Leasing Condominium in Manila
This article is about tips and tricks for unit owners / prospective buyers who plans to lease their condominium units at the most attractive rental rates.
To start with as the experts always say Real Estate is all about Location Location Location. In simple terms not all Real Estate Properties can be considered as an investment. It’s only an investment if it returns profit and not just sit there unoccupied. A property is only an investment if you get to lease the condominium unit wherever it is located. First and most important tip: Purchase only properties at Business Districts if your purpose is for rental income. Prices are definitely higher than neighboring locations however Occupancy Rates and Rental Rates inside Business Districts are always high. In the end, you may be able to purchase a condominium with lower pricing outside the business district but also have a hard time renting it out which makes your Real Property a liability than an investment.
There are only 3 well established Business Districts in Metro Manila, recommended as follows: Makati, Global City and Ortigas. Makati will always be top of mind, easiest to rent out with highest rental rates. Remember, tenants in general are mostly office workers who prefer to walk to work and escape all sort of traffic. These 3 areas are your best bet in fastest and easiest path in leasing condominium units.
Second tip is don’t forget to purchase a parking slot. The prices of parking slots have gone up significantly, now around Php 1,000,000 but hey these increased for a reason. It’s a definite advantage having your own parking slots inside Business Districts. Yes there are paid parking outside however you’ll have to line up several hours for that, also overnight rates are ridiculous. Consider it a must to have condominium unit with at least 1 parking slot. Parking are also scarce in the City, it may affect leasing your condominium unit.
Third tip is to make your unit livable and unique compared to all other units in the building. When you purchase a condominium unit from a developer, let say Megaworld, they will deliver and hand over the unit exactly the same as all other units in the building. Consider other units your competitor too, making yours unique would surely be a plus. Minor arrangements would do, changing wall colors, small furnitures, adding mood lighting is sometimes already enough to lease your condominium unit faster.
Fourth tip is don’t try doing all the work yourself. It is highly recommended getting reputable Licensed Real Estate Broker. Put a lot of highlight on LICENSED. Make sure you are transacting with a duly licensed and accredited Real Estate Broker, ask for their PRC ID and you may also check authenticity thru Philippine Regulation Commission. Leasing Condominium Units is not an easy task, get an expert to help you. Time is gold, the faster you land one the better.
Fifth tip consider giving your Real Estate Broker exclusive right to lease the property. Most unit owners feel it’s faster to lease their unit if they allow as many brokers to market it. Experience say that’s not the case most of the time. Brokers will not spend marketing the unit if it’s not under exclusive right, yes they’ll take note of your unit and include it on their list but they are not going to go out of their way to market it. Of course that all changes under exclusive right. In this set up only the Broker is allowed to market the unit which means they can do paid marketing and include all efforts in advertising the unit since all results will surely be under them.
Real Estate leasing as a landlord is definitely a fun and exciting journey! Make sure to build good relationships with your tenants and brokers. These will surely be the same people you’ll work with for several years. Makati City tenant lease tenure, those working inside Salcedo Village and Legaspi Village, at average stay in the same unit for at least 3 years.
Enjoy the journey and should you need further tips / tricks and actual help in leasing condominium units feel free to get in touch with us!