February 3, 2025
Renting a property in Manila can be both a rewarding investment and a practical housing solution. Whether you're a tenant searching for the ideal rental or a property owner looking to maximize income, understanding the Manila real estate market is crucial.This guide highlights five essential factors renters should consider and six key strategies landlords can use to increase rental income.
For Renters: 5 Important Things to Look Out for When Renting a Property in Manila
1.Choose the Right Location
When looking for a rental property in Manila, location is a crucial factor. Choose a rental property near your workplace or one with easy access to public transportation to minimize time spent in Manila's notorious traffic congestion. Additionally, research crime rates and assess if the neighborhood aligns with your lifestyle. Business districts such as Makati, BGC, and Ortigas provide convenience, while quieter locations like Alabang and New Manila offer a more relaxed environment.
2.Budget Wisely
Rental costs vary depending on the location and type of property. Prime areas and high-end condominiums with premium amenities tend to have higher rental rates. Be prepared to pay one to two months' rent in advance and a refundable security deposit, which is usually equivalent to two months’ rent. Aside from rent, factor in additional expenses such as association dues, utilities, and parking fees, which may not always be included. If you’re considering a long-term lease, landlords may be open to negotiating the rental rate. Expatriates should also keep an eye on exchange rate fluctuations, as these could impact rental costs over time.
3.Understand Legalities & Documentation
Before signing a lease, carefully review the agreement, paying close attention to clauses related to maintenance responsibilities, lease renewal terms, and termination conditions. Familiarize yourself with tenant and landlord rights under Republic Act No. 9653, also known as the Rent Control Act, which regulates rent increases. Ensure you have the necessary documentation, including a valid ID and proof of income, and always request official receipts for any payments made.
4.Inspect the Property Thoroughly
A thorough property inspection is essential before committing to a lease. Check for structural issues such as damages, leaks, or faulty appliances. Additionally, verify if the property has adequate security, well-maintained common areas, and functional amenities. Visit the property at different times of the day to observe noise levels and traffic conditions. Speaking with current residents can also provide valuable insights about the property and the landlord.
5.Work with Trusted Real Estate Professionals
Engaging with licensed real estate brokers or agents can simplify the rental process and help you avoid scams. Use established online real estate platforms to browse listings and read reviews. If you have concerns about your lease agreement, consider seeking legal assistance to ensure that all terms are fair and legally binding.
For Landlords: 6 Strategies to Increase Your Manila Property Income
1.Rent Out Spare Rooms or Units
For property owners with multi-room properties, renting out spare rooms or converting the space into a boarding house can be a lucrative option. Properties located near business districts and universities are in high demand, making them ideal for affordable housing solutions. By optimizing space and maximizing occupancy, landlords can generate a steady stream of income.
2.Furnish for Short-Term Rentals
Short-term rentals cater to travelers and business professionals seeking temporary accommodations. If a property is in a prime location, furnishing it and listing it as a vacation rental can generate significantly higher income than traditional long-term leases. Providing modern furnishings, essential appliances, and a well-maintained environment can attract more guests and boost occupancy rates.
3.Find Long-Term Tenants
Long-term tenants provide stability and consistent rental income for property owners. To attract reliable renters, landlords should ensure their property is well-maintained, competitively priced, and advertised as an ideal long-term living option. Clear communication, timely maintenance, and good tenant relationships can encourage lease renewals and reduce turnover rates.
4.Work with a Property Management Company
Managing rental properties can be time-consuming, particularly for owners with multiple units or other commitments. Hiring a property management company can help streamline operations by handling tenant screening, rent collection, and maintenance tasks. While this service involves additional costs, it can free up time and ensure the property is efficiently managed and well-maintained.
5.Renovate and Upgrade
Upgrading and renovating a rental property can enhance its value and attract higher-paying tenants. Simple improvements such as repainting, modernizing fixtures, and improving curb appeal can justify increased rental rates. However, landlords should ensure that renovation costs are reasonable and aligned with potential rental income increases to maximize return on investment.
6.Lease Out Your Parking Space
Parking is a highly sought-after commodity in Manila's densely populated areas. If a property includes an unused parking spot, leasing it out to nearby residents or businesses can generate passive income with minimal effort. Many tenants and commuters are willing to pay a premium for a secure and convenient parking space, making this a practical way to boost earnings.
Whether you're a renter looking for a perfect home or a property owner seeking to maximize income, staying informed is crucial for a successful Manila real estate experience. Tenants should prioritize location, budgeting, legalities, inspections, and working with professionals, while landlords can optimize earnings through strategic rentals, property upgrades, and management. By understanding market trends and applying the right strategies, both renters and landlords can confidently navigate Manila's dynamic rental landscape.
SOURCES:
https://blackhouse.ph/insights/5-important-things-to-look-out-for-when-renting-a-property-in-manila/
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