8 Terms of Housing Tenure

House hunters and property investors don't consider housing tenure as a "must-know" unless they encounter a rental. There is are other factors to consider in real estate beside the price, location, floor area, and design. Housing tenure plays a vital role in various decision-making.

The Philippine Statistics Authority (PSA) defined four housing tenures that exist in the country. Besides these four, there are other types of tenure. These categories came from the changes in culture and society. The lack of housing units and land areas enabled public and private institutions to offer their property to settlers.

Common housing tenures include:

1. home-ownership
2. rentals
3. settling for free with permission
4. occupied for free without consent or squatting

When the occupants are the legal owners of the land or structure, they belong to the first type of tenure. They have rights over the property even if it is on or obtained through amortization or mortgage. Meanwhile, apartments with landlord or lessee that requires its settlers to pay in cash or kind is an example of a rental.

The third kind housing tenure exhibits a household staying in for free. People have the owner's permission to live in the area without the hassle of renting. Farm tenants and employees with living quarters as part of their benefits are examples of this tenure. On the downside, they must leave the area once their contract or services end.

Last but not the least are the squatters or people with no permanent address (NPA). They occupy public and private properties without consent. Abandoned structures become their home until they find a new place to settle. Empty lots and outer parts of cities are breeding grounds of makeshift houses and shanties.

In addition to these four, other tenures exist because of the changes in the community. Non-profit organizations and public housing authorities facilitate the distribution of housing units. It's essential to note that not all of these are present in all societies.

Alternative Housing Tenure

1. Community Land Trusts
2. Cooperative Housing or Limited Equity Co-ops
3. Mutual Housing Association
4. Public Housing

These are flexible housing options with the influence of common housing tenures. Community land trusts are the most affordable housing options. They exhibit similar properties as home-ownership but with the monitoring of a cooperative. The cooperative takes measures to keep the price of the land or unit low for new residents in the low-income median.

Cooperative housing targets low to medium income households. The property belongs to a legal entity and comprises of residential units. If the housing complex belongs to a corporation and there are shares involved, a shareholder has the right to occupy a housing unit. The prices of the stocks have restricted resale values.

On the other hand, public housing comes from the government. They can be relocation settlements of displaced members of society. The government may bid the project to a non-profit organization or private entities. Still, accommodations are free or rented at a minimum price.

Last on the list are mutual housing associations. These exist in a Rockwell condo as homeowners have the chance to own their respective units while the rest of the area is under joint ownership.

Still, not all of these tenures exist in all communities. Societal and economic factor still bear influences on housing ownership.

Housing tenure is one way to leverage real estate investment. When you understand how laws and circumstances play a role in building your yield, you learn to time your investment. Moreover, you discover ways to combine real estate properties and tinker homeowning capabilities with the market flow.