Renting out a condo is a feasible way of building your wealth. This is a source of passive income you can count on even during economic downturns. Regardless of economic conditions, people will need accommodation, similar with other basic necessities. Condo leasing is such an appealing income source that more people are investing in a condo space. There is a tight competition for tenants and you should be equipped to get ahead of the game. Prospective tenants are also more informed about their options, thanks to their access to information on the web. They can easily browse homes, compare rental rates, and make decisions even before they visit the leased property.
How can you win the right tenants for your DMCI condo space? Here's a condo landlord guide for you.
Set a competitive rent
Nothing can be more discouraging for a prospective tenant than an overpriced space. It's important that you're informed, and constantly updated, on rents within your area. Know the offered rates on various types of condo spaces. You can use information on the web or inquire with leasing companies. Take note that prospective tenants have the luxury of comparing rents in various condo communities using online info and leasing apps.
Tip: if your unit has been vacant for too long (“too long” is subjective), consider lowering your security deposit. You can also opt to lease your condo as a shared space. Shared homes are popular among college students and yuppies.
Make your unit worth every peso
Tenants will not really have any problem agreeing with your desired rent if they know they’ll get the value for their money. Whether you’re offering a bare studio unit or a furnished space, make sure that it’s equipped with functional fixtures. You can command a higher rate with a furnished condo unit, more so if you’ll have the space dressed up with an appealing interior design. Consider your condo management fees and add it all up—this can help you set a reasonable price for your rental.
Tip: consider renting out your condo to a number of tenants, shared space-style. Furnish the unit with bed bunks, storage spaces for each tenant, and a well-equipped kitchen. This will help ensure your unit is occupied at any given time.
Market in the right platforms
Your online advertisement may be reaching a lot of people, but are you attracting the right ones? Your ultimate goal is to have your unit leased by the right tenants. One of the ways to reach the right audience is to use the proper platform. If you're targeting OFW parents looking for accommodation for their college kids, you should have presence in online marketplaces popular among migrants. Facebook remains a top source for apartments/condos for rent. But consider paid ads which use analytics for targeted marketing. Make sure you post ads on reliable platforms online. Avoid those that have been involved in any form of scam or misinformation.
Notes: The web isn't just the platform. Believe it or not, print ads are still effective. Inquire about classified ads in newspapers or magazines. These ads will also likely attract the good paying tenants you're looking for.
Create appealing ads
Prospective tenants who browse for homes online will likely decide based on what they see in your ads. If they don't like what they see, you lose all opportunities of winning them over. The photos you post will make or break your marketing. Here are some tips when taking photos of your unit:
- Prep the unit before the photoshoot (furnish it if you must);
- Use a high-quality camera;
- Take photos of each room,
- Highlight any special feature such as a marble countertop or a balcony.
More tips: Before posting the photos, ask yourself this question: Will I rent this unit for the asking rent? Proofread your ads for grammar and syntax. The way you present your condo to the market is a way of establishing your credibility as a reliable landlord.
Consider renovating your unit
Are you having a hard time finding the right tenant? Your unit may be properly priced, but there may be something that turns off prospective tenants. This may be an undesirable feature such as bulky wall cabinet, a divider or a space-consuming kitchen island.
Consider renovating your unit to make it more marketable, considering your target tenants. If you're aspiring for a long-term lease, leave the unit unfurnished. Long-term tenants will likely bring in their own furniture. A short-term tenant may not mind the fixtures you've already installed, but it can still help to know any hesitations on your unit.
Be flexible with the provisions in your contract
The lease contract sets the law between the landlord and the tenant. It provides for the rental rate, the term of the lease, conditions on pre-termination, and the rules and regulations. If you're having trouble signing up a tenant, it can help to revisit the lease contract. You may need to adjust the term, lower the security deposit or be more flexible about pet ownership. Just make sure that the adjustments abide by the rules and regulations imposed in the condo community.
Seek the assistance of professionals
Being a good landlord requires work. This is more than keeping the leased premises in good shape; it also involves exercising sound judgment when dealing with prospective and existing tenants. The latter isn't something you can learn in school. It may require years of experience in the leasing business. Ask for assistance. Talk to mentors. It's okay to admit that you're still learning the ropes.
Tip: Seek assistance from professionals. DMCI Leasing offers one-stop shop leasing services. Its team of professionals will source qualified tenants, inspect and monitor your condo unit, administer the lease contract and, collect and forward rents to you. They will also negotiate renewals, extensions, and other provisions in the contract. The DMCI leasing online platform delivers all updates that landlords need. By dealing with a leasing company, you can save yourself from major landlord problems.
Condo leasing is a viable source of passive income. It can boost your wealth and help you attain financial freedom. But like any other venture, it's not always a walk in the park. Being a landlord requires real work. You will encounter mishaps in scouting for the right tenants and may need to make adjustments in the contract or the unit itself. Just keep in mind that you're not without options. Seek assistance. Ring the DMCI contact number at (02)403-7368 and let professionals lead you.