Condos are an ideal investment. It can primarily be your home if you want to experience independent living or you can rent it to others who want to live in the location of your condo and be closer to their workplace or other essential establishments. With the latter, you can earn a steady passive income from your property aside from starting other quarantine business ideas.
If condo rentals are in demand in a specific location and you have the money to purchase more than one unit, you can try out a condo rental business in the Philippines. That way, you can provide the accommodation needs of people who prefer modern living in a condo where lifestyle amenities and urban conveniences are found within the complex.
People who often turn to condo rentals are individuals who want to live in the strategic part of the city or families who are still saving up to purchase a condo unit or other residential real estate property of their own.
Similar to other businesses, venturing into the rental business scene takes time and effort to understand and grow. After all, real estate is a tough business, and not paying attention to little details can have a significant effect on your returns.
If you own a DMCI Homes condo unit, putting up a “For Rent” sign outside your unit is not enough. You have to make sure that you, as a first-time or beginner landlord, your unit is ready to enter the world of the condo rental business. To help you with this undertaking, here’s a step-by-step guide on how you can start:
- Step 1: Choose an ideal location.
- Step 2: Enroll your condo unit in the DMCI Homes Leasing Services (DHLS).
- Step 3: Spruce up your condo rental property.
- Step 4: Determine the right rental price for your rental condo investment.
- Step 5: Spread the word.
- Step 6: Get to know your potential renter and discuss house rules.
- Step 7: Prepare the necessary paperwork.
Read on to determine what each step entails. Don’t forget to take notes!
Step 1: Choose an ideal location
Location is important, especially in the rental property business. The good news is that if you invest in a DMCI Homes condo, you won’t have to worry about finding properties in good real estate locations. Condo complexes developed by DMCI Homes are located in strategic locations in and outside the metro such as Makati, Mandaluyong, Quezon City, Taguig, Pasig, Parañaque, Bacoor, and Baguio City. All you have to do is to choose a project that suits your taste or perhaps is located in a city close to your permanent residence or a city you also want to live in from time to time.
Step 2: Enroll your condo unit in the DMCI Homes Leasing Services (DHLS).
The DMCI Homes Leasing Services (DHLS) is a service specifically designed to provide knowledgeable insight and practice for unit owners and investors who want to rent out their units. This service aims to enhance the property values and marketability of the unit.
The leasing website of DMCI Homes is where unit owners can enroll and list their properties online to market their property. On this site, property seekers can find available condo rental units located in Metro Manila, Baguio City, and Davao City. Since the listing is updated regularly, it provides timely information on available units, their rental fees, and pertinent details. Clients can also directly inquire online.
When enrolling your unit in DHLS, all you need to do is:
- Fill out the electronic forms provided on the website such as Lessor Information Sheet and Authority to Lease.
- Wait for the confirmation email from DHLS and schedule for property assessment where the unit will be fully inspected, keys are handed over, and photos of your condo will be taken for review and inventory.
Step 3: Spruce up your condo rental property
When venturing into the condo rental business in the Philippines, the upkeep of your condo is essential as this will influence a property seeker to choose your unit over the other units available in the location.
When sprucing up your condo, there’s no need to always purchase high-end appliances, furniture, and fixtures. In reality, choosing the right interior colors and knowing how to pick and arrange the pieces of furniture are essential in maximizing the space of your condo and making it appealing to the eyes. Having space-saving furniture is a huge selling point for property seekers.
It is important to put yourself in the shoes of your potential renters. Think of what they will need to live comfortably in your unit. Make sure that while your unit is aesthetically pleasing, it doesn’t have any damages such as leaky pipes, burnt-out light fixtures, broken faucets, and clogged drains.
Step 4: Determine the right rental price for your rental condo investment
Once you have ensured that your unit is in perfect condition, it is time to determine the rental fee you have to impose on your unit. It is best to check out the rental fees of nearby condo units to arrive at a safe estimate of how much you should charge for monthly rent in your condo. You also have to take into account the furnishings you included in your condo.
You can also consult with professional real estate brokers from DMCI Homes Leasing Services to help you assess the full potential of your unit accurately so you can impose an ideal price.
Step 5: Spread the word
Get the information out that you have condo rental properties for rent. You can get referrals from your family and friends or run social media ads to extend the reach of your condo rental business in the Philippines. If you enroll your unit in DHLS, you can be sure that they will be found by property seekers looking for DMCI condo rentals online.
Step 6: Get to know your potential renter and discuss house rules
As a landlord of a rental business, you have to make sure that you put your property in the hands of responsible renters. At the same time, you have to ensure that your renters feel comfortable and at home in your unit.
To achieve this, get to know your renter. Sit down with them and discuss the house rules you want them to follow when living in your unit. Reasonableness is important when setting rules. You can opt to yield to the requests of your renters with regards to house rules if they seem like they have good judgment. That way, both of you can meet halfway and they can enjoy living in your unit without you sacrificing the overall condition of your rental property.
Remember that tenants are more likely to meet their obligations if they see that you fulfill your role as a landlord effectively. Be responsible for the overall condition of the unit and make sure that it is in tip-top shape to ensure the safety and comfort of your renters. If you have limited knowledge and practice of fixing things inside the house, you can enlist the services of an expert to save time and money on repairs.
Step 7: Prepare the necessary paperwork.
Venturing into a condo rental business in the Philippines means paying for rental income tax to the Bureau of Internal Revenue (BIR). This is charged in place of sales tax since no purchase has been made but rental services are rendered and earned from. So make sure that you accomplish the necessary paperwork when entering a rental business.
You should also put everything into writing when making a contract with your tenants. State the terms and conditions that apply, and the monthly rental fee and other financial obligations they have to fulfill during their stay. It might be a lot of work at first, but having a complete contract will save you from any potential long-term problems (even lawsuits) in the future.
Condo rental business and property management is serious business. You need to take time to prepare before starting. With the help of this guide, we hope that you don’t forget to enjoy the process of entering into real estate business. Just follow these tips and you’re all set to begin your journey as a responsible and reasonable landlord.