Renting out luxury apartments could be a great business. You can rent out your own until you can sell it at a good price, or you could rent from someone and rent it out to maximize your cash flow.
To those who make a business out of their own apartments, it can be quite a big investment at first but you can be in total control, either rent it out or sell it anytime you want. To those who re-rent several apartments, it can be quite lucrative with a bit of experience and an ability to navigate cash flows.
Whichever way you choose to invest and make business, the Ho Chi Minh City market is wide open with opportunities since the demand is very high. It is also a competitive market and you should know the following
1. Identify your target tenants
You need to identify your target tenants because this is going to influence your initial investment in the apartment. The standards of an ex-pat can differ from that of a young Vietnamese family with kids. Their daily needs and aesthetic points of view could also be dissimilar. Moreover, once you identify the target tenants, the search will follow suit easily.
2. Identify your investment
A newly delivered apartment will cost less than an old one. The new ones are also furnished in a modern style that suits contemporary living. Invest in accordance with the rent you want to ask for from the target tenants because you would want to have a long-term contract with them. In order to get it rented out quickly, you might want to invest in the furniture and make it most presentable: clean and neat, tidy and aesthetic to the target tenants.
3. Manage and operate
Do you want to run the service and operation yourself or do you hire a professional? Apart from the standard management service of the building, you could consider offering an upgraded service to your tenants in order to justify the high rent and make them feel well cared for, such as a fixed schedule of maintenance, cleaning and laundry service, plant care while tenants are away, etc. for those in need.
4. Pick a location
Expats or high-level executives often choose to live in the center of the center. They would pick a place that suits their needs and serves their daily life with full utilities. This is why the River Thu Thiem is a top choice for them. Being at a golden location, the River Thu Thiem residents are the closest to every other central district thanks to the systematic planning and optimal infrastructure. The best part is, that they get to live in an ideal environment, close to every top-notch service and right in the center of all contemporary cultural and artistic activities, side by side with District 1.
5. Avoid risks from tenants
When you talk to the potential tenants, you can kindly check in about their previous apartments and what makes them leave. This gives you a bit of background and understanding of who you are going to deal with.
In the contract, you should put in the clear terms and conditions if they could do business and what type of business is allowed in your apartment. If they commit anything against the laws, it is solely their responsibility. You should also regulate the hygiene standards so they could keep care of the apartment as best they can. Before handing over the apartment, you both need to sign off a document clarifying the status of the space to avoid unnecessary arguments. If possible, you might want to check in with the building management or the neighbors to make sure nothing serious is overlooked.
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