Bangkok real estate is believed to be a buyer’s market and a renter’s paradise, and in this article, we take a look at why buying a condo and then renting out your condo in Bangkok could be a very lucrative and positive return on your investment.
Bangkok is considered a buyer’s market due to condos being posted for sale in different neighbourhoods, with each location boasting its own charms and features. The sky is the limit as of late each condo developer in Thailand is aiming to offer the best of luxuries within the condo unit in different neighbourhoods, with each area being connected via different modes of transport such as the BTS sky train and MRT underground system to ensure accessibility.
There are also many ways Bangkok is a renter’s paradise especially if you own a condo in the prime neighbourhoods of the city such as Sukhumvit and the surrounding areas. The choices to get rented condos are plenty for buyers who connect with experienced real estate agents and get options that suit them the best.
Facts About Renting Out Your Condo in Bangkok As A Foreigner
Purchasing a condo in Bangkok is a dream many foreigners who travel to Bangkok aspire to. Many businessmen and entrepreneurs make many short trips each month. If you find that you are visitingBangkok on a regular basis it might be a good decision to start looking for your own home away from home in Bangkok.
In the past, many have wondered why they should own a property in Bangkok if they are not going to be there permanently. If you are lucky enough to be able to afford a life of luxury then owning an apartment in Thailand is a must consideration. Not only because you have someone to call home when you are there but, you can also earn from holidaymakers visiting Thailand on short stay vacations.
There has been an increase in demand for rental services through either long-term or short-term rental contracts due to the recent Covid pandemic, War and increased living expenses worldwide. People want the experience of living and working abroad and your Condo can make their dreams come true and earn your a nice ROI (return on investment) in return.
Renting out your condo in Bangkok could be a very lucrative long-term strategy as the Thailand Property Market is doing relatively well with much growth potential over the coming years with upgraded infrastructure, rules and regulations around business and visitor visa requirements. You can read this post breakdown of the Thailand Property Market for 2022.
As per the condominium act, condos in Thailand can be rented out by foreigners to foreigners provided a few rules and regulations are followed. One of these rules includes that the foreign owner should have a clear title deed of the unit in his name. The second rule is all government taxes and services should be paid on time without fail especially if the unit is a way of earning revenue by a foreigner on Thai soil. A good way to ensure that all taxes and maintenance fees are paid on time is to have an escrow system in place for these fees.
Renting Out Condominium Units in Bangkok – Short Term Rentals
While there are many ways to rent out a condo in Thailand using Airbnb and similar apps, it should be noted that not all condo complexes allow foreigners to rent out condos for long-term use. This is especially true without the help of a managed property service company that can smooth out issues that might arise from rentals. Due to this limitation, foreign condo owners often keep their condos locked up without getting a just and fair Return on Investment for buying the condo unit. You can find a little more information on the legal aspects of renting out a condo using Airbnb here.
Renting Out Privately Owned Condos With Managed Property Services
Managed property services ensure that condo owners are connected with people interested to rent the condo unit through a reputable and preferred agent such as Silk Estate. The job of a managed property service goes over and beyond connecting buyers, as such companies also ensure the upkeep of the unit when it is not being used. Right from maintenance to repairs, managed property service companies do all of this, with the explicit consent of the owner yet without bothering him repeatedly.
Managed property services have a scope of work that includes; relaying tenancy as well as upkeep issues to the condo owner, advising tenancy solutions to property owners and also offering check-in, and check-out solutions for rentals that stay in the condo for the decided period of time.
More often than not, managed property services are based locally and have the needed vendors to complete all on-site duties which include installing fixtures, completing repairs and ensuring that the maintenance of the condo is by industry standards of health and hygiene. They also ensure that all wear and tear done after the condo is rented out is handled quickly. They offer ease and convenience to the landlord without disturbing to find real-time solutions while the landlord is overseas and renting out the unit.
Usually, managed property service firms work on a contract basis and take a small commission for their time and effort. Managed property services might ask for either a fixed fee per square foot or a commission based on the rental amount. This fee is charged for the property they are renting out, managing and maintaining and is usually a negligible amount compared to the rent they generate for foreign condo owners.
Some managed property service providers such as Silk Estate can also help you draft and create a rental agreement as per Thai laws that can protect your rights as the landlord while ensuring a peaceful stay for your tenants.
Choosing the Right Managed Property Service Provide
The last few years have seen an influx of rentals in Bangkok where foreigners wish to live in a fully furnished condobut do not want to buy a condo unit due to shaky circumstances especially due to the economy and the pandemic. While many areas that are in the central business district are seen as prime neighbourhoods, upcoming areas on the outskirts of Bangkok are also in demand as these areas offer greenery, peace and tranquillity with the right mix of convenience and accessibility.
The right real estate agent and Managed Property Services firm can ensure that your condo is packaged well, marketed adequately and rented out to tenants that you prefer all without you having to lift a finger or worry about your property while you are overseas.
Renting out Condotel Units In Bangkok
Condotels while an old concept in Bangkok is gaining popularity by the day, as condotels allow foreigners to own 1 to 3 condo units in prime properties that are located inside hotels. The concept of condotels is pretty simple, the person buying the condo is allotted a certain number of days every year he can live in the condotel unit while he visits Bangkok. For the balance days of the year, he is asked to rent back to the hotel and earn through this rental. The rental amount is usually based on a shared pool with other condotel unit owners and this amount is paid in the form of a percentage to each condotel unit owner.
While this share offers a good return on investment for Thai property owned by foreigners, fees such as maintenance and repairs may come out of the rental pool share. Reading the terms and conditions of the Sale and Purchase agreement is a must for foreigners purchasing Condotel units.
It should be noted that in the case of condotel rentals, the owner of the unit cannot rent out the property to anyone other than the hotel. Doing so without the consent or knowledge of the hotel can cause legal issues that can be tough to tackle especially if the condotel unit owner lives overseas.
Choosing A Rental Option In Bangkok for Condo Owners
There is no shadow of a doubt, that your condo unit can be a good way to get an increased return on investment if you don’t use it all the time, choosing a rental option that works for you is a must. If in doubt, weigh your pros and cons, as well as speak to a reputable real estate agent and property management service provider such as Silk Estate before you make the final call.
Silk Estate has helped numerous foreign owners over the years find rentals for their condos, on both a short-term and long-term basis. We pride ourselves on offering seamless solutions, right from handling rental choices to maintenance and managing wear and tear without distressing overseas landlords a slight bit. We offer both listed properties on our website and unlisted prime properties for sale and rental to an elite group of clientele looking for the very best in the city of Bangkok.
Contact Silk Estate today to learn about your options for renting and earning from your Bangkok condo. We have a higher service standard than other Property Management Service providers in Bangkok.
There is obviously a lot more to renting laws and regulations in Thailand and Silk Estate recommend contacting a lawyer as everyone’s circumstances are different. If you would like to get in touch and discuss the potential option of buying or renting a condo in Bangkok make sure to get in touch and arrange a call.