People are now more educated with regards to creating multiple streams of income. One on the list includes renting out properties to get help paying the mortgage, association fees, and other living expenses. They can either opt to rent their property for a short time or owners can post their condo home on Airbnb. If the venture gets bigger, it could pay for everything a person needs and wants—yes, it includes building wealth for the next generations. All this sounds promising and exciting, but of course, there’s work to do.
Well, everybody knows how tough the backend could be. Renting out any property is more than just taking great pictures, posting on social media, boosting ads, and answering queries of potential customers. From the final decision of buying the property to finalizing the design and maximizing the use of space is all about strategy.
Know the Target Market
The decision to purchase any property must include whether it will be rented out at some point.
This part is tied to the strategic choice of location. A condo building near the university belt would target students, while properties located near business hubs attract working professionals or business travelers.
When one already knows the target market, reasonable pricing follows. The basic rule is to be up-to-date with the market price and to make sure not to fall below and not too high. Business is about making money at a reasonable cost and with a good amount of profit—people know rip-off prices and it’s not a sustainable price as it drives people away.
Choosing the target renters will also determine how the space should be designed.
Design and Function
The purchases unit will not have it all as most deals will be unfurnished, condo design must be tailored to the renters’ needs. Students renting in groups will need bunk beds, study spaces, or any furnishings that will be essential for the convenience of the possible person who will rent the unit. Travelers who only need a place to stay for days prefer the “instagrammable” views and hotel-like experiences for their comfort. The unique selling point of a condo is the kitchen. It is less costly to cook instead of ordering food just like in the hotel.
People who are likely to stay for the long term just like starting families need good storage spaces and top-quality appliances to prevent quick depreciation.
Some features to add will be:
- Kitchen cabinets
- Sofa beds for multifunctional living room
- Collapsible kitchen tables
- Mirrors to make the space look even wider
In doing a venture, it’s highly important to factor in the costs. In this case, managing condo rental includes marketing, effort, time, and money. Upkeep, furnishings, and employing people to take care of cleanliness should be kept in mind, otherwise, the landlord might not notice the losses.
You read it right! As challenging as it may be for someone to fine interested tenants, vigilance is still needed. This is not to the extent of hiring a private investigator, but a background check for due diligence will never hurt. When establishing rapport with potential renters, the best foot is always forward so the only reference would be by thorough identity verification. The purchasing power of Filipinos is better, and Vista Residences Inc.’s condominium buildings will never be at the bottom of the list when it comes to featured amenities and affordable prices so screening will do you better than good.
Because condo living is not so cheap, one good way to eliminate tenants who might not regularly pay the monthly dues on time is by requiring a few months of advanced payments and security deposit to cushion unforeseen expenses after the contract ends. Just to be on the safe side, requiring police clearances helps eliminate the likelihood of housing people with high-profile criminal records.
Prepare the paperwork
Just like any other deal, especially for long-term rentals, there is a place for the tedious task of arranging the paperwork. This includes the specifics of the tenant’s and the landlord’s responsibilities, agreement towards rules, payment terms, and any non-negotiables just like terms of eviction. Depending on the building admin, tenants may be required to sign another set of agreements towards building rules and regulations, while landlords might be asked to secure permits before renting out the property.
Nurturing tenant-landlord relationships to encourage long-term rental or to have regular clients will be of primary importance. At some point, compromises might be needed, the contract might need revision, and constant respectful communication will be part of the process. Apparently, it’s initially a risky relationship because one would let a stranger live in his or her home so it will be good if there are regular or long-term renters who are at least almost as concerned about the property’s upkeep as the owner.
One simple gesture to create a cozy place that shows the renters are taken care of is an inventory of house rules and reminders, a list of restaurants in the area, a short guide to give tips about commute around the city like which shopping apps and travel apps to download; leisure, and relaxing experiences they might enjoy just like going to the nearest museums, bowling alleys, cinema, public libraries —all of these in one copy.
This list will make the rental property home with special features. It’s not just about its appearance and upkeep. It’s also about customer service, open communication, and relationship management. It’s not a one-time deal that only aims at receiving money from a big investment just like real estate. This business, like any other, is about taking care of people—giving them enough freedom to move around the property, allowing them space for comfort, and providing them a connection that’s reachable in times of need.
The job will not always be glamorous, but it pays well to take care of people even in simple ways of answering the phone when they need someone to take care of the plumbing. Vista Residences also has a dedicated team to take care of worry-free leasing. Upon purchasing the property team this part of the company will take the burden of directly leasing the property for profit.
If you are thinking of moving in to a new condominium, check out Vista Residences!
Vista Residences is the condominium arm of the country’s largest homebuilder, Vista Land & Lifescapes, Inc. that offers ready for occupancy and pre-selling condominium projects in Manila, Makati, Mandaluyong, Quezon City, Ortigas, Baguio, Cebu, and CDO that are strategically located within major cities, in close proximity to premium universities, transit oriented locations and developed business districts.
At Vista Residences, unit owners can take advantage of the property’s centrality. The properties of Vista Residences are strategically located near the country’s premium universities and CBDs, making them an attractive investment for both local and foreign investors.
Living in Vista Residences enables you to enjoy convenience, where everything is pretty much within walking distance or a few minutes away from the property; comfort because the project features and amenities are designed to deliver comfort at all times, which makes condo living a worthy investment; security that is 24/7 and CCTV monitoring, which makes the residents safe and secure within the property.
In line with Vista Residences’ thrust to offer convenience among its residents, it also features an AllDay Convenience Store and Coffee Project in all its projects.
For more information on Vista Residences, email [email protected], follow @VistaResidencesOfficial on Facebook, Twitter, Instagram, and YouTube, or call the Marketing Office at 0999 886 4262 / 0917 582 5167.