Renting business is one of the thriving businesses, especially in the metro. There is a growing demand for accommodations as more families, employees, and students go to the city to pursue careers and education. While not all can purchase a house and lot for sale for themselves, an apartment for rent is the next most suitable home for some.
For families living in the metro, and other parts of the Philippines where there is a demand for apartments for rent, a rental business is a good and stable income. However, like most businesses, it pays to have an idea of what factors to consider to get the best value for your capital and make sure that your rental businesses will thrive.
Have Enough Capital
Photo by Miguel Á. Padriñán on Pexels
Before starting your rental business, you should decide how much capital you will set aside. Building an apartment from scratch can be time-consuming and expensive, especially if you plan on putting up an apartment for sale in Manila and in prime locations. In addition, you might also have to shell out extra cash should you want to make your apartment more aesthetically pleasing and valuable to your potential tenants.
Have a Plan
Photo by Startup Stock Photos on Pexels
As an apartment rental business owner, you should plan what type of tenants are suitable for your units, how many they are, what house rules you will apply, and how much monthly rent you will impose. Having a solid plan in mind helps you keep your property in good shape while earning a steady income that will allow you to earn a high return on investment.
Register Your Business Properly
Photo by bitpics on Depositphotos
Once you have your apartment, you need to make sure to register your apartment rental business with the Department of Trade and Industry. You should declare what type of ownership your business is under during your application process and how much rent you impose on your units.
Select an Ideal Location
Photo by VitalikRadko on Depositphotos
If you want to start an apartment rental business, location is key. It will help if the apartment you own is near essential landmarks and establishments to be more attractive to potential tenants. It would also be best to choose an area safe from typhoons, earthquakes, and other calamities. To easily visit your apartment for random checks or other matters of concern, it is also ideal if you live near the apartment you rent out.
Put Yourself in the Shoes of Your Potential Tenants
Photo by monkeybusiness on Depositphotos
When it comes to deciding on your apartment, it will help to put yourself in the shoes of your potential tenant. That way, you can design your space in a way that will be functional and beneficial to them without going over budget. If you choose to rent out semi-furnished units, you can also plan with your future tenant should they decide to make small changes to the unit.
Make a Contract for Every Tenant
Photo by Andrea Piacquadio on Pexels
For your and your tenant’s protection, you should put into print all your agreements. Make sure to include all that you expect from your tenants and what they can expect from you in the contract. That way, both parties’ rules, regulations, and obligations are clear. From payment terms, changes to the apartment, and conditions should the unit be damaged, all should be included in the contract.
Choose Your Potential Tenants Wisely
Photo by Kindel Media on Pexels
Not choosing your tenants wisely can negatively affect your unit and your income. Some tenants can fail to pay their rent, while others may not be as caring for your unit as they should be. To avoid any problems in the future, screen your tenants before having them sign your rental contract. Make sure that they are responsible, and aside from being able to pay rent on time, they should also maintain peace and order in their unit.
Maintain Your Property
Photo by kzlobastov on Depositphotos
As a landlord, it is your responsibility to inspect your apartment to ensure that it is well-maintained regularly. If a tenant says that something needs to be repaired, it is best to fix these immediately to preserve your property and avoid more problems in the long run. Moreover, if you care for your property well, chances are, your tenants will stay in your unit for a long time, and you can attract more potential renters.
Starting an apartment rental entails a lot of planning and budgeting. With these tips, you can get a better overview of setting up and running your own apartment rental business.