The shabu lab story from last week is still unfolding. Here are some of the problems stakeholders are facing:
Lessor
1. The police will tag the owner as a suspect.
2. The property will remain untenanted for a few months as the police investigate.
3. We could expect damages/irregular wear to the property as multiple personnel go in and out of the property during the investigation.
4. Since the address of the property was published, it
will be tagged as an ordinary asset.
Village Admin
1. Residents will complain about why the admin couldn't flag the unscrupulous activities.
2. The village admin must set even stricter hurdles for rentals, and owners/brokers must comply.
Broker
1. The police will call upon the broker.
2. The owner and the village admin will question the broker's reputation.
As a broker who has been doing this for some years, doing a background check on the tenant is difficult since there's no readily available data except for what's available on Google. But here are three tips to avoid this situation:
1. Make it difficult for the client:
- Ask them to complete a questionnaire. Based on experience, sketchy individuals refuse to divulge information.
- Ask for a certificate of employment or corporate documents (if in business).
2. Prefer tenants who:
- Locals who have families (and kids studying in reputable schools).
- Are employed by a local firm. Make sure to ask how long they have been with the company.
- Have a checking account. Local banks see foreigners as a flight risk and therefore have set numerous hurdles (e.g., PH tenure of at least 6 mos.) for opening a checking account.
- Post-paid mobile account. Like banks, telecom companies require various documents before providing a post-paid line.
3. When in doubt, have someone work on the property monthly. Disguise it as a free service that would benefit the tenant (e.g., a gardener, a pool cleaner, or a repairman doing preventive maintenance).
Have you come across any other tips to avoid this situation?
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