Owning a rental property in Thailand is exciting and an excellent way to generate profits for yourself over time.
Unfortunately running a profitable rental business isn’t as simple as just buying the unit and then renting it out.
More time and care must be taken to determine just how much you should be renting the property out before you try to start making a profit from it.
Price it too high and you’ll scare renters away, price it too low and you’ll lose money or miss out on potential profits.
It’s important to really think about how to price it and to use the following tips to help you do just that.
While trying to determine the price for your rental property, also take the time to contact a qualified contractor in Thailand to make sure you have someone to handle remodeling tasks and serious repairs that you need for your rental property as well. Contact a contractor today so you’ll be prepared for future home improvement tasks as they arise.
Charge a Competitive Rate
The most important thing you can do as a property owner is charge a competitive rate when pricing your property. To do this, you need to look at other rental properties in your area and compare costs and amenities. Find comparable buildings of the same type and try to position your rent in the same general range. If you are careful about doing this you should be able to create a competitive price that locals will be interested in.
Pricing your property too high could cost you months of rent while trying to convince someone to move in, and all that lost rent could end up being much costlier than a slightly lower rent price per month, so think long and hard about the price that you set, and try to stay competitive with the other properties in your area.
While determining a competitive rate for renters, you also need to consider the cost you may need to pay for property taxes on the property. To ensure you charge your renters adequately, you also need to make sure you are covering taxes and other expenses so you don’t end up owing more than what you charge your tenants for renting the property.
Consider Adding in Maintenance Services
To help make your rental property appear to be more valuable you can throw in additional services such as yard care, include garbage pickup and other maintenance services that don’t come standard to property in Thailand. Doing this will allow you to charge a higher rent each month and will make it easier for you to find interested tenants that are willing to move in right away.
Adjust the Price Based on Demand
Sometimes this can be difficult to determine, but look around at other rental units to see how quickly they are filling up. Call a rental facility nearby and inquire about how long the wait is to get property. If there are many vacancies, price your property at market level or even a bit under it. If most of the rental properties have long waiting lists, raise your prices above the competition slightly. If you can effectively gauge the market demand for real estate, you should be able to get the most rent from your property as possible.
It can be difficult figuring out how to price your Thailand rental property properly, but with enough research you should be able to determine exactly how much to charge to get the most money from your investment.