Shopping around for rental properties takes careful study, time and effort but it can also be fun and productive if you know what, where and how to look for your next property investment.
There are different types of rental properties that you can consider. As a real estate investor, you need to determine what type of rental property you want to focus on.
There are generally 3 types of Rental Properties:
RESIDENTIAL
Residential Rental Properties are places that people can rent to reside in. These could be any of the ff.:
Single-unit homes may be a condominium unit, a flat, a house or any solo property that can be rented by one person or family.
Multi-unit homes are a group of properties in the same vicinity that can be rented by different people or families. These may be 2-door or more apartments, duplex, townhouse, row house or apartment buildings.
Bed space, Dormitories or Staff housing are single or multi-unit properties that are converted to provide housing for different individuals. These may include students, professionals or working people.
COMMERCIAL
Commercial Rental Properties are mainly used for business purposes. These may come in the form of:
Office units, Business centers or buildings whereby companies rent your place to conduct business in.
Stores Spaces, strip malls or mall buildings where merchants can have a storefront.
Warehouses or Storage units where companies can store their products, machineries and supplies.
Hotels, Motels, Leisure Resorts, Bed & Breakfast where people can rent rooms, function rooms and banquet halls. These are considered commercial because it is run as a commercial establishment.
Others
There are also other spaces that can be leased out such as Advertising Space, Mailboxes, Virtual Offices, Event Halls, Parking lots and many more.
MIXED USE OR COMMERCIAL-RESIDENTIAL
Some properties have both a residential and commercial component. There are prime properties that utilize the ground floor area which can be leased out to banks or storefronts while the upper floors can be used for residential rental.
There are so many type of rental properties that can be considered for your rental property portfolio. It is good to focus on a particular niche but also important to open you eyes and ears out for good investment opportunities.
Right now, I’m more focused on residential rental properties because that is the area I am most familiar with. Eventually, I might try venturing into commercial if there is opportunity and if I have the capabilities to act on it. We’ll see.
What about you? Which type of rental property would you like to have?
Jhoanna Gan So is the co-founder and President of Businessmaker Academy and HR Club Philippines. She is a Property Investor and Licensed Real Estate Broker (REB PRC # 0029553). She devotes most of her time to business education, real estate and her amazing family.