What I Have Learned from Renting Out Rooms

A friend and I rented an entire home in Malaysia with three bedrooms, two bathrooms, and a living room, directly from the landlord, on a one-year lease for 3,100 ringgit a month. He is sometimes outside Malaysia, so we often have vacant rooms. I handle renting them out and have gradually picked up some experience. Here are my observations, for your consideration and criticism:

1 First, set your goals. Different goals call for different strategies. My goals, for example, are to reduce the burden of rent and make friends, so I pay more attention to prospective housemates' backgrounds, while the price is negotiable. Renting out the large and medium rooms leaves me paying only 300–800 ringgit a month for housing, an outcome I am already very happy with financially. Sublandlords and agents aim to profit from the difference, so they place greater emphasis on marketing and psychology, trying to negotiate landlords down and charge tenants more. Property owners themselves care more about stability: rent need not be particularly high, but they want tenants who can keep paying and will avoid damaging the home.

2 Next, research market rents in the residential complex. In ours, for example, a short-term rental of an entire home costs 3,600–4,100 ringgit. Large rooms go for 1,500–1,800, medium rooms for 1,200–1,400, and small rooms for 900–1,100. Prices are a little higher during the summer holidays and lower at other times. Once you understand the market, assess your own home in light of its condition. Charge neither too much nor too little: a fair, reasonable price benefits both sides. After researching the market, I drew up this preliminary table of prices I had in mind:

3 Then post the information. Write a listing describing the room's price, location, furniture, nearby amenities, advantages, and requirements for tenants. Post it in local WeChat groups and on Xiaohongshu, together with photographs and videos. It is best to have AI polish the wording, since Xiaohongshu's writing style is so effusive and emotional. After posting, do not just wait for people to appear. Watch for accommodation requests on the platforms, message those people directly, and invite them to look at your listing.

4 Agents generally charge a commission of around 10% of the rent. The less transparent the information, the higher the commission. The first time I rented out the large room, the rent was 1,800 and I paid the agent 300, which was above the market rate as a proportion. Without an agent, our price should certainly have an advantage, so be confident in quoting it. For example, if I want 1,500 for the large room, I quote 1,600; if I want 1,300 for the medium room, I quote 1,400. That leaves the other person some room to bargain.

5 Beyond rent itself, the deposit, payment method, utilities, internet charges, and other terms are all negotiable. Plan your approach to these in advance too. Our monthly internet bill is 150, or 50 per room. Sometimes, if we negotiate a lower rent, I charge separately for internet; with a higher rent, I include it. It is effectively a variable for adjusting the deal. Utilities are similar: if someone finds separate bills troublesome, you can add 50–100 and include everything.

6 Be sure to check the tenant's background. Abroad, look at their passport photograph, find out their occupation or school, and observe their personality. If someone seems clearly difficult to get along with, you can find a reason to decline, avoiding greater trouble later. Where possible, draw up a written agreement setting out the points that need attention.