Renting your Property

Renting out your house and managing renters both involve time and money. Your choice to become a landlord should be guided by market circumstances and predicted property values, as well as your long-term aspirations.

Taking high-quality images of each room in your rental home is the first step in marketing it. You may then start composing your rental ad. You’ll need to figure out:

Create a clear rental advertising that details the rental property and includes the price, location, lease period, and incentives. Consider your ideal tenant and target them in your advertisement. Your objective is to differentiate your property from the competition while still providing all a potential renter needs to know to make an informed decision.

Once you’ve identified the perfect renter, negotiated the monthly rent, and determined the size of the security deposit, you must draft a rental agreement that protects your landlord rights.

A tenancy agreement typically includes the names and contact information of both the landlord and the tenant, the period of tenancy agreed upon by both parties, a description of the rental property, the monthly rent, the amount of security deposit, the monthly due date, mode of payment, bank account details, the rate of annual rate increases, and the advance amount paid by the tenant.

Typically, there is a rent-free term of one to two months during which the lessee is permitted to use the space and any necessary fit-out takes place.
Rent is expressed as a gross number per square meter per month in the Philippines.
Deposits are normally the equal of three months’ rent, with advance payments for three months based on the rental rate in the first or last year. Rental escalation is normally included in the lease and is usually set at 5% each year, however this might vary depending on market conditions.

Here are some helpful tips for finding the ideal tenant for rent your property :

1. Make certain that your property is exposed to the appropriate target market. A dependable and trustworthy real estate business with extensive knowledge and skills in the local market can best assist you in reaching appropriate consumers. Residential Asset Management services may substantially assist you in managing your homes, particularly the leasing process.

2. Market your home online to create as many leads as possible, especially in these exceptional times when clients cannot undertake actual viewings. Price your home accurately based on current rental prices in your area.

3. Check that your property is in excellent functioning order, that it has been sanitized, and that it has been appropriately arranged for customer viewings.

4. Highlight your property’s best features by making upgrades that your ideal tenant will like. These may include adding extra storage space, updating old bathroom and kitchen fixtures, and replacing obsolete appliances with energy-saving or inverter models. You can never go wrong with earth toned palettes when choosing furniture and wall colors because they often combine beautifully with any design. These upgrades will not only increase the value of your house, but will also make it easier to rent your property out.

5. Screen your prospective renters to verify they are a good fit for you. Examine their capacity to pay their rent and utilities, as well as their past.

6. Once you’ve decided a tenant for rent you property, draft a detailed contract and document the property’s condition at the time of move-in. Remember that any correspondence with your renter should be in writing.

7. Always be prompt and reasonable in responding to your tenant’s concerns; this will pay off in the long term by developing a mutually beneficial relationship.

Finding a good tenant will give you with security, protection, and will keep your property in excellent condition while giving you with a consistent rental income. Though searching and selecting the best tenant for your home may appear to be a difficult endeavor, keeping these principles in mind and having a clear picture of what you want in a tenant will make the decision process easier.

There are five categories of residential real estate in Philippines: condominium unit, apartment, house, villa and room.

Condominiums (abbreviated “condos”) are separate units in a big building or group of buildings. Condominiums often share at least one wall with other units and are managed by a community management organization or homeowners’ association (HOA). An extra charge is required by the homeowners’ association to assist pay for upkeep and access to any public spaces or facilities. While you might purchase a single unit, you do not own the entire complex.

An apartment building, as opposed to condo apartments, is often owned by a single person who leases it out to tenants. Like a condominium, the structure features many apartments that share walls.

When you reside in an apartment, you do not have to pay a monthly Homeowners Association (HOA) fee. Depending on your landlord’s agreements, maintenance and upkeep may be included in the rent or you may be liable for it entirely. Rent is frequently less expensive than a monthly mortgage payment. It will be easier to relocate later if you wish to do so.

People who seek the benefits of living in single-family houses and condominiums might consider purchasing a townhouse. It is less expensive than the former yet has greater room than the latter. This is what makes a townhouse an excellent choice for young families.

When you buy a townhouse, you pay for both the house and the property, just like a single-family home. Townhouses are constructed in a multi-housing complex, so units are connected to one another. These are usually multi-story buildings with a parking garage and, on sometimes, an outside mud area.

