Lepanto Townhomes
income the past years, is suddenly unattractive? What do I do?

In our last column we noted the competencies required to be a good administrator of rented property.
Today’s property boom is spurring an oversupply of rented property. So, if you are buying property that
you will eventually rent out, it is sensible to do some research. Check out what are the most popular
streets and the kind of housing that tenants would prefer. Make sure there is a market for the property
you want to purchase.

Today, there are many ads in newspapers and the internet of properties for sale. Do due diligence and
visit the sites and know the area. You have to be on the lookout that the place you are acquiring is safe
and secure and the surroundings do not speak of urban blight because of the presence of informal
dwellers or troublesome neighbors that may reduce the value of the property.

BEST PROPERTY TO RENT
What would be the easiest property to rent out? An expert on property tells me that the best properties
that easily rent out are studios and one room condominium units. Typically, the person who rents a
property is a single professional person age, 25-35 years old with a busy lifestyle, who cherishes the
nearness to his work or school of a studio or apartment. However, s/he is not ready to commit to
buying a piece of property but desires the freedom, autonomy and independence on living alone.

The single person renting a studio is an ideal tenant because s/he presents less risk in terms of wear
and tear, running away with unpaid rent or renting out your property to other tenants.

LIVABLE AND ATTRACTIVE PLACE
The key criteria for deciding on what property to purchase are its “livable and attractive character”.  
When one chooses property, ask yourself if you would love to live in the property. Today, with the
rising cost of fuel, many of my neighbors in the South are thinking to stay in an apartment or studio
during the week and go back to their homes on weekends. A number of them have decided not to
renew contracts on a property of they own for rent so they can use it themselves and save on gas. If
you use this consideration, you are likely to come up with a wise decision.

Then, the other criterion is the scarcity of available units in the area. This may appear strange -- but
properties for rent are likely to be subject to the law of supply and demand. If supply is low, then the
property will have more tenants looking. If the supply is high as in the case of buildings coming up with
so many studios for rent, the prices are likely to go down, as the prospective tenant has many choices.

Should one purchase newly built property or pre-selling property or old property as second and third
owner? There are advantages and disadvantages with each option. Newly built property can be a
come on to a tenant since the unit or apartment is likely to be attractive because of its spic and span
quality, but these units may be more expensive compared to pre-selling property. Pre-selling property
may cost less but may make take a longer time before they become available and financially attractive.

A neighbor of mine tells me that his best purchases are studios or apartments that are “Don’t want its”.
Often the owner is eager to dispose of the property, in a hurry to sell because he is migrating overseas
or changing work assignments. The owner is likely to give a good discount to dispose of the property.
One seller actually left all her appliances and furniture giving everything for free if the seller agrees to
refund the money for the bank amortizations and takes on the mortgage. Make sure however that the
place is not run down and it is in a strategic location. Repairs may cost you a fortune, more than the
actual cost of the property. Finally: location, location, location. This is the final and most important
decision criterion that is sometimes overlooked. It will spell out the difference if you make or lose
money.

If you have a house in the suburbs, you may think that your prospective tenant may want peace and
quiet away from traffic and noise.

Often the tenant may be looking for property to rent near transportation lines or near malls, to make
buying groceries easy and simple. He wants walking distance for quick meals to fast food joints or a
church. Many of them may not have cars. Many call center agents who work in the evenings may
want a place 5-10 minutes away from their place of work. Most tenants may not be interested in
landscaped gardens—in fact may consider them a nuisance.

Finally, what to do if a property has no tenant for a long time. Check out the neighborhood. New
property developments may be coming up. The best solution is turn around and sell the property.
Then with the cash go scouting for a new property to buy.
Sold out
Office Address :
819 Antonio
Maceda St
  Sampaloc, Manila
  Philippines