Reason Behind The Policy Decision Of 6 Months Advance Rental Payment

Teck Long Kuala Lumpur (formerly known as "TLKL")

The policy decision of 6 months advance rental payment which has been implemented on 1.1.2010 on bukit jalil area vista komanwel B has stirred some misunderstanding among new tenants. Before i list down the policy decision, it is interesting to note such a policy is very much welcomed by existing tenants. The owner of the apartment as well indirectly benefited from this policy decision.

Policy decision, as follows:

1. The International Medical University (IMU) Students are all studying professional course. i.e. medicine, dentistry, pharmacy, etc. The students here are busy generally to attend school and write up their bundle PBL assignments. It is therefore wise to collect advance so then the students do not need to meet up monthly to pay the rent.

2. The vista komanwel area do not have walking distance commercial hub, there is no bank around this area. The only one bank ATM is in IMU main entrance, most of the time, this machine running out of cash! So, while paying up advance, students are free from monthly banking needs.

3. The IMU "hostel", which is non existent but similarly like we are doing, renting from the apartment owner, and then sub-letting to their students as hostel. (www.imu.com.my). The IMU also collecting 6 months advance rental. Of course they coinned it in different term, instead of like us so transparent, they called it as "semester payment". To avoid disparity on the market here, i decided to collect advance like IMU hostel.

4. This is a place which highly populated by students. Almost 400 out of 523 units at vista komanwel b are occupied by students. The uncounted figure left to family home and other group catogories. It is therefore dangerous to carry out monthly rental as compared to 6 months rental. Almost all paying by cheques after the policy instead of cash on monthly basis.

5. The advance collection also favour us very much as to help us fight to reduce paper usage, like issuing monthly receipt and recording in accounting statement. Also, we dont need to send reminder by sms thereby cutting our operating costs. The savings goes towards picking up essential items for common area like light bulb and etc that count!

6. For advance payment, we collect only 1 month deposit as compared to the market here which usually collect 2.5 months deposits. This means 6 months advance payment actually is only 4.5 months advance.

7. For students who are unable to pay 6 months, we will help to look out other advertisement for room to let at clubhouse notice board and pass them the contact number accordingly. We believe in long term relationship.

8. For existing students who upon 1 month notice, is required to pay 6 months advance, we offered them 10% rental rebate. This figure is more than the interest one parked in fixed deposit return which at the time of writing, 6 months is 2.5% per annum.

I personally thank you for participation in this policy by cooperation to pay up advance like IMU hostel doing all the time.