A Guide To Renting Out Your Property In Thailand
Thailand has a very developed real estate market, including the rental market. While many projects offer their own rental management solutions and usually that's the most convenient option, it is nevertheless important for us that you possess full information before making a decision. Here are some options the market offers for generating rental income from your apartment or house.
Rental guarantee
Many projects, especially in resort areas, offer guaranteed rental income for the first several years. Typically, it’s 5-7% for 3-5 years. Buyers also normally get an option to spend 15-30 days per year in their unit (almost always there are certain blackout dates applicable).
Without going into a lengthy discussion about this model, we can give a piece of simple advice: always consider the fundamentals of the project first. If it wouldn’t be attractive without a rental guarantee - then it isn’t attractive with it.
Rental pool and revenue-sharing programs
Many new projects come with hotel-style management (or are literally managed by a hotel chain, such as a condotel or villa hotel). In this case, the owner can join a rental pool program, where the overall rental income from all units participating in the program is split between the owners (with the managing company taking its fee as well). This allows the management company to rent out units more effectively (since you always have more options for booking, it’s much easier to optimise occupancy on 100 units than on 1 unit) and also allows for more consistent income (even if your unit stood empty, you still get a share from the total rent).
When opting into such programs, it’s important to consider several things. What are the hidden fees? If it’s a hotel-branded residence, what is the nature and extent of involvement of the hotel brand? Is the property offering revenue-sharing or **profit-**sharing program?
Rental management
Thailand’s main destinations have developed rental markets, with multiple agencies serving landlords and tenants. Like with any service, it’s important to consider the agency's reputation and whether they are a good fit for you.
Ultimately these will work the same way as in any other country: you can either hand over your unit to a single agent to manage exclusively, or you can list it with several agencies and accept requests from them as they come (the latter option is obviously more involved on the owner side). Unlike the rental income-sharing programs discussed above, you only get income from your specific unit as it gets rented out. Agency commission varies depending on the market and the nature of rentals. Expect to pay 1-month’s rent on a yearly contract for a condo in Bangkok or about 15-30% (after consumables and booking platform fees) on a nightly rental of a villa in Phuket.
Maximise Rental Income with Luxury Villas in Phuket
Luxury villas in Phuket are among the soundest, most robust investments to be made in the Thai property market. Not only has tourism continued to grow exponentially, but the number of expats and locals who want to buy or rent luxury villas in Phuket has also increased significantly.
Whether the plan is to spend time in a relaxing, high-end location or take advantage of people’s desire to rent luxury villas, the opportunities have never been more widespread and varied. However, engaging the professional services of experienced, knowledgeable real estate agents like Sunway Estates is crucial to ensure a smooth, effective process.
Phuket Luxury Villas: Rentals
When we examine the market, we find that, in the case of Phuket luxury villas, rentals are in high demand. However, several key steps must be taken for a secure, official transaction and a seamless transition. Reputable real estate agents can help you secure sensational luxury villas in Phuket and facilitate the rental process, ensuring everything is as it should be to protect your investment.
Many developers have their own rental service. At the pinnacle of this concept, we can see some of the more prominent developers, especially in Bangkok, having their own in-house agencies: Sansiri has Plus Property, Ananda - The Agent, MQDC - The Estate and so on. While these started off as a way to help manage rentals and resales in developer’s own projects, over time, they evolved into full-cycle agencies that accept listings from other developers’ projects (there are even examples of these in-house agencies becoming master agents for projects from competing developers). Either way, these are usually a solid choice for managing a unit you purchased from their parent company.
Sunway Estates: Your Trusted Real Estate Expert
The potential to make significant financial gains when you rent luxury villas in Phuket is high, and it represents an excellent investment opportunity if handled professionally and efficiently. With sufficient time, research, and the assistance of experts on luxury villas in Phuket, it is a decision few come to regret.
Speak to the experienced, knowledgeable representatives at Sunway Estates today and take the first steps to rent luxury villas in one of the most desirable locations on Earth.