The average gross rental yield of Philippine real estate is among the highest in the Asian region. Many people also look into the prospect of buying a property because of the benefits that come with it. One of the most popular investment options is condominiums. For one, they come with amenities that contribute to a comfortable lifestyle. Most real estate developers in the Philippines also have the best locations for their condo projects which makes them the viable choice for professionals and young adults. Another important benefit that should not be missed is the steady income opportunity that condo rentals can provide.
The condominium unit that you’ll invest in today can be turned into a condo rental business which may also be a steady source of passive income in the years to come. For this earning opportunity to materialize, you have to know the steps that will help you succeed in this real estate venture.
5 Tips to Start a Condo Rental Business in the Philippines
1. Find an Ideal Location
When it comes to real estate, location remains a crucial factor. This is especially true if you are eyeing a rental property. You can already find a lot of property owners who ventured into the rental industry. If you want to get your condo rental business to flourish, you have to choose a condo in a good location.
CitiGlobal, a trusted real estate developer in the Philippines, has developments in key locations in the country. You can check out the Tagaytay Clifton Resort Suites and Tagaytay Fontaine Villas for rental properties near the metro. The company also has beachfront properties in Palawan through Diamond Beach Residences. Soon to rise are other condominiums in some of the best spots in Palawan.
You can check out where our future real estate developments will be located through this video.
2. Make Your Condo Unit Visually Appealing
Spruce up your condo. First impressions are lasting so you have to give your best foot forward when it comes to turning your unit into a visually appealing sight.
Usually, it takes interior design basics to spruce up your space. Choose the right interior colors and arrange furniture to make your condo look inviting. For condo units with limited spaces, choose space-saving furniture to avoid a cluttered look.
It is also important to ensure that defects like leaky pipes, broken fixtures, and clogged drains are fixed before showing your unit to a potential tenant.
3. Know Your Condo’s Market Value
You have to know how much your condo unit’s market value is. Compare based on the value of similar units around the area. This will give you a rough estimate of how much you can potentially earn from a condo rental business. It will also help you get an overview of the income that you may generate from your property. Most importantly, it will help you set a price point that is justifiable for you and your future tenant.
Talk with a CitiGlobal representative today to know the best real estate development options.
4. Prepare the Documents
When venturing into a condo rental business in the Philippines, there are documents that you need to prepare. There will also be a rental income tax that you have to pay to the Bureau of Internal Revenue (BIR). Prior to having your condo leased, make sure that all required paperwork will be completed to avoid problems in the long run.
Additionally, a contract should be created between you and your tenants. It should include terms and conditions, including the rental fee and other obligations that they need to comply with while they are renting your condo unit. A comprehensive contract would be ideal as this will prevent lapses and protect both parties from future problems.
5. Spread the Word
You need to inform your connections about the condo rental business that you are starting. Your network will be useful in reaching out to potential tenants. Referrals are also often preferred as most property owners look at them as an effective way to separate good and bad tenants. However, you still have to do your part in doing background checks or assessing the interested tenant to avoid dealing with the wrong people.
Another option is to advertise. You can use your social media channels to promote your condo unit. This will provide added exposure for your property and help expand your reach so you may find a tenant in no time.
Why Invest in a Condominium
- Experience independent living
- Live in strategic locations
- Get maintenance support as needed
- Avail luxurious amenities without leaving your “home”
- Find a steady source of passive income
- Protect the value of your investment
- Take advantage of flexible payment schemes
ALSO READ: The Ultimate List of the Most Promising Industries to Invest in the Philippines this 2021
Having a condo rental business in the Philippines can easily provide you with passive income that you can enjoy for a long time. There are a few steps that you need to take to ensure that your venture will be swift and you will be able to find the right tenant in no time.
Looking into the prospect of investing in a condo rental business in the Philippines? Find a trusted real estate developer that can offer the best locations to start your business. CitiGlobal’s portfolio presents the best options on master planned communities and leisure properties that make great investments. Talk to one of our representatives today!