The Singapore property market has always had the hugest costs. It is expensive due to several reasons. The greatest factor that affects Singapore house prices is the fact that the demand for living space in Singapore is too high and the supply cannot catch up with Singapore as it has one of the densest populations in the world. Given that many individuals from all over the world want to reside in Singapore, the property market is exhibiting tight competition. The demand for a living space in Singapore continues to rise as its economy remains stable. Thus attracting more businesses and investments.
It is not news that we are currently facing a pandemic-induced recession globally. The pandemic has hit many countries, even the most stable ones were affected. Singapore was not spared from the ill-effects of the pandemic. Although, it has relatively remained stable compared to its neighboring countries. Out of all the countries in the world that are experiencing a recession, Singapore has been proven to be resilient. However, this doesn’t mean that goods and services in various markets were not affected. One of the most affected is the property market. Landlords of a cheap apartment for rent in Singapore are one of the sectors that have felt the effect of this. The effects of the recession on Singapore house prices can be mitigated and the impact can be lessened. Let us talk about 5 Things landlords must do to survive the Singapore recession
#1 Relaxed policies on maintenance and utility fees
Cheap apartments for rent in Singapore usually have higher maintenance fees. During the pandemic, a lot of businesses were shut down. Thus, a lot of jobs were also lost. This caused many individuals to be in a tight spot financially although the government has laid out support for its residents, sometimes this still is not enough. Landlords can keep their tenants if they have relaxed policies when it comes to the other feels like maintenance and utilities. If strict policies will still be implemented, a lot of tenants will opt to terminate lease contracts as they cannot continue paying high fees.
Relaxed maintenance policies can also attract more tenants that are looking for cheaper options because of the pandemic. These individuals are those who cannot continue paying high Singapore house prices and are looking for cheaper and more affordable options. This way, landlords will not lose their tenants.
#2 Don’t lower your rent impulsively
One mistake tenants make is lowering Singapore house prices or rent to keep the tenants. This shouldn’t be done immediately as it would only cause the landlords to lose more in the long run. As much as possible, lowering the rent is one of the last things that a landlord of a cheap apartment for rent in Singapore would do.
#3 Improve facilities
Lowering rent is not an immediate option. However, to make sure that your tenants are getting their money’s worth with high Singapore house prices, you can opt to just improve your facilities. Maybe add a simple garden. It can also be about tightening security. These are simple ways to make sure that they are getting what they are paying for with this, you can prevent your tenants from leaving.
#4 Give agents exclusive deals
One of the things you can do to increase your tenants and survive the effects of the recession is to give your agents exclusive deals. When your cheap apartment for rent in Singapore is open to all agents, the competition in selling is high. This makes it harder for the agent to acquire tenants. Choose your most trusted realtor and reward them with exclusive deals with your apartment. This way they can sell and market your apartment despite no changes in the Singapore house prices.
#5 Be an easy and communicative landlord
Last but not least is to be an easy and communicative landlord. This will give your tenants a sense of security and satisfaction. You must extend your understanding that these times are tough for everyone Thus, payment extensions are necessary. Your tenants might have been with you for a long time, therefore a certain trust was already built. Being harsh and rude to them now would only cause them to leave.
There are many ways to survive the current recession. Landlords of cheap apartment for rent in Singapore can do many things to prevent the harsh economical impacts. In SRX Property, we will guide you through this process