Apartment/ Real Estate Rental Tips, Please?

[joris]

hi mga sis..ask lang po ako opinions sa mga expert na dito about real estate rentals, kung halimbawa may available na money na gusto ko iinvest sa rental business, am thinking of either magpatayo ng paupahan sa  na-inherit kong lot sa province but inaayos pa lang adjudication papers nito since kamamatay lang ng mother ko (my father also passed away na) or kukuha ng low cost housing like row house sa city in which doon din kami nakakuha ng property ng h2b ko..iniisip ko din kasi kung ipapatayo pa lang doon sa inherited lot di ko alam kung kasya ang money na yon for the materials while kung purchase ng low-cost house ready for occupancy na agad and kahit sabihing i-loan ang pagkukuha non meron naman agad mag-ri-rent so more or less mababawi din agad ang monthly amort sa loan.ika-cash ko nalang sana yong equity or bayaran some portion of the amount na pwede i-loan to lessen my monthly amort if ever.kung yong sa province ang ipapatayo ang magiging prospect ko ay mga students and some gov't employees since malapit din sa munisipyo and school while kung yong ina-eye kong row house sa city ay either family ang mag-rirent or employees working in those nearby companies sa area na yon..yong sa province ang trusted caretaker ang pagbabantayin ko if magpapaupa..ano po kaya mas okey? ...confused lang kasi am presently based overseas and have no plans na magtagal pa dito so need ko na may mainvest before ako mag-exit dito...i hope anyone can give advise or some other insights for this  ..thank you sisses!

[shopwisegirl]

mga sis, nasabi na nila lahat (nice thread!).. isa lang dagdag ko.. sa contract of lease, wag maluwag yung terms nyo ha.. kahit friends or relatives pa yan.. you'll never know what will happen in the future.. take it from my experience..

[shenggay]

Sis, advice lang ha, if your mom just died, don't forget to file a notice of death with thr BIR. The deadline for that is 2 months from the time of death. Filing of estate tax return is within 6 months from date of death. I guess sa dad mo, may penalties na talaga if matagal na ciang deceased.

I know you might still be on the mourning stage pero, the government wont take that into consideration.

[joris]

oo sis inaayos pa lang [textspeak!] adjudication papers..laki nga ng mga tax eh..so since matagal pa yata proseso ng pagtransfer undecided pa ako na patayuan [textspeak!] vacant lot para paupahan kasi baka magkaproblema sa pagkuha ng building permit..eh matitengga yong lupa whereas kung kuha na ako ng ready for occupancy na unit sa city pwede nang paupahan agad para magkaroon na ng income habang inaayos [textspeak!] transfer ng properties..

[mameejhy]

^Sis, rather than getting a brandnew rowhouse, it's cheaper to buy a foreclosed property from banks basta clean title ha? Most of the time 20-30%downpayment then the balance is payable for as long as 25yrs yata but I advise against that hehe too much paying period.

This is a helpful site: http://www.foreclosurephilippines.com/

[isbuko]

HELP sisses, next month try ko for rent yung condo ko sa Paranaque. What are the things I need to know? Do you think it is wise to have the unit for lease or to sell na lang? It's a 2 bedroom 48sqm condo unit with maids room. Gusto ko sana pwede daily, weekly and monthly. Any inputs??TIA

[shenggay]

^Sis, rather than getting a brandnew rowhouse, it's cheaper to buy a foreclosed property from banks basta clean title ha? Most of the time 20-30%downpayment then the balance is payable for as long as 25yrs yata but I advise against that hehe too much paying period.

This is a helpful site: http://www.foreclosurephilippines.com/

Hmmm... will consider this myself. thanks sis!

[chefron]

to add to that:

you HAVE to MAKE REPAIRS on foreclosed properties, so included that in your would be expenses.

[eds123]

mga sis. help! question lang po. Meron kasi kami 3-door apartment dito sa bulacan. pero maliit lang. 2500 per month lang ang rent. Need pa ba ng business permit dun? Salamat nang marami!

[miksha]

Alin kaya ang better, get a professional property manager/management company or relative/friend na nagsisideline? Ano kaya ang pros and cons? As of now kase relative namin ang property manager namin. Reasons are: kakilala, kung may kailangan text lang, dagdag sa income niya so parang tulong na din namin. Kaso lang iniisip ko na din kumuha nang professional property manager in the hopes na:
1. zero vacancy sa unit. as of now kase bakante ang unit medyo matagal na and though me and property manager are both advertising wala pang tenant. I am thinking na kapag sa professional baka better chances (any truth in this) baka mas aggressive sila or may ibang tactic na i don't know about. I don't like kase na vacant ang unit because that means walang pumapasok na income
2. Better managed ang unit. Like matutupad niya ang mga tenant and unit checkup&maintenance na gusto ko. Sa relative kase namin pumapalya kase syempre may ibang work siya.

Sa mga may experience na is it better to get a professional property manager/management?

[miksha]

eto lang ang masasabi ko - after 50yrs yata eh i-dedemolish na ang condo so bye bye investment ka na rin...

Mga sis, please correct me if I'm wrong.

