For many business-minded Filipinos, this presented a great opportunity to gain a steady stream of income by running a condo rental business. According to Colliers, demand for condominiums in Metro Manila will continue to be strong due to rental yields, which stands at an average of 5.1 percent.
While it is a lucrative income-generating prospect, a lot goes into this business. This is why it’s important to educate yourself on how to run a condo rental business in the Philippines before buying a condo property and having it rented out. Here are a few tips:
1. Choose an ideal location.
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, you want your property to be in an area where people would actually want to live. It should provide good transportation options, has stable infrastructure, surrounded by commercial areas and conveniences, and close to or even in a business district to cut down the travel time to work or to leisure areas.
2. Prep your condo.
After you’ve chosen a great property situated within a good location, make sure to check the unit you’re eyeing on for any damages, such as broken faucets, leaky pipes, burnt-out light bulbs, and squeaky floorboards. You should make sure that the property you’re buying should exceed your expectations as you are planning to make a profit out of it. It just makes sense to have everything polished and fixed so as not to give your tenant any problems.
Adding space-saving furniture can make your condo stand out in the market. Your future tenant will also appreciate smart storage spaces.
3. Find Out the Market Value.
After ensuring that everything is in tip-top shape, the next step is to know how much you can earn from your property by comparing it to other rental units around the area. The price range for rent is between 470 and 920 pesos per square meter for condo units in the prime cities of Metro Manila, according to researchers at Lamudi. This can be a safe estimate of 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.
This is also where having a high quality of property will come into play as it will give you the liberty and justification to charge handsomely.
4. Manage with relevant information.
Since it’s your property, you have the right to impose rules and set boundaries. However, you must first be aware of the legalities of renting out a property, as well as tenant rights, so no issues will arise even before you start doing business with a prospective tenant. It will also protect you as an owner. Afterward, it’s time to decide on how you want to manage the rental.
Managing your own business is best if you have the time and 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 to further clarify any ambiguities during your negotiations, and so that your tenant can have a clearer understanding of your terms.
5. Advertise your property.
Once your condo unit is ready to be rented out, take the best photographs of your property. Know the best angles of your property, highlight its best features, then write a good and thorough description to capture and engage your potential tenants. Check for credible sites like Lamudi to post your ad because it pays to put your ads in the right place to attract likewise credible customers.
6. Consider Empire East Highland
Empire East on its 25th year in the industry is developing 37 residential towers within a sprawling 24-hectare township named Empire East Highland City, along Felix Avenue in the convergence of Pasig City and Cainta, Rizal, one of the fastest-growing areas in the country. It will be highly accessible due to its proximity to two major thoroughfares—Marcos Highway and Ortigas Avenue Extension—providing easy access to Metro Manila’s central business districts like BGC, Ortigas, and Makati.
Future Empire East Highland City dwellers and renters also need not worry about commuting as the Emerald Avenue Station of the LRT Line 2 East Extension, which is near the intersection of Felix Avenue and Marcos Highway, is already scheduled to operate in the last quarter of this year. There are also transport terminals that residents can use to and from the property with great ease.
Price of condominium units developed by Empire East starts at Php 2.8 million. The Empire East Highland City will have a 38-tower condominium community called the Highland Residences. It will come with high-end condo features and amenities to ensure that residents will enjoy their condo lifestyle fully. On top of that, Empire East Highland City will be integrated with its own luxurious mall. Here, your future tenants will appreciate the massive selection of retail and leisure offerings that are readily available to them. The Chartered Club, an exclusive and world-class sports facility within the township development, will also let residents sweat it out and socialize with their neighbors.
On top of all of these, another great aspect of Empire East Highland City that will surely entice future renters is its breathtaking views of Metro Manila’s skyline, and the hills of Antipolo and Sierra Madre.
research the market, and start with a great property investment like Empire East Highland City.
This article originally appeared on Lamudi.com