There’s no question that land is a very good investment. Generally speaking, land appreciates. This is why people invest in them.
If you’re reading this article, there’s a good chance that you’ve invested in land already. You can hold on to it, wait for it to appreciate, and sell it so you can make money on your investment.
Or, you can make money on it right now. You just have to make another investment.
ICYMI: Here’s how to turn that vacant lot into a money-making machine.
Investing in an Apartment Complex
It’s a rental property meaning people will pay rent so they can live in it. Simply put, this is residual income.
Let’s do a simple math. Let’s say that your apartment complex has 5 units and you rent them out for PHP 10,000 per month a unit. That’s PHP 50,000 income per month.
You get the idea.
Shelter is a basic human need. The reality is a lot of people don’t have the capability to buy their own house so they rent. This means that you have a ready market ready to rent.
You just have to make sure that you have a rent-worthy place.
Tips to Ensure a Rent-worthy Apartment Complex
Follow these tips and you’ll have full occupancy in no time:
- Build in a good location.
There’s a good chance that your land is in a good location. After all, you invested in it for that good reason. Know who you’re targeting as tenants. Are they students? The apartment complex should be near major schools. Are they young professionals? It should be near the business district.
As a general rule, it would help a lot if the apartment complex is near schools, malls, offices, churches, parks and the likes. Consider this if you’re looking to invest in land with the purpose of building an apartment complex.
- Ensure good design.
No one wants to live in a home that looks like a box. The same thing applies to rental properties. Tenants should feel proud living in your apartment complex. If they don’t feel this the first time they see your building, they will look elsewhere.
It’s not just the exterior. The interior design should be good as well. It has to be functional. It has to be beautiful.
Don’t make the mistake of assuming that potential renters are just looking for a place to sleep in. This is going to be their home. Of course they’ll consider the design.
- Invest in quality materials and workmanship.
Generally speaking, an apartment complex will go through more abuse than residential units. This is why you should invest in quality materials and workmanship. The last thing you’d want is to have a one-year old building that looks like it’s been around for 10 years.
- Reserve space for commercial establishments.
It may not seem like a big deal, but potential renters appreciate if there’s a mini-grocery, laundromat, restaurant and the likes right in the apartment complex. This way, they don’t have to go out. This is a good way to compensate for a not-so-ideal location if you’re far from these necessities.
You can have the building designed in such a way that the whole ground level is for commercial establishments.
- Give options.
Don’t just have one-bedroom units. Have a studio and two-bedroom units as well. The studio will work best for yuppies and students. The one-bedroom units are for newly-married couples while the two-bedroom ones are for small families.
- Don’t forget about the parking.
This is one of the first things that people will check. A lot of people drive their own car nowadays. Of course, they’ll look for a place to park.
There are a lot of other things to consider. These will be dependent on your location and budget. Contact us today so we can talk!