A Guide to the Rental Property Market in Thailand: What you Need to Know
If you are an avid investor who is looking to diversify your investment portfolio, you may not have considered investing in a rental property. Indeed, many investors have gone down this road and are very happy that they did! It must be regarded as a business that involves property management and prior to moving into the sector, you need to crunch the numbers to see what kind of returns you can expect.
Property Management Company
Almost all rental homeowners outsource the work to a leading property management company, as they handle every aspect of the business, from sourcing and vetting tenants to end-of-tenancy cleaning and building maintenance. It is worth noting that, as a landlord, you have many obligations to your tenants and this means a lot of responsibility, which is where the property management company comes into play.
Purchase a Holiday Home
This is a good way to get your foot onto the rental property ladder; start be searching the listings of Coastal Real Estate in Pattaya for a suitable property that you can acquire and lease it out to holiday makers during the times when you are not using the home. Let’s say you stay in Thailand for 6 months per year, you can rent out the property for the remaining 6 months, which gives you a very healthy income. Many real estate moguls started with buying a holiday home, which leads to acquiring a second and third property, and the rest is history.
Crunch the Numbers
The best way to make an informed decision is to list the total cost of buying the property, plus the money you spend to make the property ready for occupancy, add to that the property management fee and you can then look at the rental prices for a property like yours and see what kind of return you get on your investment. Click here for tips when buying a rental home.
Create a Business Plan
Of course, you should register your new business with the Thai government and file your tax returns as required; we recommend enlisting the services of a good business lawyer, who can ensure that you pay minimal taxes. The business plan will outline every aspect of the organisation, enabling you to highlight strengths and weaknesses and develop the business while expanding.
Of course, when dealing with tenants, conflicts will arise and the laws do protect the tenant more than the landlord. If you hook up with a good property management company, you have their legal team on call 24/7. Tenants tend to be very well-versed in the laws and when an issue arises, you need to seek legal counsel before responding. Doing so at the outset will ensure you do not incriminate yourself; the more properties you own, the more you need legal help.
Real Estate in Thailand
As you probably know, foreigners are not permitted to own land in Thailand; when you set up a limited company, it is the organisation that owns the real estate. An experienced accountant can ensure that you take advantage of tax concessions.