How to Start a Staycation Business in the Philippines as a Foreigner

A Smart Investment Guide Featuring SMDC and Good Stay

The Philippines, with its tropical charm, hospitable culture, and booming tourism industry, is rapidly becoming a hotspot for property investments—especially in the staycation market. If you're a foreigner looking to capitalize on the growing demand for stylish short-term rentals, launching a staycation business here is not only possible—it’s highly profitable when done right. Let’s explore how you can start your staycation venture in the Philippines, featuring SMDC as your top developer and Good Stay as your essential partner in furnishing and leasing.

Why Choose the Philippines for a Staycation Business?

The rise of domestic tourism, remote work culture, and demand for urban escapes has fueled the popularity of staycations. With low cost of living, high rental yields, and a friendly real estate market, the Philippines offers a unique opportunity—especially in metro areas like Metro Manila, Cebu, and Davao. For foreigners, this business model works best when done through condominium ownership—one of the few legal ways non-citizens can own property.

Understanding the Developer: Why SMDC Leads the Market

SMDC (SM Development Corporation) is the residential development arm of SM Prime Holdings, the largest integrated property developer in the Philippines. Known for their strategically located, amenity-rich, and well-managed condominium communities, SMDC offers a perfect foundation for your staycation venture.

Here’s why SMDC condos are ideal:

  • Prime Locations near malls (like SM Mall of Asia), airports, CBDs (Makati, BGC, Ortigas), and tourist spots.

  • Integrated Lifestyle: Retail, dining, fitness, and entertainment are built-in.

  • Investor-Friendly: High capital appreciation and solid rental income potential.

  • Consistent Quality: Uniform design standards, security, and building management across all projects.

Some top SMDC projects for staycation rentals include:

  • Shore Residences (MOA Complex, Pasay) – near Manila Bay and airport

  • Light Residences (EDSA, Mandaluyong) – transit-oriented

  • Air Residences (Makati) – heart of the business district

Choosing the Right Condo: Location & Type Matter

Success in the staycation business starts with choosing the right property. You’ll want a condo that offers:

  • High tourist traffic – proximity to airports, malls, and attractions.

  • Accessibility – near major roads, MRT/LRT lines, and transport hubs.

  • Smart unit size – studio and 1-bedroom units are cost-efficient and in high demand.

  • View and amenities – pools, gyms, lounges, and city or bay views elevate the guest experience.

Here are some top-performing unit types:

  • Studio Units – Lower investment, quick ROI, high turnover.

  • 1-Bedroom with Balcony – Better for longer stays, couples, or small families.

  • Loft-Type or Corner Units – Ideal for premium stays and differentiated offerings.

Furnishing & Leasing Made Easy with Good Stay

Once you’ve secured the condo, your next move is to furnish, list, and manage it effectively. That’s where Good Stay comes in.

Good Stay is SMDC’s trusted leasing and property management partner. They offer turnkey solutions designed for staycation entrepreneurs, including:

  • Professional Interior Styling & Furnishing – Tailored for Instagram-worthy appeal.

  • Cleaning, Linen, and Maintenance Services – Ensuring 5-star guest satisfaction.

  • Marketing & Booking Management – Your unit gets listed on Airbnb, Agoda, Booking.com, and other top platforms.

  • Guest Communication & Check-in Support – 24/7 support ensures repeat bookings.

Partnering with Good Stay eliminates the usual startup headaches. You don’t need to be physically present in the Philippines—they manage it all for you.

Legal Tips for Foreigners

  • Foreigners can own condominium units in the Philippines, as long as foreign ownership does not exceed 40% of the total units in a building.

  • You can buy under your personal name or through a local partner (or corporation) for multiple properties.

  • Always work with a licensed real estate broker or SMDC property specialist to guide the process.

  • For leasing, consult with local legal experts to ensure you're compliant with BIR tax requirements and city ordinances for short-term rentals.

Final Thoughts: Building Your Passive Income Business

The staycation market in the Philippines is a ripe opportunity for foreign investors who want to build passive income streams with low management hassle. With a reputable developer like SMDC and a seamless service provider like Good Stay, you can confidently start your staycation business—even from abroad.

From high occupancy rates to capital appreciation and a growing pool of tourists and digital nomads, the formula is clear: Right Location + Quality Condo + Expert Partner = Staycation Success.

Ready to invest?
Contact an SMDC Property Specialist today and ask how Good Stay can help you turn your condo into a full-fledged hospitality business.