If you’ve decided to adopt a rent-to-rent model as part of your co-living investment strategy, this would involve searching for a suitable condo unit to rent so you can lease the individual rooms out to individual tenants. To maximise your chances of securing tenants quickly and to be able to lock in a higher asking rental price, it is crucial that you choose the right type of unit that will appeal to your tenants.
Here are some tips on how to choose an attractive condo unit under the co-living rent-to-rent model.
1. Pick a unit that is in close proximity to an MRT station
Our recommendation is to choose a unit that’s fairly close to an MRT station. For us, this means that it should be within a walking distance of at most 5 minutes from the MRT station. Tenants value convenience, so having an MRT station that’s close by means they can have easy access to transport and are able to go to work easily. A unit that’s situated close to any of the stations along the East-West line would also be ideal as the Central Business District (Raffles Place MRT Station) and town area (City Hall MRT Station) which are key central locations are situated along this line.
2. Choose a unit that’s clean, bright and airy
First impressions count. The moment your prospective tenant steps into the unit for a viewing, they will most likely know whether they will want to rent a room there. For us, we would suggest avoiding older units that are rundown or in original condition as these may be prone to termites or pest infestation. A more modern condo that is clean and has been well-maintained would be more ideal. One that has lots of windows would be airy and make the space look brighter and more spacious, making it more appealing to tenants.
3. Opt for a condo with full facilities
There are many condos spread out all across Singapore. Condos come with facilities such as a swimming pool, gym and BBQ area, as well as security and ample parking. Choose a condo development that comes with full facilities over a walk-up apartment. With better amenities and facilities, you’d be able to secure a tenant more easily. On the other hand, a walk-up apartment usually has no lift, making furniture delivery a problem and this may also turn off some tenants who may not want to walk up flights of stairs everyday.
4. Choose condos near business parks or educational institutions
Consider the target market for your co-living unit. A typical tenant profile would be expats or working professionals who have come to Singapore to work. Most of these people who have relocated to Singapore will usually be working in MNCs with headquarters or business operations in business parks such as Changi Business Park or the International Business Park, amongst others. They would usually want to stay somewhere close to their workplace. So when you hunt for your condo unit, bear that it mind. Another target audience is international students who have come to Singapore to study. So look out for condos near universities or international schools.