Who doesn’t like to earn money without exerting a lot of physical work? Sounds too good to be true, right? The truth is, this scenario is not mere fantasy. For condo owners, making money with their property and not lifting a finger is definitely possible. It’s called passive income.
A growing number of condo owners are turning their property into a lucrative source of extra income—and rightly so. The expanding population, thriving economy and booming tourism industry make it ideal to earn from your condominium unit. And if you do things right, extracting steady income from your condo property can allow you to retire early from work. Give these 5 passive income ideas for condo owners a try.
- Long-term rentals for students and workers
Long-term rental is one of the best passive income ideas for you to consider. It guarantees that you will have a steady stream of profit for the period of a tenant’s contract. Usually, long-term condo leases are valid for a minimum of six months. They are also subject to renewal as well as pre-termination. What adds to the value of a long-term lease is today’s vibrant rental market. In the Philippines, property portal Lamudi found that close to 70 percent of Filipinos prefer to rent than buy a home. Moreover, most of the renters are around the age of college-level students, fresh graduates, and young workers. While landlord-tenant disputes can arise, remember that knowledge and preparation are the key. It’s important that both parties agree on the terms of the lease before anything else, whether it has to do with maintenance, pets or price of rent. This can be the single most effective step to avoid disputes later on.
- Try short-term rental while waiting for your property to appreciate
A number of condo owners invest in real estate so they can eventually sell it. While this is a good investment move, you may need to wait for some time for your property’s value to appreciate. In this period, you may want to consider short-term rental until the market is favorable for you to sell your condo. Short-term rental usually covers a week up to three months. One of the primary advantages of this type of rent is the flexibility it gives to the landowner. You can choose exactly the weeks or months to make your condo available to tenants. This gives you more opportunity to use your own property because there is less time restriction as compared to a long-term lease. As for profit, short-term rent can make it easier for you to charge a slightly higher rate, depending on the time of the year (e.g., holidays and summer).
- Make your condo available for vacation rentals
With the popularity of social media and accommodation bookings online, local and foreign vacationers are looking into places they can call their home away from home. If you own a resort style condo, it’s a great property to open for vacation rentals. While vacation rental is often considered a subset of short-term rental, the former can be said to be in some ways different. For one, vacation rentals require more in terms of aesthetics and location. The demand for vacation rentals have surged in recent years because they offer the privacy, space and luxury of five-star hotels at a much lesser cost. The period of most vacation rentals range from a few days to weeks. In some cases, in can be longer than a month. As in all types of rentals, a well-written agreement is essential for your security and peace of mind as well as your guests’.
- Book it out for its amenities
What makes condo living a dream come true for many owners and renters is the amenities they get to enjoy. From swimming pools and fitness centers to open parks and clubhouses, condo communities offer a lot in terms of quality living. Even if you live in your condo, you can still earn passive income by capitalizing on your access to your condo property’s amenities. While a lot of renters are looking for a condo to reside in, some are drawn to condo properties only for the use of amenities and venue. A good example is the swimming pool. Some renters may want access only to your condo’s pool for an afternoon of family activity. Other renters may be looking for the perfect venue to hold a party, meeting, reunion or community projects. Your condo’s clubhouse or function room can be a charming events place for them. You can definitely make an arrangement for this type of renters without having to leave your condo unit.
- Rent out your parking space
Depending on your condo’s policy, you can earn a considerable amount by renting out your condo parking space. Given the increased car ownership and limited parking space in the metropolis, many drivers are looking for a place where they can safely and conveniently park their vehicles. We know how stressful it can be to endure traffic and hunt for parking space. You can make serious cash by opening your parking slot for rent. But remember that owning a condo unit doesn’t necessarily entitle you to have a free parking slot. Inquire in your condo’s administrator’s office to know about possible arrangements. If you need parking space for your vehicle at certain times of the week (let’s say during weekends), one possible setup is renting out your parking space only on weekdays. This seems to be quite popular in city centers where people need parking space during office hours.
So, when are you giving these 5 passive incomes ideas a try? As you have seen, owning a condo while being an entrepreneur is not only possible but also profitable. Creating a passive income through your condo property is advisable to keep your investment valuable and financially rewarding. It’s also a more secure way of earning and requires less effort than investing in the stock market.