Bangkok is a growing metropolis with good employment opportunities. As every city develops there are increased job opportunities, which require more and more people to join the current labor force in the country. Increase in job opportunity and economy overall has a direct impact on the real estate sector of the country. With more and more people coming to the city for employment there is always pressure on the existing real estate scenario in the city.
Bangkok is one such city, which is undergoing this huge change due to increasing number of expat population coming to the city for employment and for living a peaceful content life. Expats coming to Bangkok prefer renting a condo for a long-term and if you own a property in Bangkok, then renting out your property is not very difficult if you follow certain tips that will help you get good returns from your investment. Renting out your property will help in getting some extra income in the form of rents, but to achieve good returns from your rental property it is necessary to plan better before you put your property in the rental market for good returns. The following are some tips you need to follow to protect yourself and your property.
Renting Out your Property
Prepare your rental property
Prospective tenants are very choosy and will always want a property that is clean. When the overall economy is slow and there is a huge supply of rental homes in the market the tenants tend to be very careful before choosing a property and their expectations are also very high from the property. Keeping these factors in mind the landlord needs to keep his home clean and all the furnishings and appliances in good working condition. A presentable house will instantly appeal the visitors and create a lasting impression in their minds.
Set a Realistic Price
Rental price is very sensitive and depends a lot on the economic situation, amenities, and going price in the locality. Rental price should be set according to the going rates in the locality. The rate should not be too high or too low. Calculate the average rental price in the area and the rent for similar type of condominium in the same locality to arrive at a cost. If your house has some additional features that are not found in the similar condo in the same locality you can charge an extra amount. Remember that tenants are intelligent and will look out for many other condos with similar features hence you need to highlight all the special features that will be available at your home and that stands out from other homes in the locality before arriving at a cost. Most new condominiums are not furnished and are already for rent in the market, but if your condo is fully furnished at the time you have an advantage of good rental income due to short supply of furnished condos.
Find a good Tenant
Finding a good and reliable tenant is extremely essential for a landlord. As soon as you prepare for renting out your property by cleaning the home and furnishing it start looking out for a good tenant. The tenant should be able to pay the rents on time and also keep your property in good condition. In Thailand, especially you cannot ask the tenant for bank statements, but you can check his profile from his employer as this will at least be a small security.
Looking out for a Tenant
As we all know that it is necessary to find a good tenant it is equally important to know how we can look out for a tenant. There are many different ways to promote your condominium and some of the popular methods are classifieds in the newspaper and magazines. These classifieds are usually free of cost and will help cut costs towards commission as you deal directly with the customer. The other most commonly followed technique is to stick ads on public signs or boards, which is ideally not a good proposition as it can be against the law and also will not impress good customers who are very sensitive to these issues. The third best way is to hire a property agent who deals with thousands of properties and has good expertise in this field. Most people prefer this technique as it cuts down your workload and eliminates the difficulty of dealing with an expat. An agent will help promote your property better and is technically better equipped to find tenants quickly. A good property agent will take care of your requirements as well as your tenant during the lease period. Generally agents charge one month rent as commission fee for a lease of one year.
Prepare the Rental Agreement Contract
The rental contract is a very important document that describes the rights and limits of both parties and the content of the agreement should contain the following terms.
• Start Date of the lease, lease term and the end date
• The security amount, which is usually two month’s rent to cover for any damages incurred during the tenure of the lease
• Due date of the rent and any penalties for late payment should be clearly mentioned
• Any policies regarding pets
• The contract should mention who will pay for any repairs, damage and maintenance to a particular part in the home. So if there is any damage to the property it will not cause any trouble for both parties
• The agreement should also include the list of furniture provided and its condition. In case of any damage to the items within the property at the end of the agreement there is enough proof to prevent untoward incidents and arguments.
The above list contains some points that are required to be mentioned in the agreement for renting out your property, but in consultation with a lawyer you can add more clauses to the contract. It is necessary for both parties to agree on these terms for a cordial relationship that can last forever.
Signing the Rent Agreement
A rental agreement is necessary in most countries. In Thailand agreement between two parties is necessary or else it can become difficult to take any legal action in case of a problem. To secure the lease the rent agreement should be signed by both parties to secure the transaction. Both the parties should attach their ID card or passport copies to the agreement. If the lease period is for more than three years it is imperative for the landlord to register the lease agreement with the land department, otherwise you can take legal action only in the first three year, but cannot do so after that.
Hire Knowledgeable Professionals
Renting out your home may seem easy, but it is necessary to talk to lawyers and professionals to understand the legalities, tax laws and the local property rules.
The above list contains some points that are required to be mentioned in the agreement for renting out your property, but in consultation with a lawyer you can add more clauses to the contract. It is necessary for both parties to agree on these terms for a cordial relationship that can last forever.
