Real estate can be a lucrative investment that presents opportunities to gain a steady stream of income. According to Colliers, Metro Manila is one of the most attractive real estate hotspots in Southeast Asia due to the high rental yield and strong demand for condominiums for rent.

While it is an appealing business venture, renting a condo is more than just advertising a lease and collecting rent every month. To be a successful landlord, you need to constantly learn and adapt. For first-time landlords, here are a few tips to get you started.

Know the rules
The very first thing you should consider is how freely you can rent out your condo. Some condominium communities will have no qualms about a bed and breakfast rental in their midst, while some communities can vet the lessees. Aside from the boundaries, you should also know the rules and regulations of the Homeowners’ Association (HOA) so you can lay it out to your tenants.

Target the right market
Will you be leasing your condo to families with small children, or to young professionals starting their careers? Before you decide on the price and the furnishing of your rental condo, identify your market first.

The location of your condo can help you define your target market. If your condo is within the university belt, then students and university employees are practically a captive market. If your condo is in a business district, you can offer your rental condo to young professionals, business executives, or expats working nearby.


Ask the right price
Like in any business, pricing should be on point. Ask too low, you lose money. Ask too high, you lose potential tenants. You want a price that will attract tenants and ensure a good profit.

There are several considerations to make in pricing your rental condo. First, consider the prices of similar units in your area, so you know what you will be up against. Whether you can match their rate will be based on how much you furnish your unit, your repair fund, and the fees of a property manager if you choose to hire one.

Spruce up your unit
Before you advertise your condo unit for rent, make sure it is in tiptop shape and more than livable. Check if all windows open and close properly, faucets don’t leak, and electrical wirings are safe. Then decide if you want to furnish your rental unit or offer it bare. Generally, unfurnished units are more affordable and get leased out quicker compared to more expensive furnished units. So depending on your target market, you can keep your unit sparse or fully furnished. For instance, if you are renting out to a small family, they may prefer to furnish the condo themselves. If you are renting out to students, however, you can provide bunk beds, study tables, and built-in closets to make your condo conducive to living and studying.


Advertise online
An eye-catching listing will attract the right client and help you stand out from other rental properties online. Post photos that highlight the best features of your unit and the amenities. Write an informative description that includes the unit features, list of amenities, and the nearby establishments.

Screen tenants
As a landlord, you take the risk of a tenant messing up your unit, disregarding HOA rules, and missing monthly payments. To avoid stress, choose a tenant that is responsible and tidy. Create a checklist of all the qualities you want in a tenant and use it as a guide when meeting with potential renters.

Ideally, conduct a thorough background check on all potential tenants. Ask for IDs and call the previous landlord to probe how he/she is as a tenant.

Write the contract
Before you rent out your unit, you will need to prepare an official lease agreement. Your lease agreement should clearly define the duration of the lease, the terms of the monthly rent and initial deposit, and the responsibilities of both landlord and lessee. The contract should also plainly state all your house rules and reasons for eviction or pre-termination.

Depending on your condominium administrators, you might need to secure a permit prior to renting out your condo. Attach the leasing permit to your contract, together with the Proof of Ownership, the Official Receipt and Tax Registration, and a list of inclusions as an annex.


Build a network
When your tenant calls you about a leaky faucet or burnt-out light bulb, you should have a handyman lined up to do repairs. Unless you are willing and capable to handle the maintenance yourself, it helps to have a network of trusty plumbers, electricians, and repairmen you can turn to when the need arises.

Manage the finances
You might want to open a bank account solely for your rental business. This will help you see how the cash flow is going, especially the income and the expenses. For instance, the two- month advance and security deposit you required may cover the unpaid rent and the repair damage. Once the tenant vacates your condo, you will have to return the deposit less damages incurred.

Nurture a healthy landlord-tenant relationship
Since you are practically letting a stranger into your property, establishing trust is important. As a landlord, you must reach out to build a healthy landlord-tenant relationship. Respect each other’s time and learn to compromise every now and then. Mutual respect and professionalism are the keys to smooth tenant relations.

Undoubtedly, renting a condo is a great additional source of additional income. With the rising demand for condominiums for rent in the Philippines, anyone can be a landlord. Like any business endeavor, however, leasing out your property requires a whole lot of planning and commitment. Take precautions when starting as a landlord. Over time, your condo rental will prove to be a rewarding investment.

Want to invest in a condo for rent? Check out Federal Land condos in the Bay Area and in Ortigas.

Investing in real estate in the long term is an excellent addition to one’s investment portfolio. Purchasing a property is both low-maintenance and high-return investment. A condominium property can be rented out and provide a passive monthly income to the investor. In a few years’ time, it can then be resold to maximize the market value of the property.

