Global Property Guide reported in 2Q2019 that the Philippines is on its 8th year of a house price boom. This year saw the highest uptake of preselling condominium units, reaching 54,000 units to surpass 2017’s 52,600 units.
Jones Lang LaSalle reports that local and foreign high net worth individuals drive the residential sales market.
It looks like the purchase of residential real estate is a trend that won’t see cessation any time soon.
Our brokers weigh in on the characteristics of a good tenant. If investing in real estate as a means to obtain passive income appeals to you, keep both eyes wide open to recoup your investment — not just the money, but also the time and energy that you pour into playing the real estate market.
1. Financially Stable
“I may have a great time talking with my tenant, but business is still business- if my tenant is not stable enough to pay the rent, then it’ll be a problem for me.”
said by HousingInteractive’s broker,
Sally de Villa.
Indeed, your rental property is still a business. It’s fine to have a great relationship with your tenant as long as he/she is paying the rent. Before signing over your property to your new lessor, make sure s/he can put their money where their mouth is.
2. Great Credibility
Before you decide on a tenant, assess first if he/she is currently paying a loan or — even worse — has a history of failed payments.
“This is another thing you have to assess as a landlord, their credibility. You don’t want someone renting your unit if you knew that they have bad credits to other companies,” Ms. de Villa states.
A potential tenant who has fallen in love with your property may release the silver tongue. No matter how charming the prospect may be, do your due diligence to make sure you minimize the risks involved.
3. No Criminal Background
“One of the cardinal wishes of a landlord is not having a criminal renting his house, no matter how rich that tenant is. It is very risky, to be honest.”, Ms. de Villa explains.
Dramatic Breaking Bad scenarios in affluent villages took front page news when mansions were surreptitiously turned into meth labs. Condominiums outside Metro Manila were hubs for human trafficking. Organized criminals aren’t unheard of to pursue rental properties in the city’s shiniest skyscrapers.
4. Honest
“Honesty is the best policy”, they say. Lessors will want to customize the space to fit their own individuality. Your stance on repainting, hanging of frames, or even renovation is an individual choice; however, it’s best to find a lessor who’ll come clean with their plans, and request for permission before the deed is done.
“Even in making requests, you have to be honest. There’s no such thing as a perfect household, that’s why owners should be asking you some requests. If they did, be honest,” adds HousingInteractive partner broker, Mafel Gubatan.
If your tenant will have delayed payment of rent because of other issues, try to give them at least 2-weeks as long as they are honest about it.
There won’t be issues if there’s honesty, even in rental contracts.
5. Responsible
You have to consider how responsible your tenant is, especially in paying the rent on time and avoiding any damage in your unit.
“Owners usually expect their tenants to take care of the unit as if it is their own, to be clean and responsible.”, as stated by HousingInteractive partner broker, Arlene Geron.
Your tenant may be charming, risk-averse, and financially viable, but if you see permanent damage to the property when you visit, it might be best to find another option.
6. Approachable
Of course even though that you have your own rules and regulations, that doesn’t mean that your tenant has no right to request something. As a landlord, it’s a requirement for you to ask your tenants if they have some requests.
“In order to have a great tenant, both of you should be communicating, not just through chats and phone calls, but in person as well,” says HousingInteractive’s partner broker, Mafel Gubatan.
“As a tenant, if your landlord asks you for additional requests about your rent and you’re shy enough to answer, then don’t complain after”, she added.
Both of you are cooperating for the use of the property. Communication and coordination are key to a good relationship.
7. Respectful
You are the landlord and you have the right to create your own rules and regulations to avoid any damages and issues in your property.
Choose a tenant who respects your rules — or at least inquires about them respectfully with an idea of understanding your position. “Really, you must have respect for your landlord’s rules because you’re only renting, the property is not even yours. If you want a great relationship with your landlord, then you should respect.” stated again by Ms. Mafel
8. Eager
Be on the lookout for a tenant eager to maintain the cleanliness and integrity of your unit. They’re hard to find and worth their weight in gold. They are aware that the property they’re renting isn’t theirs, and that they’re obliged to take good care of it.
“A good and responsible tenant is eager enough to take care of the leased premises and taking it as their own,” said Housing Interactive’s broker, Arlene Geron.
The key to playing the real estate market successfully is teamwork, cooperation, and coordination. We can help you find brokers who are professional and proactive. They’ll connect you with the right tenant.
For more information, contact us here:
0956 134 3180/ 0919 474 1067/ 8 809 7574 or you may email us at info@housinginteractive.com or you may visit our website at https://housinginteractive.com.ph/
6F LDM Building, 50 Polaris St., Bel-Air
Makati City, Metro Manila Philippines
