Manila, Philippines – The country is witnessing a Boom of Condominium construction specifically in the Metro Manila and its outskirts over the past decade and recently within major cities like Cebu, Baguio and Davao to name a few. Why not? A roof over one’s head is one of the basic needs of every human being. And with the fast growing population and the influx of foreign investors and migrant workers, the demand for shelter is fast growing and the risk of over supply is still far from the horizon. Condo Towers are very practical in a high density area as its footprint covers only a small amount of space. If you are financially capable but haven’t grabbed the opportunity of condominium just yet, you should start considering now. You can find most developers who are offering a very affordable payment schemes. But if you already invested in a condo unit well, congratulations. I guess you were well informed of the benefits of owning a condo unit and one of the ways of reaping the benefit is to rent it out so that it will help you lessen the burden of paying high amortization (unless you were able to pay it cash).
So here are the 5 steps I would recommend to successfully achieve
your goal of monetizing from this choice of investment.
1.
IDENTIFY YOUR MARKET – Even before your receive
your unit, you need to familiarize yourself with the location of your property.
You must identify the establishments within the vicinity, if you are nearby
school campuses then most probably your soon to be tenants will be students, if
you are nearby the central business district then there is a chance that you
might get young single professionals or professionals with small families and
if you are nearby malls or industrial areas chances are you might get inquiries
from companies that will lease your unit for their staff accommodation.
2.
FURNISH YOUR APARTMENT – Once you identify your market
it will help you decide if there is a need to furnish your unit or just keep it
bare. If your target market are families for long term rental then it will be
beneficial to keep it bare as most families bring their own furniture and
appliances with them or it depends on the case. But if the target tenants are
single young professionals or students then there is a need to furnish your
apartment. It is important to prioritize the comfort of your tenant when
choosing the right furniture for your unit.
3.
ADVERTISE – In this step you have many options.
Once you completed the furniture, take some proper images of every corner of
your unit and prepare a brief description and the inclusions in the rental
property and post it to your social media account or third party property
finder websites. Providing photos of the amenities is an added advantage. You
can also create an account with Air BnB to advertise your unit. Make sure to
provide proper information as you will have a broader international market with
this option. Lastly if you don’t have the luxury of time to manage your
property, you can enroll your unit with the condominium leasing department, they
will find a tenant for you and provide a readily available tenancy agreement in
exchange for a commission.
4.
VIEWING OF YOUR UNIT - Prior to a scheduled
viewing, make sure that everything is properly organized and maintained. From
properly lined sheets, functional appliances, power sources. lighting fixtures and
shower heads. Also it is an advantage to provide an ablution hose or manual
bidet in beside every water closets. Most important of all is cleanliness, be
aware of the scent of your property, invest in trying to impress every viewers.
It is recommended also to refurbish the paint your unit every 5 years or when
the need arises. Comfort and convenience of every tenant is your personal
mission.
5.
MAKING THE FINE PRINT – Here you must understand
the required documentations to be considered in your rental business, first is
the tenancy agreement where the terms and conditions that will protect and
benefit both landlord and tenant should clearly defined. Also make a list of
what furniture are included before they move in. You must completely identify
and mutually agree the rental rates including the payment terms, advance and
security deposits, utility payment and late payment fees, parking fees and who
will shoulder the association dues, etc. It is also important to have the
contract to be notarized. Do your homework of making a research for the rental
rates of your property in the market. Normally the leasing department knows the
price range depending the size and age of your unit. You can have an edge to
negotiate above the current price range if your unit and furniture are
regularly maintained.
In addition, make sure to take care of your tenants once
they start occupying your condo, be in constant communication with them so that
you will know if they are enjoying their stay or they might need some support
or questions about your property. Your ultimate goal is for a longer terms of
agreement in order to have continuous income and avoid the hassle of finding a
new tenant and maintaining your units in between rental contracts.
There you have it, my complete straightforward steps on how
to rent out your condominium unit in order to help you pay your installment and
subsequently reap profits once you settled the amortization completely.
DISCLAIMER – I wrote the steps assuming that you have a
budget for the furniture in case you purchased a bare unit. It is appropriate
to invest on additional furniture and appliances to attract tenants faster.
Be blessed and a blessing to others.
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