How Much Does it Cost to Rent an Apartment in the Philippines?

Whether you’re a young professional looking for a place to live in near your workplace or a newly married couple still saving up for your first home, renting is a viable option that offers flexibility and convenience. But is it a smart financial choice?

Let’s talk about how much to rent an apartment in the Philippines, as well as the factors that affect rental prices.

Real Estate in the Philippines

While many Filipinos lived in a lot or house they owned, about 10.8% rented a house or room. The number of renters, however, is higher in the National Capital Region where 32.6% of households were renters. This may be attributed to the high cost of homeownership, a need for flexibility to match their lifestyle, or simply a preference.

Nevertheless, the high demand for rental properties has resulted in a variety of rental options for Filipinos. There are a variety of properties that can be rented, such as:

·         Apartment units

·         Condominium units

·         Townhouses

·         Single-family houses

Factors Influencing Rent Prices

There is no one straight answer to how much is the rent for an apartment in the Philippines because prices can vary greatly. Here are some of the pertinent factors that influence the price of rent in the Philippines. 

Type of Rental Property

As we have mentioned, there are different types of residential properties for rent. The type of property affects the price.

For example, condominium units may be considered more luxurious than apartment units and may come with amenities like pools and additional security. Meanwhile, a residential apartment in a building with commercial space for rent in Caloocan City, though convenient, may have lower rent than one in Makati City.

Size

Larger properties naturally cost more than smaller ones. So, apartments with additional features like balconies or garages have higher price ranges. 

Furnishing

Some properties come in different levels of furnishing. Some properties are rented fully furnished, meaning they have everything you’ll need from appliances and big furniture like beds, dining tables, sofas, and refrigerators to small items like pans and plates. Meanwhile, others are semi-furnished, so they only have appliances and furniture. Other properties also come bare, which means renters need to bring their furniture.

Location

The location of the property is a major factor affecting rent. Rent in Metro Manila is generally higher than in provinces. However, within Metro Manila itself, you may find fluctuations in rent costs depending on the property’s proximity to business districts, malls, and other infrastructure.

Local Economy

Naturally, the price of rent ebbs and flows with the economy of the Philippines, as well as the supply and demand. Renters may find higher rent prices during economic growth, which also usually leads to higher demand for apartments in key locations.

How Much is the Average Rent of an Apartment in Metro Manila?

Metro Manila is the capital of the Philippines. While other regions have their bustling metropolises, a lot of people flock to the National Capital Region for work. As a result, rent tends to be more expensive. If you’re planning to rent in Metro Manila, expect these price ranges:

·         1 bedroom apartment: Php 20,000 to Php 35,000 per month

·         2-bedroom apartment: Php 30,000 to Php 40,000 per month

·         3-bedroom apartment: Php 40,000 to Php 50,000 per month

·         Single-detached house: Php 30,000 to Php 60,000 per month

·         Townhouse: Php 35,000 to Php 60,000 per month

Keep in mind that these are ballpark figures. Some properties in more upscale areas may cost more. For comparison, here’s how much the average rent of an apartment is outside of Metro Manila:

·         1-bedroom apartment: Php 10,000 to Php 20,000 per month

·         2-bedroom apartment: Php 20,000 to Php 30,000 per month

·         3-bedroom apartment: Php 30,000 to Php 40,000 per month

·         Single-detached house: Php 20,000 to Php 30,000 per month

·         Townhouse: Php 15,000 to Php 25,000 per month

How Much Money Do I Need to Rent an Apartment?

Landlords and real estate agents have their own rules and requirements for renters.

You may find properties that require only a long-term lease, so you’re tied to one-year contracts or longer. Since you’ll be tied for a certain number of months, you should make sure that you can truly afford the rent for the duration of your lease.

Some owners limit the number of people living, so you may not be able to split the rent with roommates. This means that you can’t sublet the property as well, so you should have enough to cover the entire rent.

Most landlords in the Philippines require an advance worth one month of rent and a security deposit worth two months of rent. This means that you’ll need to provide the owner with three months’ worth of rent before you can move in.

These serve as security for the landlord in case of an unfinished lease, unpaid rent, property damage, or a violation of any of the lease terms. Don’t worry, though, because security deposits are refundable unless there were violations in the lease terms. You should also expect that the landlord will deduct costs for repairs or unpaid utilities.

So, how much should you prepare if you plan on renting an apartment? Let’s say you’re looking at a 1-bedroom apartment for rent in Caloocan City that costs Php 21,000, you’ll need to provide Php 63,000 upfront to cover the advance and security deposit.

However, keep in mind that the rent in the Philippines rarely includes the utilities, so you need to allot a budget for it as well. 

How Much Income Do I Need to Rent an Apartment? 

As a rule of thumb, your rent should not cost more than 30% of your gross monthly income. Following this rule, here are the income ranges you need to afford rent in Metro Manila:

Your monthly income is a good a benchmark for how much to spend on an apartment. However, you should also consider other factors like commute time and transportation costs when choosing an apartment.

How Much Should You Spend on Rent in the Philippines?

There are a lot of factors that affect how much is the average rent of an apartment in the Philippines. So, it’s important to choose carefully and consider the ideal location, size, perks, and of course, price for you.

Get the most space and perks for your budget with C2M3 Properties’ residential and commercial space for rent in Metro Manila.

Contact us today to learn more about our available listings!