With the construction boom in the country, real estate investment is not for the bourgeoisie only. Any Filipino with enough savings can afford the opportunity to invest in real estate.

So instead of letting your hard-earned money sit idle in a bank account, why not try your hand at real estate investment. Here are some guidelines to help you acquire property for investment without a hitch.

Find a Bank

Buying a property is a huge financial move. So the first step in investing is to make sure you have enough capital to complete the transaction. If you prefer to pay cash upfront, prepare enough to cover the total contract price, documentary stamps tax, transfer tax, registration fee, and notarial fees.

If you are going the route of the mortgage or housing loan, it is important to know how much a bank can lend you. You can go check online for a home loan calculator of reputable banks like Metrobank and PSBank to know. The computation is based on the loan amount, loan term in years, interest, and your gross monthly income. Though the online loan calculator result is not legally binding, it is important to understand how much you can loan from the bank. This will guide your search for the property suited to your budget.

Need an urgent loan, PSBank now offers one-day loan approval, convenient housing loan terms and great rewards with PSBank Home Loan with Prime Rebate.

Establish the specifics

Determine how the prospective property will be used. Then you can decide the type and location most suitable for your plans. Will you rent it to students, office workers, or tourists? Establishing the specifics will also help you consider the renovations and furnishings you will be willing to spend on the property you are eyeing.

For instance, you have decided to cater to office workers. You will then look to invest in condominiums for sale near Makati, BGC and Pasay business districts. Consider taking advantage of pre-selling rates of Palm Beach West- Baler Tower located within the Entertainment City in Pasay to cash in on the growing rental market of offshore gaming firms.

Call a friend

With the current construction boom in the country, there are many available properties to choose from. To avoid choice paralysis, talk to a trustworthy broker. Property acquisition can be a daunting task, especially for first timers, so real estate agent is your friend. Asking assistance from a reliable property broker will make your purchasing transaction a whole lot easier instead of directly dealing with the seller or the developer.

Also, ask friends who are already in the real estate investment game to recommend a reliable developer with a solid track record like Federal Land.

Prepare the Papers

Acquiring a property requires proper documentation to assure the legality of property ownership. Ensure that you have the necessary paperwork in order such as:

• Fully accomplished Reservation Application Form
• Fully accomplished Buyers Information Sheet
• Government-issued ID (bearing the client’s picture and signature)
• Passport
• Duly filled-up BIR Form 1904/1903
• Community Tax Certificate
• Latest Proof of Billing
• Latest Income Tax Return
• Withholding Tax Remittance
• Certificate of Employment with Compensation
• Two Years Bank and/or Financial Statements

Request for the full list of requirements from the seller or developer and comply accordingly to avoid the hassle of returning to the office or incurring penalties.

Write that check

Depending on your financial capacity, there are various payment plans available such as in-house financing and bank financing. Request a sample computation and determine which among payment plans is the most practical for you. Carefully consider the pros and cons of each plan before deciding.

If you choose to pay in installments through in-house financing, know that a complete set of post-dated checks is a requirement for monthly amortization or down payment. In case you do not have a checking account yet, set up one. Just make sure to fund it sufficiently for the monthly amortizations.

It is also important to make sure that the Transfer Certificate of Title, Deed of Sale, Contract of Sale and other relevant documents on the property are filed on the Register of Deeds.

Inspect the unit

Before taking the keys, make sure that you and other family members inspect the unit before the turnover of the property. Check for the condition of the load-bearing walls, floors, water pipes and electrical provision among others. Best if you can bring an experienced inspector to ensure nothing is amiss before the turnover.

Wait for the Cash to Flow

There are two basic ways to make money out of real estate: reselling and renting. Because of the rapid developments within the country, properties go up in resell value anywhere between 10 to 100 percent every year because of appreciation. Rental properties, especially near business hubs and university belt, also enjoy good yield as the demand for nearby dormitories is constant.

However, understand that buying low and selling high is not as easy as it sounds. A property in a good location always fetches a good price, but buyers and renters may not always be present. Hence, you should be ready to wait for some time.

Acquiring a property and starting a real estate investment may sound overwhelming. But what is a couple of months stress for an asset that will make you money for years? My answer: the ticket to financial freedom.

With Federal Land, investing in a condominium is easy. Contact a representative to inform us of your intent to buy, provide a Philippine government-issued ID (with your Tax Identification Number), fill up the required forms, pay the reservation fee and voila! The unit is yours. And we are ready to start your home loan application through in-house or bank financing.
Federal Land Inc. offers condominium units for sale in Makati; BGC (Fort), Taguig; Binondo and Paco, Manila; Entertainment City, Pasay; Greenhills, San Juan; Quezon City; Marikina; Cebu as well as in General Trias, Cavite. For lease to own plan details or pre-selling reservations, email us at digital.mktg@federalland.ph.