The model for renting a serviced apartment in Ho Chi Minh City is becoming a trend and choice for many investors with modest capital in the city. If the investors know the management and strategic direction, this promises to be a very profitable investment channel for them.
Although there are a lot of new real estate items coming into our country, the type of apartment rental still has some development because it suits the needs of the market is always scarce. At the same time, it offers both profit and economic value to both investors and tenants.
Apartment for rent – an attractive investment channel
As an investor with many years of experience in hunting apartments and houses to rent and lease, Mr.Tran Van Nam (owning apartment for rent in District 3, Ho Chi Minh city) said that this type of business are very well developed and profitability is also high, even triple the bank interest rate.
According to Mr. Nam, he usually searches for houses of 3 to 6 floors for long-term rent and then arranges the project into rooms with an area of 25 – 30 – 40 m2/room for rent.
“This is the type of mini office preferred by startups. I just need to divide into rooms and then remodel a little, if it is filled to 90 – 100% then I can earn a net profit of 20% per year” – Said mr.Nam.
Similarly, Mr. Nguyen (Ho Chi Minh City) also said, last year he rented an apartments for rent in Ho Chi Minh of the former owner for 10 million per month, the contract for 3 years. After that, renovate, purchase furniture, total about 150 million Vietnam Dong.
“After designing, renovating the rooms, I photographed and posted on the website offering rental apartment in Ho Chi Minh. Soon after, people came to ask for the price of about 3-5 million per month. In fact, every month I earn about 20-30 million” – Said mr.Nguyen.
Share more about the experience in this business model, Mr. Nguyen revealed, must first find out the need to rent the area. Areas with many universities or industrial parks will be the best option. In addition, only rented units with multiple rooms are closed and the landlord agrees to give full control over the repairs and sublease.
According to Mr. Nam’s experience, the management of renting customers, the cost of electricity and water in a strict way to avoid the unwanted arising financial is also very important.
Rental apartments and risks to note
According to real estate investment reporters, the construction of houses and apartment for rent in District 3 are a trend that many people choose in big cities, where many migrant workers are concentrated.
In fact, this type of business has met the demand of low-income people for apartments for rent in Ho Chi Minh, or startups. However, this type of business still has many risks.
For example, Mr. Tuan (owner of an apartment for rent in District 3, Ho Chi Minh city), an investor in this form said that last month two young men rented rooms, but then another one more. I do not know.anything until the police investigators called him up to work, then he knew that newcomers were a criminal, are wanted by the police.
Not only risk to investors, tenants can also get into trouble, lose money if the landlord is not good. For example, mr.Hoai said that after the Lunar New Year holiday, she wants to change the inn to facilitate work. After a few inquiries, she found a room as she wished for. However, if she wanted to move in, the landlord required to pay the rental room before 1 year, if not yet a year that she transferred to not get back the deposit.
Since she had no accommodation, she agreed to pay a year in advance, but she has been living for two months. The landlord makes it difficult in many ways, such as cutting water, cutting, adding money to car, etc forced her to move so the landlord will take all the deposit.
Mr.Le Hoan Chau, chairman of the Ho Chi Minh City Real Estate Association (HoREA), said that demand for apartments for rent in Saigon for low income people, immigrants in Ho Chi Minh City is very high. However, up to now there are not many products for these objects.
“For customers when renting out, be careful, consider the information carefully and ask the people around the house to rent. For investors, before renting the house must ask the client to produce identification papers and report to the local authorities to facilitate the management, avoid the risks later” – Said mr.Chau.
Ho Chi Minh city has approved the investment project for social housing – Le Thanh residential area in An Lac ward, Binh Tan District for Le Thanh Construction Trade Co., Ltd. However, the amount of rental supply here is still very limited compared to the needs of the people. And if people want to rent an apartment in Ho Chi Minh city, they still have a lot of things need to be done before getting a perfect apartment as they wish for.
Thang Tran -Mogi.vn
