The residential rental business is one of the in-demand businesses nowadays in the Philippines, whether in the metro or a tourist destination. This demand is due to a growing number of families and individuals moving to different places in the country for leisure, work, and educational purposes. With a high demand for properties to lease, the income and ROI for starting a residential rental business is also guaranteed, making it a good and stable source of passive income for individuals and families.

Photo by Harmen Jelle van Mourik on Unsp

If you’ve just purchased a house and lot for sale, you may consider starting a residential rental business. However, there are also certain pros of renting out an apartment. If you face this decision, this article will hopefully help you determine which one suits you best.

What to Expect When You Rent Out a House and Lot

For beginners in the residential rental business, renting a house and lot is the best way to go. This is especially ideal if you own a vacation home in one of the tourist-friendly areas in the country or an extra home in a major city.

Suppose your home is located in a tourist city like Siargao or El Nido. In that case, you can lease your home on a short-term basis, often to vacationers who need to occupy a bigger home during their visit. If you own a home in a major city in the country, such as Metro Manila, expect that it will be rented for a long-term basis, which assures a more steady income. Families or even groups of employees will often be your primary potential tenants.

Renting out a house and lot is ideal because you can focus your attention and finances on one home only, so if any repairs should be made, it is easier to address them so long as you have the needed funds. Moreover, since you’re renting out a single house and lot, you only deal with one contact person or tenant when your home is being rented.

What It’s Like to Rent Out an Apartment

If you are a seasoned landlord and you know the ins and outs of owning and renting out an apartment, it is recommended that you start an apartment rental business. To save on money and time, you can also consider purchasing an apartment for sale in Manila and other parts of the Philippines instead of constructing an apartment from scratch. Often, already established apartments have existing tenants, so you already have existing tenants when the ownership is transferred to you.

Owning an apartment also allows you to have a steady, secure income since you’ll be getting a considerable amount of money every month from your tenant. If your apartment has multiple units, you can even live in one of them so that you can be more accessible to your tenants and address their concerns in advance.

The Life of a Landlord

Being a landlord is not all about collecting money, though. You have other responsibilities to do to make your business thrive. These include screening your tenants, maintaining your property, and composing a contract for every tenant for your peace of mind and their security.

Renting out a property takes a lot of time and consideration. May this overview of being a house and lot or apartment landlord help you decide which property you should invest in and rent out to earn a steady passive income in the Philippines.