The problem with most rental properties in the Philippines especially for those who want to stay over 3 months etc. Is they generally don’t have the western mod cons. e.g. electric shower for hot water in the morning or even hot water from the taps for washing up. Infact a lot of properties don’t even get cleaned out from the last tenant that lived there.
So to get the best returns on your property there is a few options. But the main thing is to look at the tourist and student market entering the Philippines as they will have sustainable funding (as its already budgeted for) as well as paying a higher price for a few luxuries. To give you an idea of price differences between the local and tourist market we rent a 1 bedroom house in Minglanilla which is around 30mins from the City and in a fairly quiet location. Cost P3,000 per month. No electric shower, No furniture, No mod cons or air conditioning. A similar sized apartment around 10 minutes from here is P15,000 per month. It comes with furniture, cable TV, Internet and electric shower even comes with pots and pans. As you can see its a huge mark up in comparison. If you take a break down on the initial setup its not as expensive as it looks either to get things rolling it may cost around P40,000 to kit out the property. But within 3 months you have already recouped that cost and not only that the tenant is likely to stay there due to all its mod cons.
Number of bedrooms? – Depending on who is renting really depends on the ideal number of rooms. But 1-2 bedroom seems to offer the best returns due to being able to get more apartments within the same space. Not only that there is the fact that the majority of people travelling to the Philippines are either single or couples. Arriving for work, touring or meeting a partner for the first time. Not only can you offer an apartment for they’re trip but the option is there for wife’s/girlfriends in visa processing who are waiting to leave needing a secure location to live while still under the watchful eye of an expat. So having a tourist visit for a few weeks or a month looking for a wife could suddenly be 6 – 9 months rental when he leaves and his girlfriend stays at the property waiting for paperwork processing.
The next option would be to purely rent out on a per annum basis. Depending on what type of property you have and where it is will determine the price. If your looking to go for the high profits you need to make sure the property is kept to a high standard and looking at premium rental companies on-line would be the best option to get the best rental price. If your looking to just rent out your home when away then I would advise looking within the forums relating to the Philippines and the area your house is in and you will come across many people looking for properties at a good rate. You may not get the best price but many of these people are looking for long-term rentals and likely to look after your property as it is more of a home than a hotel.
Building a spare room – Did you know that you can “extend” your house which is a lot easier than building a new one? Planning permission can take up to around 9 months for a newly constructed property but if you “extended” the house with a small apartment you don’t. So buying a small property on a big lot could be a viable way to build a few apartments. As they will be extensions rather than new build properties. I haven’t heard of anyone having any problems with this type of system (yet) so this could be the way to build your apartments one by one if on a budget.