore. 

Read More:

• How to Handle Mortgage Stress and Reduce Debt
• Real Estate Investment: How to Build a Solid Property Portfolio
• 6 Hidden Costs of Home Renovation & How to Avoid Them
• Top 5 Tips to Make Your Bathroom Renovation Worth the Cost
• 4 Kitchen Renovation Tips to Save on Total Cost

Cover image source: Unsplash