This post is for families, couples, or individuals who invested in condominium units and are now ready to turn their investment into an income stream.
Whenever someone hands out a flyer for condo units they say “investment po“. But like many financial advisers say, properties only become investments when they start working for you and provide you with additional income.
Aside from outright sale of your condo unit, many condo owners are thinking of renting or leasing their properties. Where should you start? Here are some information based on my experience.
1. Property management – some developers like SMDC have their own arm of property management. This means you can ask them to manage and rent or lease your property instead of doing it on your own.
This involves filling up some forms, contracts, taking photos of your unit, and furnishing it to their standard. I did not reach the stage of asking about commission rates because I found the paperwork tedious including the photo requirements.
2. Agents – some people will offer to manage the renting or leasing of your condo unit. Sometimes you can find these agents regularly within the building, especially when they are already managing several units in behalf of the owners. Unlike going through property management, the transaction is one on one, making it more convenient and personal.
However, this involves a level of both risk and trust. Do a background check before handing out your keys and clarify terms of payment/remittance, commission rate, invetory of your unit, and your set of house rules.
Although transactions are more personal dealing with agents, the agreement is less formal which is not suitable for risk averse people. However, I have the notion that this is the most convenient of all options. Commission is 10% of rent income.
3. Real Estate Franchise Company – the latest option I learned about is having your condo unit managed by a company like RE/MAX. The process involves calling their hotline 63 2) 511-1429 to 30; 511-1943 or e-mail info@remax.ph, schedule a property visit from a RE/MAX agent, and they will take care of marketing and renting out your property.
I talked to one of their agents and he advised me it’s best to have your unit available for lease at a minimum of 1 year. RE/MAX also has their own website where property hunters aka potential lessees or tenants can search and find condo units including your own.
The advantage of dealing with a real estate franchise company is their experience and working with certified licensed agents. This is favorable especially when you are anxious on finding an agent you can trust and/or have the ability to go after in case of unfavorable circumstance. RE/MAX has the largest global network of highly successful brokers and agents in 100 countries.
I have the notion that working with a company like RE/MAX will be the most formal & secure of all options. Commission of the firm is 1 month out of 1 year rent but I am sure it can be flexible depending on property and owner’s negotiation.
Exploring their website, I found they also provide free resources for both agents and lessors like this guide from Robert Kiyosaki: 6 Steps to Investing in Real Estate.
4. Do it yourself – some condo owners list their own properties for rent in websites like AirBnB. You will directly deal with inquiries, lessees, receiving payment, and marketing your property.
The problem I see on such sites is the price wars that drive rent income to minimum as well as dealing with massive inquiries. This is perfect for owners who have the time and/or are residing near the property they want to rent out.
Aside from using sites like AirBnB, some successful condo owners rent out their property to friends, balikbayan relatives, and use word of mouth marketing.
Regardless of which option you decide to take, remember to always practice due diligence in choosing and working with an agent.
Have you successfully rented out or leased your condo unit? Please share your tips below via comments 🙂
