03/07/2026
Recently, I had a client looking for an investment property.
They already owned a 4-bedroom condo and had reorganised the ownership structure of their existing property to facilitate their next purchase.
After viewing quite a few options, we found a unit that checked many boxes.
The rental yield was attractive.
The tenant profile was excellent.
And when we visited the unit, it was immediately obvious that the tenant took very good care of the home. Everything was neat, well-maintained, and in great condition.
At first glance, it almost felt like the perfect investment.
Good property.
Good tenant.
Good yield.
What more could you ask for?
But just before completion, something unexpected happened.
The tenant activated the diplomatic clause and terminated the lease early after being retrenched and having to return to her home country.
Suddenly, one of the key investment attributes of the property disappeared overnight.
And thatβs an important lesson for property investors.
A property should never be bought primarily because of a tenant.
Tenants come and go.
Rental rates go up and down.
Market conditions change.
These are temporary attributes.
The property itself must have strong fundamentals.
Safe entry price.
Strong exit strategy.
Sustainable tenant demand.
Future growth drivers.
In investing terms, the property must have a moat.
Because if an investment attribute can disappear tomorrow, it should never be the main reason for buying today.
Thankfully, the fundamentals of this property remained strong.
After the tenant left, we managed to secure a new tenant at an even higher rental rate.
Today is handover day.
And itβs a timely reminder that good tenants are a bonus.
Good fundamentals are the foundation.