Start Earning from an Apartment Rental Business
1. Capital
The lack of capital should not be a hindrance from planning this business. Capital is necessary to purchase the land and the building from the ground up. It is crucial when setting up rental units but there are funding sources if you know where to look. Savings, a loan from friends or a bank are just some of the fund sources you might want to look into. In case you have decided to get the funding from friends or relatives, make sure to put everything in black and white to prevent any problems later on.
On one hand, banks can be another fund source for start ups. Just all the fine prints. One drawback from a bank-financed loan are the required documents which may take long to complete. Credit rating why not find out more is also another factor that would help determine the approval process of the bank.
2. Property
An adequate piece of land accessible to transport would be a great plus. Choose one near schools, establishments and points of interest. The property will cost more of course but keep in mind that rent demands are higher for such locations. Rent prices are also driven by the kind of neighborhood so choose your land properly. Make sure to purchase the land from the legitimate owner. Check with the land registry office to make sure that the property is legit.
Secondly, take note of other details in the area. Make sure your land is not on a major fault line. Bodies of water may not be learn the facts here now good as it can cause flooding in your area.
3. Design
The kind of rent out space In building your rental apartment building, you have as many choices when it comes to design. Whether it will be a single or multi-story building is largely determined by the amount of capital and the size of the property on which it is to be built. If land is still to be bought, always conduct diligent search to make sure that the property has a clean title.
4. Permitting
Once capital is available and you have the property on which the building will be built, the actual construction is where the real work begins. Make sure that all necessary government permits are obtained from respective government agencies . Building permits, clearances and other required documents should be on hand to avoid any inconveniences later on.
5. Business Registration
Once the building is up, register the business either at the Department of Trade and Industry (DTI) if it is a sole proprietorship, or at the Securities and Exchange Commission (SEC) if you are planning to put up a corporation. The websites of these agencies provide clear guidelines on how to go about with the registration. Complete documentary requirements must be submitted to the respective agencies to ensure approval.
6. Get insurance for the property
Insurance for the property is hedge for any eventualities, (e.g. fire) that could present great damage to your rental business property. Getting an insurance can be added expense, but the costs will be be recouped and with you having that peace of mind that your investment is secure. Insuring the property will save you a bigger headache in the future. Make sure to chose an established insurer in the area with an impeccable and solid track record.