Investing in real estate is a surefire way to earn passive income. Property developers in various countries like Philippines, Thailand and Malaysia, offers condos for sale at reasonable financing terms. Therefore, owning a property is much easier and more affordable nowadays.
Keep in mind to choose a strategically located property that best suits your target market. After everything else, the big question is: how do you profit from your condo unit? There are two ways to earn from investing in a condo unit. All you need is to determine the setup that matches your goals.
Lease It to Long-Term Tenants
Earn extra cash every month with a property under your name through long-term lease contract. This means that your contract for lease is for a minimum of one year.
With long-term lease, you can expect a steady monthly income. You need not worry about constantly answering messages or inquiries about your condo unit. Once you find a tenant, all you need to do is deposit the post-dated cheques issued to you upon contract signing.
Be sure to maintain a good relationship with your tenants. If they like the way you manage your rentals, your unit, and the building services, they will most likely renew their contract of lease for another year, and the next after that.
Buy and Sell
Buy a condo at its pre-selling rate and resell it when it’s ready for occupancy. This method is perfect for you if you are willing to let your money sit for a few years with no expected profit. Remember, great things come to those who wait, especially with real estate in which properties appreciate in value over time.
Just wait for approximately 3 to 5 years for the turnover of your brand new unit. By this time, you can find a buyer who is eager to move into a brand new, unused unit.
Tips to Ensure Steady Earnings
Once you’ve decided which profitable method is best for you, here are some considerations to make sure that your condo stays a healthy cash source.
Identify Your Market
Knowing your target market or ideal tenant is essential for your new business venture. Conduct proper research about who you want to potentially rent out your unit to or resell to. Assess who your condo unit is ideal for. Is your target market young professionals, new couples eager to start a family, or foreigners and expats?
Furnish Your Condo
Renovate and furnish your new condominium unit according to your target market’s needs and preferences. A semi-furnished condominium unit has a higher selling or renting price than unfurnished units.
Fully furnished condos have a much higher rate. It’s also easier to find tenants and buyers for furnished apartments rather than bare units. A state-of-the-art design and layout will sell faster and higher especially if you are targeting high-income Filipinos and expats.
Lastly, maintain your unit through regular cleaning and repairs to retain its good value.
Post your advertisement on reputable sites such as Lamudi and OLX, among others. The more listings you post, the better!
Include all the pertinent details about your property in your listing—amenities, pet policy, furnishings and appliances, security, developer information, available transportation services, location, and proximity to establishments. These are all important for tenants to assess if your condo unit suits their needs.
Be sure to take good photos that showcase your place’s wonderful features. Include images of amenities and common areas to give potential tenants and buyers a better picture of the kind of life that awaits them in your property.
Treat Your Tenants Well
Give your tenants a great experience and maintain a good relationship with them. We’ve mentioned this earlier, but we want to emphasize it more.
As a landlord, a 5-star rating and a recommendation to other people are important. And of course, you want them to return.
For long-term leases, a tenant who renews for another year eliminates the need to make necessary repairs and renovations, relist your property, and find another lessee. A happy tenant means another year of steady income for you.
If you want to earn passive income and have a real estate property under your name, there are a lot of condos for sale that you can check out. Just think about the money you can potentially earn from a smart real estate investment!