There is gold in residential leasing in the Philippines. According to recent studies, two thirds of Filipinos are looking for a place to rent. Bed space, dorms, apartments are just a few options for the Filipino renter and those with available space could be set to profit.
Considering residential leasing? Read this first before rushing into anything. We have collected some tips on how landlords in the Philippines should handle their finances that come from leasing properties.
Have goals
Having goals in the beginning of any business venture can help you outline your actions as to how to achieve them. Remember to keep your financial goals reasonable. Setting them high will only cause heartbreak when you’re not able to reach them. When this happens, the tendency of you jacking up the rental price is high. By keeping them reasonable, you can become a better landlord to your tenants instead of focusing too much on the bottom line.
Find balance
Do you have jobs to do other than managing your rental property? Your finances might take a beating if you are handling too many jobs. If you don’t think you can handle managing another property, maybe it’s time to find help in the form of a property management firm. These firms can help you maintain and manage your rental properties for a small monthly fee.
Put your budget in order
List your income and expenses and create a budget strategy based upon this information. Include your rental property’s taxes, loans, insurance and maintenance fee. Ask for help from your friends who have a background in finance or accounting to help you get a grip on what’s happening to your accounts. There are also several apps that can help compiling your budget on a weekly, monthly and yearly basis.
Learn the market
You won’t be successful in the real estate rental game if you sit idly by not doing your homework. Remember to always follow the latest market news. Is there any drop in renters in your area? How does the current political and security situation affect your business? Read the news, which you can always find here at dotproperty.com.ph, and create strategies.
Renovate
Don’t be afraid to renovate, especially your kitchen and bathroom. Did you know that having a quality kitchen can give you at least a thousand peso increase in value? Invest in your rental property and you’ll definitely reap the benefits in the end.
Screen the tenants
Just because a unit is vacant doesn’t mean that you should hurry to find a new tenant. Make sure the tenant you choose can pay for the rent and won’t leave the place trashed. Qualifications should be based on how steady their job is and how long will they be staying in your property.
Be good to your tenants
In the end, being good to your future renters can take you a long way. If you have a good relationship with a tenant, the chances of getting good PR for your properties is higher. And wouldn’t it be nice to have some good vibes surrounding your business?
Being smart with your money is part of being a good and successful landlord. If you have any doubts in your capability to handle your finances, do not be afraid to seek help from an accountant or a financial manager. Follow the tips above and you’ll be on the right path! And if you are looking to rent out your property, be sure to list it here at dotproperty.com.ph.