Buying a condo to rent out.

[Snowy79]

7 hours ago, Mangoshake said:

Are there condos in Phills where short term rental is not acceptable by some law or is it always up to the owner of the unit?

approximately u have the unit now months or years? Do u have enough data to  calculate estimated rental returns for the first year? I just curious about the estimated  

A lot depends on your area and target audience. Big money is in Makati and BGC in Manila as foreigners and companies will pay top dollar for rentals but the apartments cost a fortune in the first place.

Buy in a cheap area and you may never rent it out or only get about 20,000 peso per month. I aim at about 2800 peso per day and get anything from 20 to 30 days of bookings per month. On top of that I pay the association dues, cable, electricity, caretaker and insurance. I can make upwards of 45,000 peso befors tax. 

Edited October 25, 2017 by Snowy79

[Mangoshake]

3 hours ago, Dave Hounddriver said:

You can be honest and tell us that you want to make a similar investment and you are just doing your homework and asking questions on this forum   That is not breaking any rules.

So far as I know there are no regulations about short term rentals not being acceptable by law, but I sense you are asking if there are rules about operating your apartment like a hotel, with overnight guests.

There are rules/taxes for renting out any kind of unit and whether you fall under the rules of a pension house or just an apartment rental will be up to some bureaucrat to decide, which they will do if you start making serious money.  In my opinion its best to fly under the radar.  I doubt that most condo owners report the rental income and check all the laws (which are seldom enforced anyway). Any investment in Philippines is a risk.  Best of luck with it.

Well in most Countries rentals by Airbb are perfectly allowed but perhaps in only some condominiums are not cooperating with this if the residents comitee is against it.

[Mangoshake]

3 hours ago, Snowy79 said:

A lot depends on your area and target audience. Big money is in Makati and BGC in Manila as foreigners and companies will pay top dollar for rentals but the apartments cost a fortune in the first place.

Buy in a cheap area and you may never rent it out or only get about 20,000 peso per month. I aim at about 2800 peso per day and get anything from 20 to 30 days of bookings per month. On top of that I pay the association dues, cable, electricity, caretaker and insurance. I can make upwards of 45,000 peso befors tax. 

Yes well the Makati and or the fort area are way to expensive for me a 4 M pesos unit would be the max that i am willing to spend on it. Yes you do make excellent returns with the place.

[sonjack2847]

1 hour ago, Mangoshake said:

Yes well the Makati and or the fort area are way to expensive for me a 4 M pesos unit would be the max that i am willing to spend on it. Yes you do make excellent returns with the place.

I would say that you can not do make excellent returns on a place as it can go awry very quickly with the wrong tenants.My ex MIL had rented out a house in Bristol UK.It was in a very desirable area and was close to all amenities although quite secluded.After 11 months the tenant stopped paying the rent and somebody went around to find out what was wrong.The house had been turned into a cannabis factory and the state it was left cost more to put right than the rent for the whole 11 months.Some people are lucky and get good tenants but others get the dregs of society.I wish anybody luck who wants to invest in their future but would like to point out some bad parts to rental income.

[Jack Peterson]

6 minutes ago, sonjack2847 said:

I wish anybody luck who wants to invest in their future but would like to point out some bad parts to rental income.

 I know we are talking primarily about the Philippines here But I am having (It seems universally) a big problem with Sub-letting. A poster and I am not sure who said about Joiners to the permitted number of persons in the Apartment, these should be additional on rents, then in another Topic the tenant leaves but others stay then you get a problem or as I am having the tenant sub-let the whole thing to another person and was never caught so no rent. it is just no easy unless you are either here and on top of things all the time. or trust an Agent and this reduces your income.  For my trust in people, I feel I am losing a lot of rent along the way, so to anyone thinking of doing Rentals as we say about buying "Buyers beware" In this instance "Renters beware" In the Philippines it is normal for 8 to Share a 4 person place if they think they can get away with it. Think on  I say

 JMHO

[Dave Hounddriver]

24 minutes ago, Jack Peterson said:

" In the Philippines it is normal for 8 to Share a 4 person place if they think they can get away with it.

Agreed.  I believe you have to rent to wealthy people who can afford high rents.  They have greater expectations but they respect your property more.  If you rent to someone who is looking for a cheap place then what happens when he brings over his cheap gf-for-the-night.  Broken toilet seats, broken taps, broken . .  I could go on but suffice it to say that people who have never had nice things do not know how to treat them.  So if I was to rent out a place I would be looking for the high end people or I would do it the filipino way:  Everything in the house is solid concrete and you bring your own fixtures, appliances, floor coverings and what have you.  Plus you replace what you break.  The landlord does not come over to fix a leaky faucet in Philippines.  (Well they seldom do).

[Mangoshake]

Yes nothing is very easy and most propery owners make returns 3-5% max after their complete calculations but some make steadily 7-11% returns while some basicly make no real returns whatsoever.

you need to be hardworking skilled motivated organized and buy units for bargain prices or u be screwed from the start. Then still not easy as probably more condo owners will give short term renting a chance so that means less bookings a month.

[sonjack2847]

19 hours ago, Jack Peterson said:

 I know we are talking primarily about the Philippines here But I am having (It seems universally) a big problem with Sub-letting. A poster and I am not sure who said about Joiners to the permitted number of persons in the Apartment, these should be additional on rents, then in another Topic the tenant leaves but others stay then you get a problem or as I am having the tenant sub-let the whole thing to another person and was never caught so no rent. it is just no easy unless you are either here and on top of things all the time. or trust an Agent and this reduces your income.  For my trust in people, I feel I am losing a lot of rent along the way, so to anyone thinking of doing Rentals as we say about buying "Buyers beware" In this instance "Renters beware" In the Philippines it is normal for 8 to Share a 4 person place if they think they can get away with it. Think on  I say

 JMHO

I had a joiner on my last rental and in the UK they don`t give a toss even the management company.

[Jack Peterson]

1 minute ago, sonjack2847 said:

in the UK they don`t give a toss even the management company.

Same same, here mate, In house Management is the only way to run it , like a Hotel, check them in and check them out, Damage and mess costs out of Deposits

JMHO