So you wanted to use your home as one of your income sources while you are away, but you don’t know where to start? Here are a few steps to help you turn your home into a rental property.
Know Your Numbers and The Law
Before you consider using your home for rent, know your numbers. How much will you charge for rent? Consider your investment in your property. Take note of your mortgage repayment, utilities, maintenance and repairs. That can be your basis on how much you will charge for rent.
Is your property with or without furniture? Most tenants would prefer a fully furnished home so consider this expense as well to factor in your rent charge.
While it will be a year since the country has been in quarantine, you may also take into consideration the financial status of your potential tenants.
Read on the Rent Control Act when preparing your terms on charging the rent and how you would charge your tenant.
Identify Your Target Market
Next is consider your target market. Where are you located?
Is your property located in the suburban area or within the central business district? Is your area near a school, public facilities, office or other properties? Are you surrounded with residential high-rise buildings, condominiums, business offices or apartments?
Who will be your prospective client? Is it a family? Expat? Or expats with family? How old is your target market? Is it the corporate CEO or an associate? How much is their salary range?
Look At Any Necessary Improvements In Your Property
So you have identified your target market, and you saw that your location may be favorable to a premium tenant. To ensure you get your ideal client, maybe have an updated theme suitable for high-end clients: maybe a minimalist or industrialist look would be a good upgrade in your property.
You may also consider turning your property to a renewable, efficient and sustainable unit. It may be expensive at first, but the benefits outweigh the costs.
Get Social
Now that you have considered your charges, your target market and your possible upgrade, consider where will you post your property and how will you even reach your target market. Time to get social!
Social media plays a major role these days to reach potential clients even with properties. As of January 2021, the Philippines stay on top spending their time being on social media for 4 hours and 15 minutes and with the pandemic, more and more people are using social media to connect.
You may also need to polish on online marketing skills when it comes to the look and feel of your social media. Timing and virality of the posts will have an impact on your call to action or sales conversions.
Grow A Community Than Hard Sell Your Property
Reaching to your immediate community is still a big factor when it comes to meeting your prospective market. You may sponsor an event or an activity in your community to build awareness to the public, unless you want it as a private property. If so, word of mouth is still the fastest way to spread the news and there is a higher chance you will get your tenant.
But also remember, you are not just out there to search for your ideal tenant by selling your property, you are also selling the environment that surrounds it. The area where your home is may have a park, a sports complex, a public library, a nearby mall or have a spacious parking lot, and other familiar landmarks. This way, your property will be more favorable than ever.
References:
R.A. No. 9653 or Rent Control Act of 2009.
PH Remains Top in Social Media, Internet Usage Worldwide.
6 Marketing Strategies That Will Help You Rent Your Property.
Q&A: I’m Planning to Put My Property Up for Lease. What Do I Do?