In an effort to maximize your finances, you are forced to consider renting out your property to strangers. While the idea of extra income is hard to turn down, there are bound to be disadvantages when you let other people take the reins of your property for a few days. Just like in the real estate in the Philippines and other tourist-packed countries, many families are considering to rent out their second properties that are usually unoccupied. Here are some lowdown on what to expect from this venture:
Upside: More money!
Diversifying your real estate investments is one thing to earn you money in the future. Renting them out in the meantime would mean a big bonus on your finances. The monthly or weekly rental you get can be used for upgrading the place or for your basic needs.
Downside: Nobodys paying
A lot of travelers choose to rent a property rather than stay in hotels because they are either low on finances or want a local flavor in surroundings. If it is the former, you should be wary of the possibility that they will not pay the amount of rent you initially agreed upon. Since money is tight on the first place, it would not be surprising if they also miss out on paying what is due, but still use up your resources, like water and electricity.
Upside: Added experience on micromanaging a property
When you desire to be a real estate mogul in the future, you must start small. Micromanaging one or two rooms will help you improve your interaction and negotiation skills with renters, know what their basic needs and wants are, and build your name in the real estate market. From that, you can expand your rental property and diversify when you gain enough capital.
Downside: The hassle of micromanaging
Micromanaging is hard for those who are just starting in the rental business. You must upgrade your property to suit the market youre trying to serve. This also includes knowing what they want and dont want ahead. Money will trickle down fast when you try to get everything in place before the holiday season.
Upside: Peak season
Rental businesses typically celebrate during peak seasons since the empty rooms will be filled to the brim by locals and foreigners alike. They also have the choice of increasing their prices, and nobody would complain about it because it is peak season.
Downside: Non- peak season
Non- peak seasons usually mean slow business. It wont be necessary to hire a full staff, when only one visitor is renting. The maintenance of the rental properties wont be focused on, because there isnt money for it. Obscure properties during non- peak usually shut down completely just to save on maintenance.
If you wish to enter the renting business, consider buying the best condominium for sale at Zipmatch. Tourists are likely to grab a condominium rental deal, than a house and lot offer, which is costly and too big to be maintained and enjoyed.