You own a property and have decided that you want to become a Landlord.
This can be very rewarding as you will start to yield income and realize the return from your property investment.
At the same time this can also be frustrating if it is not done properly.
So, we have prepared this guide to make sure you have the best experience when renting your property.
As a Landlord you will have to decide on your rental operation plan.
Here are the three (3) options : Daily Rentals, Short-term Rentals, & Long-term Rentals.
Let’s begin with Daily Rentals, this is the most attractive option because it is the highest yielding one.
However, before you get all excited it is probably best to check with your lawyer or agent if your property can legally operate daily rentals.
When operating daily rentals, keep in mind that this is very similar to running a hotel or a guesthouse.
We advise Daily Rental Property Owners to make sure that their rental clients, probably best to refer to them as ‘guests’ from now on, have an experience which would resemble staying at a hotel.
This means your property has to be completely fitted & furnished, including electronics and appliances.
Every little detail should be considered from beverages & snacks in the fridge to the toiletries found in the bathroom.
Take all means necessary to make your guest’s stay as comfortable as possible, this includes Cable TV and Internet. Cleaning service should also be available for the guests.
The key for Daily Rentals is in the guest experience.
This will be one of your top priorities because good guest experience equals good guest reviews and will eventually generate you more business.
How is this achievable? Work. A lot of work. This is the secret to good service. You need to be prepared for the work. You have to be ready for it. From the check-in to the check-out. Their stay has to be perfect. Handle your guests’ requests, objections and complains professionally at all times.
Another important key is the presentation of your property.
We cannot emphasize how important your staging and photos are for this type of operation.
Honestly, customers will see the property photos online before checking the review.
So, if you want to grab anyone’s attention online your photos better look great.
Overall, Daily Rentals are the most profitable but also comes with the most work.
However, wear & tear will be faster due to the number of guests.
It would be smart to set aside an account for repairs and maintenance.
Also, consider replacing the furniture after a set period of time or perhaps upgrading your property.
Renovations or simply selling and investing in something new.
If you think it is time for an upgrade, contact us and we will help you with all your property needs.
If your property cannot legally be rented out on a daily basis and you want high yields as well, consider this as your next best option.
Short-term Rentals start from a minimum of one (1) month and can be as long as you require but typically under six (6) months.
This operation strategy offers not only high monthly yields but also flexibility.
Owners who use their property as holiday homes tend to consider this option because if it’s vacant and has the potential to make them money. Why not?
Just imagine while being away from Thailand your property can be making money.
So by the time you get back here; you’ll have your own place to stay with zero problems trying to book accommodation and income to collect.
Sounds like a dream but this is actually a reality for some property investors in Pattaya.
If you want to get started with your own short-term rental investment, contact us and we’ll find you the perfect holiday home.
Setting up your property for a Short-term Rental operation is quite similar to Daily Rentals but you could go without the finer hotel details like bathroom toiletries or the snacks & beverages in the fridge.
You would need at least beddings and towels. Electronics & appliances are a must.
Think about all the things that wouldn’t be reasonable to move-in and then move-out from a property.
Okay, so that’s what you would have available for your renters.
People who short-term rent won’t be staying long, so they would find it convenient for them to have these items already in the property.
Short-term rentals will obviously not have as much rental client traffic as daily rentals but you will still have to deal with repairs and wear & tear.
The rental market is competitive and you’ll want to keep your property in good condition at all times.
Staying on top of all repair work is a good way to make sure that at the end of the day you are dealing with a well-maintained property.
Don’t forget to replace & update your furniture from time to time.
You can lose a lot of business just because your property looks dated.
Upgrade when necessary as it will justify your property value.
You never know when you would want to sell and buy a new property, but when the time comes don’t forget to contact us.
This is the not the highest yielding rental operation but is by far the most stable and also involves relatively the least amount of work.
Long-term Rental Contracts are typically one (1) year agreements or more.
Keeping the period between your check-ins to your check-outs as long as possible.
Those who invest in real estate consider this option because it is the least time consuming.
That steady yield for them is just the cherry on top of the profit they make from the increase in property value over time.
Also, your wear & tear will not be as much compared to Daily Rentals or Short-term Rentals.
Furnishing your property for a Long-term Rental Operation is a bit different.
You could rent out a property completely unfurnished, however renters who see unfurnished properties and use it to negotiate the rental rate.
With that being said, furnishing your property does directly affect your rental rate.
People will always pay for convenience, and for a renter moving in to a furnished property is just incredibly convenient.
Now it has become a common practice in Thailand for most rental condos to be fully-furnished.
Probably because nowadays condos are associated with convenience more than ever.
As for houses, you could still probably rent it out unfurnished for long-term because there are some people who still want to have their own furniture even if they are just renting.
However, our advice is best to keep your rental property as convenient as possible.
Why? Because it will be easier for anyone to make a decision to rent it.
Remember any inconvenience can become an objection and if not dealt with properly could mean you losing the deal.
If you are interested in investing in long-term rental properties or have long-term rental properties you want to be properly managed, contact us we will help solve all your property needs.
Keeping an inventory list is going to be very helpful.
It will allow you and your client to have a written understanding of all the property’s contents.
When the check-out time comes it will be easier to settle any costs for lost or broken items.
But, just presenting an inventory list during your check-in almost always make the rental client more conscious about your property.
Keep your check-in & check-out process very organized.
You would want to have a standard procedure to make sure it is a fast & easy experience for the rental client.
Do not miss out on any details during this process because it could cause problems later and could ruin the whole rental client’s experience.
All properties need management and for rental properties this is even more so true.
Every rental property operation needs to be managed.
From check-ins & check-outs to handling repairs, you want to make sure your property is always ready for the next rental client.
Yes, this is work and it takes up time but it’s necessary for your property to continue generating rental income, that’s the goal.
If you are looking for a full property management service, contact us we can help manage all your rental properties.