Strategic Tips on How to Successfully Rent Out Your House

Rent out your guide without a hitch. Want to know how? Read this guide!

By: Eunice Sheene Fulgencio | October 22, 2018

With the current state of the Philippine economy, tightening the belt is not only practical but necessary. Now is the perfect time to embody the belief that Filipinos are indeed resilient and can think of skilful ways to bring home more pesos. Some might take a couple of part time jobs or even sell handmade products, but one stable and lucrative business endeavour is to rent out your home.

Now, not everyone might have the privilege of having a spare space to turn into an investment, but for the ones who are lucky enough, looking into it is definitely a sound idea. Not only is it a consistent additional source of income, but it can also serve as a good experience and practice in managing your own finances. Of course, there are a few dangers involved and a few precautions must be taken for things to go smooth sailing, that’s why you would need some strategic tips on renting out a property. Read on to see some tips on how to rent out a house in the Philippines.

1. Restore your home.

Your home should be in top condition, no matter who the tenant is.

Trying to rent out a house is synonymous to dating: you have to put your best face forward in order to pique the interest of others. Not only will it get a higher chance of renters to become excited to live in your space, but doing a few refurbishes will also raise the entire house’s rent value. Check the paint, the wiring, the drainage, even possible signs of infestation. No one would consider living somewhere unsafe and neglected and your house is no exception.

See More: Smart Condo Renovation Tips for Your Unit’s First Makeover

2. Set a fair price.

It is crucial to steer away from both undervaluing and overvaluing your house.

Even though your primary motivation in renting out your house would be for income, you should also set a fair, competitive price on it. Note that your property isn’t the only option available since more and more people are trying their hand in it. Check online sources, newspaper sources, even the average pricing of the other houses for rent around your neighborhood before deciding on a final value.

3. Have a solid lease

Whatever you do, never ever be careless about the lease.

The lease you create before handing over the keys to anyone will save you in case things go awry along the way. Well-written, well-detailed leases will be your saving grace if your tenant breaks some rules or has some extravagant requests in the future. Make sure your lease includes a specific rent cost, the required length of stay, house rules and penalties, and security deposit prerequisites. If possible, have a lawyer look over the lease to ensure that it is fair and airtight.

See More: Rent Control Act: What Are Your Rights as a Tenant in the Philippines?

4. Switch from homeowner insurance to landlord insurance.

Your updated insurance policy can also help save you in the future.

There are bound to be changes as you transition from homeowner to landlord, and the insurance you should get is one of them. While the homeowner insurance only covers damages, structure, as well as the belongings inside the property, the landlord insurance will help protect you from legal costs, structure, and possible damage that could be caused by the tenant.

5. Consider hiring a property management company.

Metro Manila alone has quite the number of reputable property management companies.

House renting isn’t one of those “I screwed up this time but I’ll do better next time” scenarios. Do-overs are close to impossible as you can suffer from major financial loss. This is why seeking help from people who are experts, e.g. property management companies, is a step towards the right path. Not only do they know the ins and outs of the entire process but they also have a list of contacts for possible tenants in the future.

6. Choose your tenants wisely.

Correctly selecting tenants is one of the most important factors.

All the hard work you put into this endeavour would be useless if you end up trusting your house to the wrong people. As a landlord, you need to be at your most critical and careful when it comes to selecting your tenants. Have an extensive list of requirements they need to comply such as employment details, proofs of identity, and a clear criminal history. Also check their credit score as this is a telltale sign of whether or not they can pay the rent religiously.

Renting out your house could either be one of the best or worst experiences of your life. To make sure it turns out to be the former, make sure to remember the tips we gave you and follow them faithfully.

Do you have any tips on how to rent out a house in the Philippines? Let us know in the comments below!

About Eunice Sheene Fulgencio

Eunice knew that she’d be writing for the rest of her life from a very young age. Naturally introverted, she is selective with how she uses her time and who she spends it with. Has a penchant for sweet treats, sentimental proses, and online personality quizzes. A true-blue INFJ.

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Source: https://yoorekka.com/magazine/metro-manila/2018/10/19/how-to-rent-out-a-house-in-the-philippines-tips-to-remember