Townhouses are frequently developed within gated communities to boost your security 24 hours a day, seven days a week. You may enjoy amenities such as a swimming pool, a gym, and more, just like if you lived in a condominium. Some developers also include event rooms, playgrounds, and plenty of green space outside.

If you want privacy, a single-family home in the Philippines is a good option. There are ads for gated communities with security guards, ensuring that all visitors are checked before entering.

When you hear the term “single-attached home,” it signifies that one side of the house is built on the lot’s boundaries. Because you share a boundary with a neighbor, a wall is constructed between the two properties, hence the name single-attached home. This sort of residential property is often less expensive than single-family residences.

If you wish to live with extended family, you can buy two lots that are built next to each other. You also don’t have to be concerned about noise because modern homes have insulated walls. The shared wall is generally assigned to the garage area in certain houses. This way, you may maintain your privacy.

A single-detached home is a residential construction that is unattached to the neighboring house and has space on all sides. This provides homeowners with extra seclusion, especially if the land is large. If you have children or dogs, they will enjoy the outside space!

With the additional room, you will be able to design your house to your liking. If you build your house far enough away from a neighbor, your building activities will not bother them.

When it comes to resale value, single-family houses will give you with a steady income. Many low-income families prefer this choice because it provides more privacy and independence than other types of residential complexes.

Purchasing a rental property is one of the best methods to produce consistent, long-term income. It also has various other advantages, such as:

Tax advantages: Unless you create a company and submit corporate taxes, rental property is not subject to self-employment tax like other home enterprises.

Rental properties also benefit from depreciation, which may be deducted from your taxable income each year to account for wear and tear on the property. Depreciation lowers the amount of tax you pay on rental income, but it may raise your capital gains tax once you sell the property.

Along with depreciation, landlords can claim several business deductions, such as property insurance, mortgage interest, advertising, property tax, maintenance fees, and much more.

Property appreciation: It’s typically acceptable to assume that the value of real estate rises with time, implying that it rises in value. When it comes time to sell, the appreciation, generally known as capital gains, is taxed. Although property value is determined by supply and demand, real estate acquired in a good location can be sold for a good profit.

Cash Flow: Renting a property generates consistent income flow as long as there is a tenant paying rent. You receive a rental payment each month, and the money you make after paying your mortgage, utilities, and other costs is yours. A rental property’s income is also more dependable than that of other assets, such as a regular business, because a monthly payment delivers constant cash flow that is more than an usual dividend.

In the Philippines, tenants are entitled to the protection of rent laws. According to statistics from the Philippine Institute of Statistical Research and Training, the majority of tenants in the country, 97%, pay a monthly rent of PHP 10,000 or less. we will focus on the provisions of the Rent Control Act relating to tenants’ rights. Here are the basic rights you should know:

Landlords are not allowed to raise rents above the legal limit. The Housing and Urban Development Coordinating Council (HUDCC), a government organization in the Philippines that oversees residential leases, has set limits on rent increases based on the Rent Control Act.

Under rent control law, landlords are only allowed to charge a two-month deposit and one month’s advance rent.

Rent control legislation also requires landlords to hold the deposit in a bank account in the landlord’s name for the duration of the rental agreement. At the end of the contract, the deposit and any interest earned, as well as the remaining advance rent, must be returned.

The landlord cannot ask the tenant to leave the house without a specific reason. You cannot evict someone for unfair reasons.

The Civil Code of the Philippines [Articles 1654-1688] establishes a fundamental framework for the terms of rural and urban property leases. The owner of the land or property, on the other hand, should be aware that the law contains rules requiring the “custom of the area” to be respected in specific instances. In a country with almost 60 ethno-linguistic groupings, customs can be surprising, particularly in rural regions.

The Rental Reform Act of 2002 (Republic Act No. 9161) governs residential unit rentals with monthly rents not exceeding PHP 7,500 (US$141) in cities and PHP 4,000 (US$75) in all other places. Although it expired in 2004, the restrictions are nevertheless regularly observed in the lower section of the rental market.

The decision to evict a tenant must be based on the grounds provided under Philippine rental legislation. The Rent Control Act only allows for eviction for the following reasons: