Quite a number of Condo Owners and Investors are based abroad. They have invested in Condo Properties in order to start their Rental Business and build up their Rental Portfolio.
Renting out a condo unit needs attention and thorough work. Though it may be possible for a unit owner to go thru the process of Condo Rental himself, being abroad may deem difficult as the process need physical presence to happen. It will be too expensice for the unit owner to fly in just to assist a client view their unit or to process tenant’s Move in and Move Out
Here are 5 steps to Rent Out a Condo Unit Even While Abroad:
- Find a trusted Leasing Agent
Leasing agents work with property owners to find good tenants for their properties. Finding a trusted Leasing Agent is the most crucial thing for a unit owner to do and when done right, can give the biggest blessing to them. It is best to seek the help of your Real Estate Broker who hopefully is also a Leasing Agent, as you already know him/her and are able to work properly together during reservation, turn over and move in of your condo unit. The Leasing Agent is already familiar with your unit and the project where your unit is located. Leasing agent is already familiar with the conditions in the Condo Property including houserules of the Condo Association and others.
2. Provide all crucial information of the unit
Crucial Information about the condo unit and condo project will make the Leasing Agent’s job more efficient. The unit owner must be able to give the accurate information needed which includes the Size of unit, Orientation, Floor Level, Monthly Rental Rates, Inventory of Items, Preferences (no dogs, no kids, etc) . It is best that the Leasing Agent get to see the actual situation of the unit or at the very least, be able to see actual photos of the unit. This way, the Leasing agent can market the unit more effectively. A Unit Owner – Leasing Agent Agreement may also be signed depending on the exclusivity, scope of work and commission agreed on.
3. Agree on the provisions of Contract of Lease
A draft Contract of Lease must be prepared by the Leasing agent and to be reviewed by the unit owner. Unit owner may agree, add and remove provisions and stipulations of the contract according to his own liking. The Leasing agent and unit owner must discuss thoroughly each provision until they come up with the best contract protecting the rights of the owner as well as the tenants. Unit owner may also ask the help of his/her Lawyers to check the contract and give recommendation. The most important information to be part of the contract would be
Names and Address of Tenants
Term of Tenancy
Monthly Rates, Advances and Deposits Required
Limit on Occupancy ( may indicate if Pets are not allowed)
Repairs and Maintenance
Other Restrictions ( no sub-leasing, etc)
4. Assign a trusted locally based person with SPA
Special power of attorney is a written authorization that grants a person the authority to act on behalf of the principal under specified circumstances. The person given the SPA may be a family member, a trusted friend or may even be the Leasing Agent himself in the absence of others. He/she will be holding the key to your unit and must be available for Unit Viewing and contract signing.
The authorization will allow the person to sign all documents on your behalf. These are a few documents that need Signing during Condo Rental.
Contract of Rent
Move In/ Move Out Clearances
Work Permits for installations like aircon, hot and cold shower, etc
Tenant Information forms
This person may also be the one to collect the payments of the Tenants on your behalf. Best to require Post Dated Checks named after Unit Owner and make agreement to have the checks deposited in the account once it is due. This transaction must be confirmed monthly as Deposit Slips are emailed to the unit owner and must be confirmed once payment is credited in the bank.
5. Prepare the Unit for Rental
Your condo unit must be made available for Rental as soon as you enroll or enlist it with your Leasing Agent. The unit must already be vacant as Tenants may move in anytime after viewing and discussions.
Owner may rent out a condo either bare or furnished. The overall situation of the unit will have the price and the marketability dependent on it. Furnished units will give higher yield of income yet a bare unit may be less difficult to maintain.
Unit owner and Leasing Agent must be able to prepare a detailed list of items inside the unit. This list must be given to the Tenant for them to check and confirm before they move it. The signed detailed list will be used by Leasing Agent when processing Move Out Documents of the Tenant. Security Deposits are used to pay for damaged furniture and fixtures in the condo unit.
Leasing Agents should be able to market the condo unit thru Real Estate Leasing Sites also within his circle of colleagues. He will assist in all unit viewings – some units are rented out immediately upon first client to view while others take about 5-7 viewing times with different possible tenants.
It is also the responsibility of unit owner to make sure that Association Dues, Fire Insurance, Real Property Taxes are updated to ensure smooth move in and move out of tenants.
Once unit is Rented Out and Documents processed, the relationship of Unit Owner and Leasing Agent must not end instead a constant communication must still happen. I would recommend at least a quarterly correspondence of the Leasing Agent and Unit Owner once the unit is already Rented Out for updates and to discuss any issues and concerns arising from the Rent. On a personal note, I visit my Rental clients every Christmas to give a simple token and check on their concerns. Also, I am 24 hours ready to receive any tenant request and concerns.
It is not an easy job and having a persistent, thorough, trusted and personally I say, prayerful Leasing Agent will give a Unit Owner a highly excellent service in Renting out his unit while he is abroad.
For those who are looking for a Leasing Agent, you might just find Condo Coach Ph the best for the job!
Here is just one review of a happy Rental Client.
Thank you and looking forward to leasing out your unit!
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