For us working here in Qatar, we probably have an end goal in mind. For some of us, we are saving money to send our children to college. Then there are some who want to buy a house. And then there are others who are thinking of setting up a business or any type of passive income.
Some of our kababayans have put up apartments in their hometowns. If you are planning one, try to get as much information as possible about the expenses and challenges that you will encounter.
Disclaimer: The information posted here is based on the personal experiences that the OFW shared on the video. Please let this post serve as a guide only. If you have specific questions, you may ask the OFW by commenting on their video on their accounts.
Prepare for These Problems
Putting up an apartment seems like a profitable business. With living space always in demand, you will always have potential tenants asking about its availability.
In this YouTube video from Mellvin Vlog, we will learn about the common problems that apartment owners face. He also offers some solutions, so you will know what to do in case any of these problems happen to you.
Renters Who Leave With an Unpaid Bill
Some renters leave their units without settling any obligations. For cases like this, asking for a security deposit will protect the owner. It’s customary to ask for 1 month advance and 2 months deposit to any renters. If they have plans to run away, the landlord will use the advance payment to cover any unpaid bills.
There are also some landlords who ask for IDs, resumes, and even police clearances from any new renters. This identification will help, especially if the renter has plans to use the unit illegally. The vlogger suggests having a lease agreement that clearly lists all conditions for the renter. It could also contain the validity of the agreement so that all parties will know how long they can stay.
Unexpected emergency Expenses
Emergencies come when you least expect them. There may be calamities or accidents that damage the apartment, so you need to be ready for them. The vlogger recommends that landlords get property insurance for the apartment.
The premium will vary depending on the value of the lot. And you can also compare the rates of various insurance companies. The said insurance will save you in case of emergencies.
As the apartment building gets older, the landlord should prepare for repair costs. After all, the daily wear and tear of each unit could end up looking worn and dull.
To prepare for this expense, the vlogger recommends that the landlord set aside a portion of the rent for maintenance fees. The landlord could pass on this cost to the renter or just deduct it from the monthly rent.
The good thing about setting aside a regular maintenance fee is that it can turn into savings if there are no repairs needed for a certain period. Another practice to consider is maintaining the apartment regularly. In this way, the building is always in good condition, which may lessen the need for repairs.
Whether we like it or not, there are renters who do not value the apartment they occupy. Even if they are living in a well-maintained apartment, they will still end up ruining the unit because they don’t clean up properly.
The vlogger also shares an experience where the renters added more occupants to the unit and ended up ruining it. Because the landowner was not always around to monitor, the renters were able to get away with the unruly behavior.
To solve this problem, the vlogger recommends specifying the allowed number of occupants in the lease agreement. The contract could also include the conditions that the renter should meet, like ensuring that the property is always clean, or they could get evicted. The landlord could also conduct regular visits to ensure that the renter is not destroying the property.
Our vlogger also shares that the landlord will also shoulder the problems that the renter creates. As such, the landlord will be responsible if the complaint against the renters reaches the authorities.
Renters have various personalities, which could also cause trouble for the landlord. For instance, the renter creates a scene when drunk or annoyed. The initial solution would be to have the contact numbers of the barangay chairman or homeowners’ association so they can help in case the renter is causing a scene.
But to prevent that from happening, it is best to talk to the renter at the start of the contract. The landlord should also specify that brawls and fighting are not allowed. Doing so could lead to the contract being terminated. In cases like this, it is best to be diplomatic when talking to the renter.
Security and Safety
As the apartment complex expands, the landlord should expect that problems with security and safety will arise. As a solution, the landlord could put up a gate, set up a CCTV system, or add adequate lighting in secluded areas. Doing so will also prevent burglars from entering the apartment.
The landlord could also be proactive and see if there is a need to repair or fix any accident-prone areas in the compound. For example, they can add traction pads to a slippery tile. It will prevent anyone from slipping when they walk.
The security camera can also help ward off burglars. It can also assist in identifying who is stealing or entering the compound illegally. And if any of the renters are caught disobeying the regulations, their action could lead to their eviction.
Water and Electricity Shortages
The lack of water and electricity is convenient for everyone, and this is a serious problem for any landlord. To prevent this from happening, the landlord should study the location first before buying the property. They can ask the neighbors about the conditions in the area. And they can also check if the place is prone to flooding or any similar issues. Only when the landlord is satisfied with the location should they purchase the property.
There are also some landlords who choose to buy an already established apartment. In this case, it would be best to check the condition of the apartment as well as if the area is prone to flooding or not.
The landlord should be able to anticipate the problems that their renters will have so they can prepare for it.
In the end, the vlogger recommends that proper planning, execution, and a sound contract will save the landlord from most problems in running an apartment.
You can watch the full video here: