JOB losses and financial difficulties caused by the Covid-19 pandemic are hurting the rental market, as tenants appeal for discounts or move to smaller and cheaper rooms. 

Property owners are finding tenants hard to come by, except in cheaper locations. 

“The tenancy market is not very strong during this pandemic. Concerns about job losses have prevented potential tenants from upgrading to better places,” said property owner Jega Ponnudurai, who has tenants along Jalan Klang Lama. 

“Existing tenants are willing to renew but have asked for a reduction in their rent.

“Getting a new tenant has not been easy and there is a possibility of defaulters, so I feel it is safer take reduced rent but from a tenant whom we know and feel we can trust,” he added.

Jega said he charged his tenant about RM1,000 per month and agreed when the tenant asked for a 50% discount.

Another property owner, Julian Ong said he lost two of his tenants who cited financial difficulties in paying the rent, and is now unsure whether he can fill his vacant property.

“A lot of people are trying to live on a budget. Two of my tenants just terminated their agreement and with the current spike in the number of Covid-19 cases, I am not sure when I will be able to get new tenants.”

In Ong’s case, his properties, located near universities, also face a scarcity of potential tenants as classes are conducted online, which means students are not required to live on or nearby campus.

“Students are taking their courses from home and do not need to rent a unit nearby.”

The Higher Education Ministry has announced that all teaching and learning programmes at public and private universities must be conducted online until December 31.

Only some flexibility is given to certain students where their physical presence is required at laboratories, workshops, studios or when the use of specialised equipment is involved in their training. 

Deferred rental

Jega said there are also more cases of tenants asking their landlords to allow a deferment on rental payments.

“We must show compassion to people and not force them out, however, for some landlords who depend on rental income for their livelihood, it can also be difficult,” he said.

Property agent Deric Lim said he observed that the rental market had become challenging, but most people would still rent if prices are affordable.

Rental rates have also dropped due to poor demand, with what used to be rented out for RM4,000 at only RM3,000 now, said Lim, who is an agent with Dutama Properties. 

The market has slowed in Kuala Lumpur, Selangor and Putrajaya, where the conditional movement-control order is currently in place, as these are high rental areas, he added.

Tenant Preshant Menon, who rents in Subang Jaya, said understanding landlords are hard to find, and is grateful for his who allowed him a deferment without any penalty.

“Staying with a friend is the cheapest option. Many places for rent are still demanding deposits,” he added.

Property owner Amelia Lim, who leases a property in Nilai for RM1,400, said she has given a RM200 discount to her tenant who lost her job recently.  

“My tenant was working in the airline industry and got laid off quite early on in the pandemic.

“I have been giving her a RM200 discount for the past four months and I will continue to do so until she gets a stable job,” Lim said. – November 8, 2020.