Rental Income Potential: Turning Your Siargao Property into Profit

Siargao's booming tourism industry creates excellent opportunities for property owners to generate rental income. This guide explores how to maximize your returns through strategic property management.

Siargao's Tourism Market

Peak Season (November - April)

• Highest occupancy rates (80-95%)
• Premium pricing possible
• Advance bookings essential
• International tourist influx

Off-Season (May - October)

• Lower occupancy (40-60%)
• Competitive pricing required
• More local and regional tourists
• Opportunity for long-term rentals

Rental Income Projections

Beachfront Properties

• Daily Rate: PHP 5,000 - 15,000
• Monthly Gross (Peak): PHP 120,000 - 360,000
• Annual Gross Estimate: PHP 1,200,000 - 3,000,000
• Net Yield: 8-12% annually

Near-Beach Properties

• Daily Rate: PHP 2,500 - 7,000
• Monthly Gross (Peak): PHP 60,000 - 168,000
• Annual Gross Estimate: PHP 600,000 - 1,500,000
• Net Yield: 6-10% annually

Inland Properties

• Daily Rate: PHP 1,500 - 4,000
• Monthly Gross (Peak): PHP 36,000 - 96,000
• Annual Gross Estimate: PHP 360,000 - 900,000
• Net Yield: 5-8% annually

Operating Expenses

Budget for these ongoing costs:

• Property management fees (15-25% of rental income)
• Utilities (electricity, water, internet)
• Maintenance and repairs (10-15% of income)
• Cleaning services
• Marketing and booking platform fees
• Property taxes and insurance

Rental Strategies

Short-Term Vacation Rentals

Pros: Higher daily rates, flexibility for personal use Cons: Higher management demands, seasonal fluctuations

Long-Term Leases

Pros: Stable income, lower management effort Cons: Lower rates, less flexibility

Hybrid Approach

Combine short-term rentals during peak season with long-term leases during off-season for optimal returns.

Property Management Options

Self-Management

• Full control over operations
• Maximum profit retention
• Requires local presence or remote management capability

Professional Management

• Hands-off approach
• Professional marketing and guest services
• Typically 20-25% commission
• Recommended for absentee owners

Hybrid Management

• Owner handles bookings and marketing
• Local staff manages day-to-day operations
• Balanced approach for involved owners

Maximizing Occupancy

1. Professional Photography: High-quality photos are essential
2. Competitive Pricing: Research comparable properties
3. Multiple Platforms: List on Airbnb, Booking.com, and local sites
4. Excellent Reviews: Prioritize guest satisfaction
5. Unique Amenities: Stand out with special features
6. Responsive Communication: Quick responses increase bookings

Legal Considerations

Ensure compliance with:

• Local business permits
• Tourism accreditation (DOT)
• Tax obligations (income tax, business tax)
• Safety and building code requirements

With proper management and strategic positioning, your Siargao property can generate substantial rental income while appreciating in value over time.