The great thing about investing in real estate is that you can live in it, or you can make money from it. Join the condo rental business and earn from your investment through rental income.
Filipinos are beginning to appreciate the convenience and the unique lifestyle that condo living can give. This is evident in the continuous increase of Filipino condo renters in Metro Manila. In addition, cities such as Makati, Taguig, and Pasig are also popular locations for expatriate employees, which make rental condos in these areas viable investment options. Although it is a lucrative business to be in, educating yourself on how to run a condo rental business in the Philippines before you go out and snap a unit is important. Here are some tips to get you started.
Five Tips on How to Start Earning Rental Income
- Choose your location well.
- Prep your condo.
- Find out the market value of your condo.
- Determine how you want to manage your rental business.
Choose Your Location Well
People who want to live in a condominium consider many factors before they decide to rent one, but the most important factor is location. As an investor, pick a highly sought-after area where people are likely to live. Your chosen location should be served by good transportation links and infrastructure, surrounded by commercial areas (such as supermarkets, shopping malls, etc.), and close to or even in a business district to cut down the travel time to work or to leisure areas.
Prep Your Condo
Before you rent out your condo, Inspect the unit for any damages, such as broken faucets, leaky pipes, burnt-out light bulbs, squeaky floorboards, etc. Repairs will ideally not cost you much, since most units do not take up much space. Compared to houses, you also will not have to worry about gutters, roofs, and downpipes. However, it makes sense to have everything polished and fixed so as not to give your tenant any problems. Cleaning can also do wonders to entice prospective renters – a fresh coat of paint and space-saving furniture can make your condo stand out in the market. Your future tenant will also appreciate smart storage spaces.
Find Out the Market Value of Your Condo
Your condo unit is ready to be rented. The next step is to know how much you can earn from your property by comparing it to other rental units in your building or around the area. This can be a safe estimate on how much rental income you can generate from your condo. Professional advice may be necessary as real estate brokers who specialize in condominiums know how to properly price these properties.
Determine How You Want to Manage Your Rental Business
Managing your own business is best if you have the time and the energy to do so, since you can secure the profit all for yourself. If you decide on this, carefully draft a lease agreement, which must be signed by your tenant sign to further clarify any ambiguities during your negotiations, and so that your tenant can have a clearer understanding of your terms.
However, you may also opt to hire a professional property manager who will do all these (and more) on your behalf. Property developers such as Avida Land have a Leasing Services Arm (LSA) that takes care of leasing out your unit to make searching for tenants and maintaining your property hassle-free.
Once your condo unit is ready to be rented out, take pictures. Know the best angles of your property, highlight its best features, then write a good and thorough description to capture and engage your potential tenant. Check for credible sites likes Lamudi to post your ad because it pays to put your ads in the right place to attract likewise credible customers.
This article was sponsored by Avida Land Corp.
Avida Land Corp. is a mid-market subsidiary of Ayala Land, Inc., one of the Philippines’ largest real estate developers. Avida goes beyond any homeowners’ expectations by offering unique features and amenities (plus a stress-free buying process).
Main photo via IngImage