By now, you may have read countless articles or blogs on how residential properties such as condos generate passive income. Yes, condos can be a wise investment, but it also requires knowledge, skill, and hard work when getting into the rental business. As a landlord, you have a lot of responsibilities since it involves legalities, taxes, and operational maintenance expenses.
Let me give you some tips on how to get started on renting your condo unit.
1. Know Your Target Market And Reach Out To Them
Identify which group of customers you are directing your marketing efforts before you decide on the price, furnishings, design, and marketing strategy.
Will you rent your condo to working professionals or students? Will it be set up for families, couples, singles or a group of friends? Are you aiming for business travelers who will be staying for a short period or young professionals looking for a long-term lease?
The location of your condo will also be a major factor. If your condo is situated near schools and universities, you must aim to target students and teachers. If it is within business districts, working professionals will be your target customers.
2. Examine Your Tenants
It is very important that you get to personally meet your tenants to know them better because you will be held responsible for his or her behavior. A background check is needed to ensure that your property will be in good hands and to see if your tenant has the financial capacity to pay the rent on time.
3. Prepare Your Unit
After identifying your target market, you must do the necessary repairs to make it presentable before taking photos and videos, and deciding on its rental price. Check the condition of the electrical system, plumbing, interiors, etc. You must also decide whether you want to furnish it or offer it bare depending on your target market. For example, if you want to accommodate students, then you can put bunk beds, study tables, and built-in closets. Preparing your unit ensures that you get the most out of your property. You can demand a much higher price for a well-maintained unit.
4. Give The Right Price
In order to get the right price for your condo unit, you have to consider several factors. Location often dictates the amount of your rent. The more prime the location, the higher the rent.
Do some inquiries first about the current rental amount of other residential properties in your neighborhood to stay competitive with your competitors. If you charge too high, you might be unable to find a tenant. If it’s too low, you risk not getting the most out of your investment.
You must also consider the cost of repairs and furnishings that you have incurred. The amenities provided by your condo will also contribute to the rent. Some condos have pools, gym, playground, jogging paths, and landscaped rooftops while some do not. You can also decide if you want to include homeowner’s dues in the rent.
5. Prepare All The Necessary Documents
Prepare your contract which includes the terms of payment, tenant’s responsibilities, and landlord’s responsibilities. This also involves house rules and eviction. Make sure that you discuss all items with your tenant to avoid confusion in the future. Depending on the building administrators, you might need securing a permit prior to renting out your condo. You also need to process tax requirements.
6. Be Ready To Do Multiple Roles
As a first-time landlord, collecting rent is not the only thing that you are going to do. You have to be a salesperson, a repairman, a negotiator, and a security guard. Occasionally, you have to get help from the professionals such as an electrician or a plumber. You can also enlist building administrators for assistance.
7. Manage Your Finances Very Well
Open a business bank account and put together a bookkeeping and record-keeping system. Make sure you track and manage your income and expenses. Set aside a portion of the rent for maintenance and other emergencies.
8. Nurture Tenant-Landlord Relationship
Establishing a good tenant-landlord relationship is very important. Trust is essential as the landlord. Bargaining with your tenant should be done in a friendly manner.
These are just some tips on how to rent out your condo unit. Learning about this business is not easy and requires commitment if you want to become a landlord.
If you are looking for a functional and comfortable condo which you can invest and lease, consider Alpina Heights. Situated in Parañaque City, it is a short drive away from the Makati central business district, Bonifacio Global City, and Filinvest Alabang.
For more information about Alpina Heights, visit their website at www.alpinaheights.com/.
Check out their social media accounts – www.facebook.com/AlpinaHeights/, www.facebook.com/OfficialAHPC/, and www.instagram.com/officialahpc/.
