Satisfactory return for your rental property
Thailand is experiencing a very positive response in the private rental market. Many regular visitors who are familiar with the country find that the facilities offered by the traditional hotels or resorts to be somewhat "cloistered". With the current upswing in development in many areas, Thailand is becoming known as a destination where you can take advantage of renting a privately owned home or apartment for holidays or for long term rental.
Company Vauban’s local team provides a comprehensive list of property management services for individuals or companies who wish to rent out their properties or to ensure that their property is well maintained at all times.
Each of our home owners is handled by our experienced and qualified staff and partners who have worked for a long time in the sector of the rental and property management market. Our flexible approach has become known across Thailand to be one that provides the maximum benefit to the owner and that caters to the owner’s individual rental requirements.
1. Prop. Management & Rental Services
You must have a clear idea of what your motivation is when you are thinking about the different choices you have in regard purchasing a home. If you are considering renting your property and you want the highest return possible then you should consider using your property as a holiday rental. If you are purchasing a home solely as an investment then your expenses will be somewhat decreased and when you eventually sell your property you can generally expect a nice profit.
You have a staggering amount of things to keep in mind if you are going to use your home as a rental property, whether it will be used as a holiday rental or as a long term tenancy. You should carefully think about the fact that you will be opening up your home to complete strangers.
Company Vauban provides good marketing strategies that include press, Internet, and inter-agency campaigns. Advertising is done selectively both locally and internationally. Advertising could also be done at the major property trade shows around the region.
Company Vauban’s full rental service includes the following items :
- Home inspection
- Processing of deposit and payments
- Inventory and damage check
- Deposit refunds when applicable
- Rental fee collection
- Advise on rental home set up
- Tax planning
- Marketing materials
- Printed materials
- Complimentary supplies
- Photographs
- Documents for legislated requirements
- Website exposure
- Managing guest satisfaction
- Linen services
- Daily maid services
- Maintenance and repair advice
- Vetting and selection of clients
- Check in of guests
In order to properly care for long-term tenancies, we provide owners a variety of services. The tenant is expected to make payments for the rent and any routine services such as upkeep of the pool, garden maintenance, satellite TV subscriptions and their own utilities. The owner would be expected to pay for pest control, insurance fees, and any management charges.
We provide a wide array of services to our clients, which are typically related to holiday tenancies such as daily maid services and linen changes twice per week.
If you are not interested in renting your property, Company Vauban provides a list of property management services that ensure your home is in good condition at all times.
2. Investment Returns
Inevitably the number one question on the minds of potential owners of rental properties is "How much will my return be?" The answers to this question are not easy as they are subject to any number of factors. In some cases influencing factors may be related to global or regional events that may have an undesirable affect on the real estate market. Another factor that would be of key importance would be the frequency and types of tenancies.
Historically, two and three bedroom apartments or townhouses with a private pool or a shared pool offer the highest returns. In fact, at present tenancies with the best performances receive over 8% return per year prior to any expenses.
Other factors that may perhaps influence the rate of return, besides general maintenance, would involve such things as the size of the garden and the upkeep of the pool, insurance, taxes, pest control and management fess for homes on estates. In order to properly comprehend the full ramifications of receiving income from rental properties it is essential that you obtain advice from an independent tax attorney.
3. Tenants
In Thailand there are typically only two main types of tenants. First are the holiday travellers that will need short term accommodations. Next are those individuals who will be staying for more than three months, but will not be staying on a permanent basis. Those individuals are generally classified as long-term tenants.
Most long term tenants are professionals in search of either a two or three bedroom furnished dwelling. In particular, families with older children are the ones that will be seeking long-term rentals. They will more often than not be coming to Thailand to work on a contractual basis, but in some cases they are looking for a temporary place to live until they have a home built to their specifications.
From November until April it is virtually impossible to any available rental properties in Thailand ! This period is known as 'high season' and is a highly popular time for holiday tenancies. Besides Christmas and New Year, also included during this time frame are of course Chinese New Year, Easter and the Thai holiday "Songkran" (Water Festival). Most expats based in Asia will take their vacations at this time as well.
Over the 'high season' rental rates are much higher than long-term tenancies as they include many added services. The best time for owners to make any improvements, renovations or alterations to their properties should do so during the low season. However, it is not easy to determine which type of dwelling, either an apartment or villa, rents the best over the high season as the requirements for each tenant will vary.
