A Makati condo is not necessarily going to be used as living space, though that is often the intent behind a purchase. Instead, it is possible for someone to treat the unit as an investment. There are instances when a contract allows a unit owner to let someone else rent the unit, similar to arrangements made for an apartment in Makati. However, this is not a particularly common activity, and a condo owner who wants to do this must keep certain things in mind before making the offer. There is no guaranteed way to profit off of this and some agreements may actually forbid an owner from doing this, but when viable, it is an interesting way to make use of the space.
The unit itself
For obvious reasons, buying a condo is the first step in this process. However, it is ill-advised to purchase the smallest or cheapest unit available. This can be severely limiting in terms of potential tenants, who can likely get a better deal renting an apartment. Select a condo unit that suits the target market. Singles will likely prefer a single bedroom unit, while a married couple with one or two children would be better off with a two-bedroom one. Larger groups or families would be best located in their own house, though some older buildings do have three-bedroom condo units. Also note that some terms in the contract with the owner of the building may prohibit renting the condo out.
Location, location, location
Where the Makati condo is will have a large bearing on whether or not the market would want the unit being rented out. One of the first considerations is the general location itself. People will want an area that is safe and secure to move into, rather than just any part of the city. A secondary consideration is where the tower is in relation to the market’s interest. A condo unit near a hospital would be ideal for a doctor or nurse, but may not be so appealing to a university student. Finally, the tower must also offer reasonable access to restaurants, laundry services, and public transportation.
Potential profits
There are, of course, some caveats to using a Makati condo in this manner. It can be difficult to break-even in this scenario, since the owner of the unit has to pay for both the condo and the fees associated with it. It is possible to convince a renter to pay the rent and the associated fees, but this is a rare arrangement. In essence, people who do this should not expect to make much of a profit. For many, the best they can hope for is someone reducing the financial burden the condo represents.
Buying a Makati condo and then renting it out is a possible way of using it, treating it more as an investment than living space. However, this is not always the most profitable way of using the unit. It can help reduce the financial burden of paying off the property, in many cases, but the real estate industry has made it difficult to make a profit in this manner.
