Do you have problems looking for renters for your unit on a long term basis, or at least renting it out at your desired price? There is actually a viable alternative.
Try daily rental
Instead of targeting the long term renters, try doing daily, weekly, or monthly rentals. The truth is, the limited purchasing power of the salaried Cebuano has placed a cap on the actual rental rates of long term rentals. There is, however, a growing demand for cheaper alternatives to expensive hotels because of the increasing tourist volume or those on short business trips. And these young couples or groups usually prefer bigger spaces in which they can cook and have lesser restrictions than hotels.
Based on our experience, rental periods for this market segment run from one day to a few weeks, or even a month or so.
Imagine a townhouse renting for P20,000 in the Lapu-Lapu area. If this was rented out for P2,000 a day, rentals equivalent to 10 days would already cover your original P20,000 monthly rental. The P2,000/day rate would not actually be farfetched, since this is significantly lower than the hotel rates yet with much bigger space and comes with other facilities, such as, a kitchen, comfortable dining space, and even several rooms. Moreover, a small group can already use the whole house (for a slightly higher rate). Renters may not get the five star service of the hotel, in this case, but then the significant drop in cost is well worth it for many of these budget vacationers.
Not all properties are suitable, though, for this kind of operations. Ideally, the property should be near resorts and other tourist destinations. It should be amply furnished. And most importantly, it should be closely managed, much more closely than you would a long term rental unit. Also, the marketing of this property should be done constantly and liaising with the renters should be done often.
You can still do this lucrative alternative, though, by signing up with a group already doing this type of business so that your property will be marketed properly, the furniture be secured, and the guests leave happy and content enough to recommend your place.
Contact FilAsia Realty if you are interested to know if your unit can form part of the pool which we are currently growing.
Invictus “Tuts” Paradela is the owner and Chief Executive Officer of FilAsia Realty, a realty firm committed to helping buyers get the most out of their residential and commercial deals and purchases. FilAsia Realty is now also offering Property Management services to help owners market their unit and provide options for those looking to rent. You may contact him through firstname.lastname@example.org.