Do you have an extra room because your child moved out for college? How about an extra house that you purchased before you moved in to your
new home? If you have an extra space and want to make money out of it, then
renting it to other people is the best way to generate income from spaces you currently don't use. And if you want to engage in a rental business here in the
Philippines, here are 10 tips for you to become a successful landlord.
Sign a Legal Written Agreement between You and Your Tenants
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This is a must have for every landlord. Some home owners feel that they don’t need to have a written lease of contract between their tenants.
This written agreement will actually save you in case there are legal problems that
you encounter with your tenants. In my case again, I let them sign a contract
of lease with many stipulations that states about the amount of rent, the do’s
and don’ts that I want to happen in my rented space as well as some legal
agreement that in case of failure to pay, I have the right to evict them in my
premise. You can have your lawyer write your contract of lease to include more
legalities.
Quality Products Equate Happy Tenants
Provide your tenants with quality products in your space so they will stay in your property happily and hassle free. This means that you offer them
with useful fixtures inside the room or the house. A functioning toilet, a
sturdy door and windows, running water and many more; these are some of the
things that you need to have for you to attract tenants as well as keep them for
years renting in your space. Quality products doesn’t mean you need to put
granite in your kitchen counters or install a pricey tub or lavatory in your bathroom. It
means that you need to provide better than average products in your rental
space for your tenants to live comfortably.
Create Policies for Your Tenants
Make rules that you implement guidelines in your rental space.
Some of these rules include how many months advance and deposits they need to pay
upon entering the premise, what are the rules about utility payments, etc.
Also, make guides about things they need to do or how they must behave when they
are in your premise to avoid conflicts and problems with you and your other
tenants. If you want to have a curfew in case you rent a boarding house, always
explain to your-would-be tenants about for them to know before they decide to
rent the space. Create policies and rules for a harmonious relationship with
your tenants.
Apply for Government Permits to Avoid Problems
In the Philippines, we have several government entities that you
need to get permits from in order for you to open a rental business. These are the Bureau of Internal Revenues, business permit in your local City Treasurer's office,
Bureau of Fire Department, and many more. Be mindful that there are fees you need to pay in order to apply for government permits.
Be Stern about the Rent Due Date
Many landlords
experience tenants that do not pay their rent on time. This is one of the
major problems that you encounter with a rental business. So always be stern
but still respectful. Do not be like a landlord which is usually portrayed in movies wearing duster with fan on one hand and the other hand on the hips swearing
and shouting for their tenants to vacate the place. Be strict when it
comes to the due dates of their rent since you had done your part in providing
a safer and better environment for them so they should in return the favor by paying their rents
on time - it is a business after all.
Always Screen Your Renters
Being a landlord opens your place to different
types of people you do not know. So always screen for the bad apples. It really
depends on you, on what is your idea when it comes to screening them. Some require a barangay
or an NBI permit before they rent their space. Others need a photocopy of their
government identification cards like driver’s license, SSS, GSIS and many more.
This will make sure that you are transacting with the right person.
Always be Mindful about Repairs and other Problems
If you rent a space, there would come a time that you and your tenants will encounter minor or even major problems in
your space. Leaking faucets, busted door or window jams, broken things are some
of the problems that you may encounter if you are a landlord. Your tenants will
give you notice about the problem so you need to start repairs immediately to avoid any more conflicts with your tenants. Always
remember that a happy tenant tends to stay longer. And longer staying tenants mean more
money every month for you. Have a sense of professionalism, especially in being
prompt when it comes to fixing problems with your property.
Know When to Outsource
There are many problems, may it be small or big that you face
being a landlord. If you can deal with small problems, then better do so right away to avoid spending
money to hire people to fix the problem when it gets worse. But if you need an expert plumber,
electrician or even a carpenter to perform the task, always know when to outsource. I
have a friend who rented his extra room to a tenant. One time, there was a problem with the drainage. Even though he doesn’t know a
thing or two about plumbing, he tried to repair the drainage and ends up ruining it
more. So you should gauge yourself on your ability to personally conduct repairs or have the job outsourced. Always keep your maintenance contacts for you to call them when you
need help.
Be Organized
Always be organized with your contracts of lease, receipts
and daily records for easy retrieval. These would come in handy in case there
are some discrepancies in your records. In my case, since I also rent spaces for people, I make it a point that I keep the contract of lease in one
folder in case there are some problems that arise in the rent. This will save
you time to seek legal papers for your accountant, lawyers and etc.
Move in and Move out Inspection
It wil be best if you document the space before the
tenants move in and before they move out to check if there are damages to your
property. If in case there are, you can deduct it in their deposits. These will
prevent you from shedding out your own money for the damages that the tenants had
caused.
So there you go. These are 10 amazing tips to be able to
become a successful landlord. So good luck and build your own rental business in the Philippines.
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