Opportunities of tenancy management services by FM Organisation in Johor Bahru

Abstract

Property investment has always been one of the best investment vehicles to build a steady stream of passive rental income that can be extremely rewarding if managed correctly. When comes to the management of rental property, there is no doubt that rental is always the main issue. There are of course other issues which give problems to the landlords for example tenant disappearing act, causing damage to the property and using the rental property to carry out illegal activities. The same goes to the tenants whereby they may encounter landlords, who on purpose delay the refund of security deposits, produce unjustified claims, fail to carry out repair and maintenance of the rental property and fail to provide quiet possession of the rental property. These are the common examples of problems faced by the landlords and tenants when the tenancy is managed without using the tenancy management service provider. There are two objectives for this study. The first objective of this study is to identify the reasons why both the landlord and tenant decline to use tenancy management service providers that are available in the market. The second objective is to identify the list of problems faced by both landlord and tenant in the residential sectors, namely the apartment complex. The data for this study are collected from three different groups concerned, namely the parcel owners of the apartment, tenants of the apartment and the Apartment Management Team. These data collected were then analysed using Frequency Distribution and Likert Scaling Analysis method. The findings of this study suggest that the business of tenancy management services would be a good business prospect and opportunity in Johor Bahru taking into the consideration of the availability and market of sideline investors, corporate or foreign tenants who favour the used of agency services and the nature of tenancy problems which could not be solved effectively by the landlords and tenants themselves. Finally, the results of the findings may also become useful information to the FM organisations who intend to venture into the business of tenancy management services in Johor Bahru