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Tenancy agreements

Q: I hope to rent out my property but I am not too sure about tenancy agreements. Are there standard-type agreements or can I add some terms like ‘do not nail on the wall’ or ‘repair it before moving out’ or other responsibilities? My previous tenancy experience was not a pleasant one as the tenant who wanted to move out just told me to deduct the rent from the deposit they paid during the start of the tenancy. When they moved out, I found that my house was seriously damaged. I could not help but think that if I did not deduct the rent from the deposit, I could have used the money to cover repair cost and to reduce my losses. How do I protect myself? Can I reject the request to deduct the final rent from the deposit? Can I request the previous tenant to foot the cost of the repairs? Please advice.

A: Tenancy agreements are tailor made. In actual fact, even tenants can requests for some terms to be placed into the agreement, and it is entirely up to both parties (the landlord and tenant) to agree on it. Should the terms not be agreeable on either side, then the deal should not even go through.

A: There are no such things as standard tenancy agreements and clauses can be added from either side. It is only when both parties agree on the set clauses then should the property be let out. As for the deposit, the money is normally used to offset the cost of agreeable repairs or maybe even unpaid utility bills that the tenant might have not paid. The balance from the deposit is then returned to the client. Putting in a clause in your tenancy agreement can restrict the use of the deposit to pay for the final rent. Remember, it is always better to protect yourself.

Q: An agent told me that I might not be able to always obtain 90% loan for subsale properties. His reason given was that banks have property valuers that will evaluate the market value of properties and then only decide on a maximum allowable loan amount based on their perceived valuation. Is this the case?

A: Yes, this is true. Subsale properties in the market are driven by supply and demand, and can be priced above their maximum valuation by banks. It is usually in this case that the approved loan will be less than 90% of the subsale purchase price. Therefore, it is always advisable to have at least 20-30% cash available on hand if not for miscellaneous costs like lawyer fees, stamp duty, minor repairs and such. You may want to seek the opinion of a valuer on the property first to estimate the amount of cash needed.

Changing to gated and guarded

Q: Recently my neighbourhood residential committee has been urging us houseowners to convert our old residential area into a gated and guarded one by installing barriers and guardhouses. I am not too sure if this is a good idea as I have read from newspaper reports that some guards are untrained and do not do much to improve security. Furthermore, I am concerned that installing these barriers in my housing area will actually restrict movement and create unnecessary congestion at entry/exit points. What should I do to address my concerns?

A: Every houseowner has a right to voice out their concerns on matters that happen in their neighbourhood. The best way to deal with your concerns is to engage in a dialogue with your neighbourhood residential committee members and attend their residents meetings to discuss what is best for the community.

Hijacked parking at condominium

Q: The condominium unit I purchased comes with two allocated side-by-side car parks. So far, I have been only using one of the car parks and left the other one empty. Recently though, I found out that the building management have given my unused lot to another resident without notifying me. What should I do?

A: Contact your condominium management and show them your signed documents that the car park lots belong to your condominium unit. It is their responsibility to rectify the situation and inform the other resident of their mistake.