CASE STUDY: The Rental Market in Arcoris Mont Kiara Remains Competitive!
Hi everyone! Today we'll talk about Arcoris Mont’ Kiara at Kuala Lumpur. A magnificent development similar to established residences such as MK11 & MK28 (also by UEM Sunrise). With a vacant possession status, Arcoris is already welcoming occupants to fill up its unit types. It is well attached with numerous retail units such as host shops and restaurants combined with wonderfully designed courtyards.
Despite its perks, Arcoris continues to be a major struggle for rental seekers. Now, why is that?
1) The Challenges!
Here’s the deal. There are about 331 units for the taking here at Arcoris, based on the Serviced Residences Towers alone. What does this mean? Competition is at a high among owners seeking for potential tenants. Arcoris attracted a lot of investors, resulting in more competition as owners compete to rent out their units. To add more woes, facilities such as the pool, the retail shops and other common areas are not prepared to entertain the market. By summing up these undesirable conditions, one may get turned off by the lack of attractive factors suiting to their interests. Not to mention, there is also a big construction by YNH just a few steps away. Another turn-off.
2) The Truth!
Don’t get the wrong idea here, fellow tenant seekers! We think Arcoris is a great development. The location is right smack where all the action is and the compact sizes makes it a great entry-level lifestyle residence in a posh neighborhood.
To top it off, it's a gorgeous building and it's developed by one of the top ten developers in Malaysia.
The small sizes, unlike the many huge luxury units available in Mont Kiara, makes it a viable choice for many young expatriates and executives who wants to make a home out of this posh neighborhood.
3) So How Do I Attract These Tenants?
Always put yourselves in the shoes of these renters. People want to live in Mont Kiara not only because of practical reasons. Being part of a posh neighbor is one of the emotional reasons for wanting to live here (admit it you Mont Kiara-ians :P)
One way is to ride on this and give them more emotional reasons to choose YOUR unit instead of your competitors.
Fully furnish your unit. Your tenants are busy professionals. They value convenience and will search for furnished units.
Make sure your interiors look good. It has to fit someone who is looking for a cool, comfortable place in a posh neighborhood.
Of course, this doesn't mean you should go all out and splurge on heavy interiors (investments are supposed to make you money, not suck your money). Balance your budget accordingly by categorizing the furniture and appliances by must-haves, nice-to-haves, and luxury.
Must-haves are self explanatory. They are a must. Like, a bed. Duuuh 🤨
Nice-to-haves are things that add value, but are not essential. It wouldn't affect my overall decision much, but it gives me a push to make the decision.
Luxury are things that other owners will not even think of providing, like a 7.1 home theatre sound system or a playstation 4, or a free Birkin bag (Lol). These things make you go wild and make emotional purchases on the spot.
So, for properties in a posh neighborhood like Arcoris, make sure you provide all the must-haves and throw in a couple of nice-to-haves. If you still want to bring it up a notch, throw in luxuries! Your tenants are busy professionals who value time, so make it as equipped and as convenient as you can.
Do this, and you will reduce the move-in cost for your tenants, giving them one more reason to choose you.
Here are some pictures of how we came up with a cost effective way to achieve the above, and to safeguard your interests as a property investor.
4) The Result?
This unit was rented out within 2 week at RM5,000 per month to a Japanese expatriate.
Think we could save you the hassle of furnishing your property for rent? Drop us a message!
We're here to help, in KL and JB.