Apartment/house rental business

[7391N]

Anybody here involved in this type of business? I thinking of 4-unit, identical, side-by-side apartments.

What are the things to be done to insure regular payment from the tenants? Are there contracts to be signed between tenants and landowner? If yes, what are the duration of the contracts (six months? one year?)? What about the maintenance of the units? How much does it usually cost?

If any of you guys have other relevant ideas/ advices regarding this, it will highly appreciated :D

[ghosthunter]

What are the things to be done to insure regular payment from the tenants?

rent to people with families & regular businesses (of good standing). Expats also are good payers (in general).

Are there contracts to be signed between tenants and landowner?

yes, a contract of lease

If yes, what are the duration of the contracts (six months? one year?)?

typical is one to two years but there are six month contracts.

What about the maintenance of the units? How much does it usually cost?

depends on what you are refering. If its the physical maintenance, the day-to-day cost is to the lessee. But if its structural, electrical or plumbing, its to the owner's. Association dues are paid by the lessee. Taxes are paid by the owner.

If any of you guys have other relevant ideas/ advices regarding this, it will highly appreciated :D

[mazdamazda]

mabagal ang ROI ng mga ganito... dapat either upscale townhouse or small & cheap apartments ang gawin mo.

one year contract... advance payment of one month and deposit of of one month... the advance payment ensures that they have a "buffer" when they default. the deposit for for just a guarantee so for unpaid utility bills that they might occur when they leave.

[docpete]

meron pa ba yong limit sa increase ng rental? Have a 4 unit apartment pero gave that to missus.Never inquired about its operations.

[Altis6453]

Depends on the amount of rentals you've been charging. If its really low, it can fall under the Rent Control Law which would limit your ability to increase rentals in the future.

[Psylocke]

Very slow ROI.

Tenants give you all kinds of heart-breaking stories on why they can't pay right now.

"Baboy" tenants leave your units in a mess.

Fly-by-night tenants gone in the morning.

Basically apartments aren't very lucrative...

[mazdamazda]

You can also state in the contract an automatic escalation clause if they want to renew the contract... sa amin 10% ang ganun.

Kung bibilhin mo ay existing structure na... ok yun. Pero kung mag build ka from ground up... medyo matagal ang ROI.

[oldblue]

kikita ka lang dyan kung paparenta mo tapos sasanla mo at the same time. para ma-maximize mo opportunity.

[buriroy]

I'm renting out a couple of townhouses, and from my experience
its very important to "screen" your prospective tenants.

Mas maganda kung makakuha ka ng DINK (double income no kids).
Yung young married couples (preferrably professionals) with jobs
at reputable companies.

Iwasan mo yung mga pa business-business lang. Hindi steady
ang income nito.

[chieffy]

I'm renting out a couple of townhouses, and from my experience
its very important to "screen" your prospective tenants.

Mas maganda kung makakuha ka ng DINK (double income no kids).
Yung young married couples (preferrably professionals) with jobs
at reputable companies.

Iwasan mo yung mga pa business-business lang. Hindi steady
ang income nito.

okay itong payo ni buriboy...

ako naman ay lessee at hindi lessor...matagal nabakangte itong nirerentahan namin ngayon yun pala sinasala nilang mabuti ang background ng prospective lessee...gusto niya sure yung income, masinop at konti lang nakatira...

mas maganda kung one year contract at hingan mo ng PDC's...one year deposit at one month advance...ilagay mo rin sa contract na yung deposit makukuha after 45 days kapag umalis na yung tenant pagkatapos ng kontrata para may contingency fund ka sakaling may nalimutang bayaran yung tenant na bills/payables ...