This article highlights the importance of due diligence when working with an REN, drawing on the concerning experiences of two Cyberjaya property owners and a tenant. To protect the privacy of those involved, specific details regarding the REN and the service apartments have been omitted.
A Broken Trust: A Trail of Deception and Financial Woes
Story 1: Damaged Property and Unpaid Rent
One owner, who wishes to remain anonymous, rented out their Cyberjaya service apartment through a rental administration service. Unfortunately, the experience turned sour. Upon retrieving their property, the owner discovered it in a “very bad condition,” with photographic evidence to support the claim.
Furthermore, the owner alleges that the rental administration service withheld rent for a month and failed to pay outstanding utility bills. The security deposit wasn’t enough to cover the damages and unpaid bills. Attempts to reach the rental administration service provider proved unsuccessful.
The owner shared their experience as a warning to other Cyberjaya property owners, urging them to carefully vet any rental administration services they consider.
Story 2: Fabricated Tenant and Hidden Expenses
Another Cyberjaya property owner recounted a similar story. The REN allegedly fabricated a story about a new tenant replacing the existing tenant after their one-year contract ended. The owner specifically refused to rent to an Airbnb company, but the rental administration service allegedly assured them the new tenant would only use the unit for storage.
However, a month after the supposed “new tenant” moved in, the owner requested a routine inspection. Shockingly, upon arrival, they discovered the original tenant still occupying the unit. The owner had unknowingly been receiving rent payments under a different name.
Further investigation revealed that the owner likely unknowingly contracted with a company operated by the REN. The owner suspects the rent payments were collected from the existing tenant, deposited into the REN’s company account, and then forwarded to the owner while concealing the truth. The owner also alleges that the rent was raised without their knowledge and skipped paying rent for the supposed vacancy period between tenants. Since then, all attempts to reach the REN have been unsuccessful.
Story 3: Tenant Caught in the Middle of Financial Irregularities
A tenant at a Cyberjaya service apartment, who also wished to remain anonymous, shared their experience. In December 2022, they rented a unit and paid their rent and utility deposit through the owner’s appointed agent. However, in January 2024, the tenant received a shocking message from the owner claiming they hadn’t paid rent since December 2023.
The tenant provided evidence of their rental payments, including transfers. The owner reportedly never received these payments.
The tenant filed a police report to protect themselves and take further action with the authorities. This incident highlights the risk that tenants can face due to an unethical REN’s actions.
Beyond a Single Case: The Importance of Due Diligence
While specific details of the REN are not disclosed, these experiences highlight the importance of thorough research and clear communication when working with an REN offering rental administration services. This is crucial for both property owners and tenants.
Here’s how property owners and tenants can protect themselves:
- Property Owners:
- Verify Credentials: Check the REN’s license and look for any public complaints lodged against them (availability depends on location).
- Scrutinise Agreements: Formalize all agreements with a written contract outlining the REN’s responsibilities regarding tenant screening, rent collection, communication, maintenance coordination, and consequences for breaches.
- Open Communication: Discuss expectations upfront regarding communication style, fees, and the process for handling tenant issues and repairs.
- Regular Inspections: Schedule regular inspections of your property to ensure its condition and verify tenant occupancy.
- Trust Your Gut: If an REN or their rental administration practices raise red flags, walk away and seek a reputable and trustworthy professional.
- Tenants:
- Request Copies of Agreements: Ask for copies of any rental agreements you sign with the REN and ensure they are endorsed by the property owner.
By following these steps and staying informed, hopefully property owners and tenants can navigate the rental market with confidence and avoid the pitfalls of unethical rental management practices.