Thanks

150years ang life nang condo building. If ever it needs to be demolished maghahatihati lahat nang condo owners  kung magkano ang presyo nung buong building and land. kase lahat kayo co-owners so lahat kayo may percentage. so hindi naman bye bye totally may makukuha ka pa din naman.

[orangepix]

For condos.. or any other structure... The lifespan of a building is 50 years. The architects, engineers and contractors are liable up to 15 years upon turnover of construction, so after 15 years the building will have greatly devaluated.

This might also help: http://pinoydreamhousetoday.com/6-things-to-consider-before-buying-a-residential-condominium-unit/

From the article:

"Condominiums have a life span of 50 years

Although, the law does not explicitly say that condominiums have a life span of 50 years, it definitely implies so. Section 8c of The Condominium Act says:

That project has been in existence in excess of 50 years; that it is obsolete and uneconomical, and that condominium owners holding in aggregate more than 50 percent interest in the common areas are opposed to repair or restoration or remodeling or modernizing of the project…

In such case, the owners can vote to have the building demolished which presents them two options:

Sell the land and the scrap from the demolished building, deduct the cost of demolition and divide the net proceeds among the owners, or
Strike a deal with the original developer or another developer to build a new condominium on their land. But until such time that the new project is completed, the owners will have to live in a temporary home which may take 2 to 4 years."

[miksha]

how do you do background checking for tenants?

[orangepix]

^my cousin who leases out apartments require new tenants to secure a barangay clearance from their previous address. this is to in a way ensure that they didn't have an issue with their previous landlord (if they were also renting), since tenant-landlord issues are usually resolved at barangay level. you could also ask for employment info. 

[clermont]

I bought a property via PAG-IBIG and it's currently under construction. Dapat 4 na 1BR apartment pero hindi natapos ng may-ari dahil naubusan ng funds. Nuong kinuha ko iyon, 3 na ang may umuupa. Of course, kinailangan na umalis ang mga umuupa para marenovate.

We are renovating the two units so we can live there. I plan to continue renting out the remaining two units. I don't think the original owner register it since he has no business permit. 

So questions sa inyo mga sisses esp to @shenggay & @aquacharly.

1. So I know I need to start in DTI to register the business name. Then go to BIR for the tax & fees? Then secure a business permit in City Hall? Tama po ba?
2. How do you determine how much should be the rental fee? The 1st unit is located on the first floor with one bedroom. The 2nd unit is on the second floor, 2BR with veranda. The units share a spacious garage & gate.

[chefron]

question: if you will not register the units for rentals, how do we apply ng metr sa meralco? hindi ba nila icoconsider yun as commercial na?

[miksha]

Ano ang pwede mo na panghawakan na security na hindi ka tatakbuhan nang renter mo if wala sila post-dated check? gusto ko kase post-dated check for security reasons for rental for the condo pero madami nakikiusap na wala daw sila check kung pwede bayaran na lang nila monthly deretso deposit sa account ko yung monthly rental.

[chefron]

hehe kahit naman may tseke kung walang pondo, wala ding silbi hehe yun nga lang pwede mong patalbugin at madedemanda mo sya.

usually mga lessor ask for specific number of months as deposit.

[miksha]

hehe kahit naman may tseke kung walang pondo, wala ding silbi hehe yun nga lang pwede mong patalbugin at madedemanda mo sya.

usually mga lessor ask for specific number of months as deposit.

well yes yun ang purpose kaya may post-dated check. pero may mga probable renters kase na walang checks (i think hindi uso sa pinas ang may checks unless you really have a need for one) so ask nila na deposit na lang monthly. iniisip ko naman e paano kung hindi sila nagdeposit tapos umeskapo na paano ko na hahabulin ?also, who shoulders the association dues sa condo, the tenant or the lessor? para kase sa akin ang tenant ang magshoulder nang assoc dues kase siya ang nakikinabang nang lahat nang amenities doon (pool, gym, building maintenance, garbage collection, security, etc...)  so kapag may tenant shoulder niya kapag walang tenant syempre yung may-ari magshoulder.

[shenggay]

well yes yun ang purpose kaya may post-dated check. pero may mga probable renters kase na walang checks (i think hindi uso sa pinas ang may checks unless you really have a need for one) so ask nila na deposit na lang monthly. iniisip ko naman e paano kung hindi sila nagdeposit tapos umeskapo na paano ko na hahabulin ?also, who shoulders the association dues sa condo, the tenant or the lessor? para kase sa akin ang tenant ang magshoulder nang assoc dues kase siya ang nakikinabang nang lahat nang amenities doon (pool, gym, building maintenance, garbage collection, security, etc...)  so kapag may tenant shoulder niya kapag walang tenant syempre yung may-ari magshoulder.

I think sis, the best way to handle yung mga walang post dated checks is to have at least one month deposit na refundable - yung ibabalik mo na lang at the end of the contract, instead of them using it kapag paalis na sila.

Regarding naman sa association dues, depende sa usapan nyo. Usually, it's the tenant that shoulders the dues pero, you should indicate that in the contract of lease, para walang misunderstanding.