September 28, 2023
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Fortis Residences | March 17, 2023
Buying a condominium unit is a good long-term investment as it allows you to preserve and grow your wealth over time.
Many are enticed to acquire a condo with the idea of renting it out to a tenant. Making a profit, however, takes time and effort. You must fill up a lot of paperwork, draft rental contracts, and spend on furniture and fixtures before you put the property up for lease.
Like any major investment, it will take a while to receive the returns – but as they say, good things come to those who wait.
Here are 5 ways to maximize your investment in a condo unit by renting it out:
Choose a premium location.
A lessor will find that the location of the property dictates the rental rate they can charge. Market values appreciate the fastest for properties within a central business district (CBD) and surrounding areas. Fortis Residences, the newest development of DMCI Homes Exclusive, is just 1.8 kilometers (km) away from the Makati CBD and is 5.9 km away from the Bonifacio Global City in Taguig. This is a good indicator regarding the demand for condo units for rent, mainly coming from professionals who work in these financial hubs.
Condominiums surrounding the Makati CBD, which include Fortis’ location along Chino Roces Avenue, also enjoy a 9.2% average rental yield and only take about 11 years to achieve a return on investment, according to market studies. This is shorter than the average number of years for developments in other CBDs (up to 14.7 years) to generate investment returns.
Be flexible with its use.
Being the unit owner gives a lot of flexibility for the use of the property. DMCI Homes developments are known to be great for end-use, especially under its upscale segment because of bigger-than-usual space and upgraded finishes. This also makes it ideal for renting out, particularly to the discerning tenants. A wise investor will explore various opportunities in leasing the unit and find the terms which provide the highest returns.
Finding a long-term lessee provides a stable income stream for the unit owner for the duration of their agreement, which is a regular income inflow.
Furnish to perfection.
Landlords can charge a higher rental rate for furnished condo units – after all, many renters will find it more convenient to move into a home that they can immediately live in. It’s up to you what to include in the furnished unit – this may include beds, mattresses, wardrobe cabinets, a dining set, and the like.
It’s important to note that there are maintenance costs for these appliances as they may break due to wear and tear or due to misuse on the part of the tenant. Be ready to incur additional costs.
Use it to diversify income sources.
A condo unit for lease is a source of passive income for the owner. It’s also a way to diversify income sources from salaries and other investment instruments. Profit from rental fees is particularly useful to investors who financed the condo purchase through a loan as the collections may cover monthly amortizations in part or even in full. In the long run, it’s like the condo unit is paying for itself.
In some cases, there’s even a windfall beyond the amortization for the investor to reap. For example, the going rate for condo rentals surrounding Fortis averages P21,800 a month for studio units, P32,000/month for a one-bedroom, and P47,000/month for a two-bedroom unit as of June 2022. Fortis’ upscale finishes and premium city living experience add value and will command higher rental yields.
Find a reputable developer.
Beyond investing in the location of your condo unit, it’s also important to check if the developer is trustworthy and has a proven track record to attract strong demand for renters.
DMCI Homes is a trusted brand for decades and continues to uphold excellence, innovation, and integrity in every development project. The company is a Quadruple A contractor, the first in the country, and is committed to upholding high quality of its projects through its 102-inspection point standard from project construction, design, and turnover.
Fortis Residences, a new project by DMCI Homes Exclusive, is the company’s latest offering to investors looking to acquire a property in Makati City. Fortis is a promising development that is likely to fetch competitive rental yields given its location along Chino Roces Avenue, a portion of which is being redeveloped into a mixed-use commercial hub.
Underpinned by exceptional quality that DMCI Homes has long been known for, each DMCI Homes Exclusive property is designed to possess an inherent rarity, be it in location, master plan or development features.
To learn more about DMCI Homes Exclusive, call (632) 5324-8888. News and other updates are also posted on the company’s official website and its social media accounts on Facebook, Twitter, Instagram, and YouTube.
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