You may have heard that renting out a condo is a good way to make money and kill two birds with one stone: your mortgage will be paid off, and you will have the opportunity to earn some additional cash. Although this definitely sounds like a very sweet offer to anyone, as with so many things in life, it’s not quite as simple as it may first seem.
It’s not as simple as taking some lovely pictures of the property and uploading them online for a first-time condo owner to find tenants. As a matter of fact, the monthly rent payment is just part of the job.
You’ll need to learn new things and discover hidden talents if you want to succeed as a landlord. Keep in mind that this isn’t a typical 9-to-5 profession since no one can predict when an emergency or the need for necessary repairs will arise.
We’ll do our best to help you navigate the Philippines’ complex condo rental market by laying out the basic tips to rent out your condo unit.
7 Tips to Rent Out Your Condo Unit
Condominiums may be a good investment, but getting into the rental market needs plenty of research, planning, and effort. Managing a rental property is a big job that requires you to pay attention to many details, including the law, taxes, and regular upkeep costs. Here are the tips that can help you to achieve that rental income as condo owners.
Tip #1. Identify your target market and seek them out.
Your condo’s rental market will appear quite different depending on whether you’re targeting short-term potential tenants like business travelers, students, and families or long-term tenants like recent graduates and young professionals. You should strive to determine your target market before making any decisions about rental price, fixtures, design, or promotion.
Where your condo is situated is also an important rent out your condo. Condominiums located in close proximity to educational institutions should concentrate their marketing efforts on faculty, teachers, and staff. Meanwhile, if your condo investment is located in a commercial area, your ideal prospective tenants will be local businesspeople or working professionals.
Tip #2. Keep the optimal condition of your condo unit.
Prior to advertising your condo flat for rent, it is crucial that you ensure it is in a habitable condition. Before allowing renters to move in, make sure there are no major issues like leaks, broken windows, or frayed cables. Getting a modern yet sustainable condo community like the one Asterra offers can also add some brownie points for your rental property.
To add to that, you need to make a decision on whether or not you’ll be renting out the house fully furnished. Depending on who you’re trying to attract, you may either rent out your apartment unfurnished or with all the essentials included.
Unfurnished condo units
Condos that are leased out unfurnished are more popular with renters and often get rented out quicker than their equipped counterparts. A modest family may choose to buy their own furniture and decorate the apartment on their own.
Furnished condominium units
Meanwhile, it is advisable to have furnished condominium units when your target market is professionals and students. Make your apartment a great area for them to live and study by including bunk beds, study tables, and plenty of built-in storage.
Tip #3. Have all the required paperwork ready.
Get your agreement in place. Payment terms, potential tenant’s responsibilities, landlord duties, and permit prior to your rental advertisment will all be spelled down in detail. In addition to the aforementioned documents, eviction and compliance with local building codes are other concerns that you must also consider. Make sure you communicate clearly with your renter to prevent any future confusion.
Pro tips to rent out your condo: Inquire with the building management about any necessary permits before advertising your property for rent. Also, make sure to process tax requirements beforehand.
Tip #4. Set a fair rental price.
When determining a reasonable rate for your rental properties, there are a variety of factors to consider.
Rental price is often set by the area’s desirability. Usually, the more prime the location is, the more premium the rental price is.
First, find out what other nearby residential units are renting for so you can set a fair price. It may be difficult to locate a renter if your rental rates are too high. A low valuation means that your investment may not provide the best possible return.
Repairs and furnishing costs
Don’t forget to include in rental price or security deposit the repairs and furnishing expenses that you had prior to making a rental agreement for a long-term lease.
Condo community amenities
The condo’s facilities are included in the monthly fee as well. Rooftop gardens, pools, fitness centers, children’s play areas, and other amenities vary widely amongst condo complexes. It’s also up to you to determine whether you want the rent to cover any of the homeowner’s association fees.
Tip #5. Assess your future tenants.
Since you’ll be accountable for your tenant’s actions, it’s crucial that you get to know his or her behavior on a personal level before renting to them.
To make sure your home is in safe hands and that your renter can afford to pay the rent on time, it’s important to run a credit report and rental history check.
Tip #6. Maintain a Healthy Tenant-Landlord Relationship
Building trust early on is vital since you are effectively admitting a stranger into your condo unit. Establishing positive, long-lasting landlord-tenant relationships requires your active participation with your renters. Try to work around each other’s schedules wherever possible and be flexible. Tenant relationships that go well need mutual regard and businesslike conduct on both sides.
Providing renters with assistance throughout the transition to a new apartment is one of the best tips to rent out your condo and can do a lot to build trust between a landlord and a renter.
Tip #7. Carefully manage your financial resources.
One of the important parts of a landlord’s responsibilities is to open a bank account and create a system for maintaining financial records. Be careful to keep tabs on and budget your cash flow. Leave a sum of money from each month’s rent in a separate account for repairs and other unexpected costs.
It might be difficult to make a sound investment in a condominium unit in the Philippines, particularly if this is your first such endeavor and you are not familiar with the rental agreement, which involves house rules.
Ease your burden by investing in a pre-selling condo like Asterra, and make the most of your capital by having lesser out-of-pocket expenses in a stylish condo unit that fits very well in every walk of life.