If you are toying with the idea of investing in condos in Thailand and renting them out to tourists, you aren’t the first foreigner to wish to enter this arena and you won’t be the last. Many foreign entrepreneurs have moved into the rental market in Thailand and in this short article, we outline various aspects of setting up such a business.
Setting up a business in Thailand
Of course, you want to do everything above board; if you have a Thai partner, you can set up a private limited company with your partner holding 51% of shares while you hold the remaining 49%. You can set up an investment company that is 100% foreign owned (talk to a Thai lawyer to find out how this is done). To get an idea of market prices, check out some of the luxury Pattaya property for sale and this will whet your appetite.
Property management company
You will need to forge a business relationship with a local property management company and such a company can do a lot for you:
- Source and screen potential tenants.
- Maintain the property.
- Provide 24/7 security.
- Handle rental payments on your behalf.
- Deal with tenant enquiries.
Most foreign investors use property management companies and as you expand, they take the strain.
High season rentals
Most foreign condo owners stay in the property during low seasons and rent it out for the high season (November to March), when rental prices are at a premium. This brings in a healthy income for part of the year, which is preferable to leaving the unit empty and if you choose the right development, your unit will be easy to rent. If you run a business, here are the many benefits of managed IT services.
Bookkeeping & accounting
Of course, as with every business, you must keep records and file tax returns, a local accountant will ensure that you pay minimal taxes. Check out the Thai Board of Investment website for more information on investing in real estate.
Expanding the business
If you have access to significant wealth, you might wish to acquire land and build luxury homes to order. Such developments can make you very wealthy if the project is handled well and for the foreign client, you have a comprehensive service from land purchase to design and completion. There are several large property developers that have done very well over the years and with some careful planning, there’s no reason you can’t develop prime real estate with luxury holiday homes.
Whether you are looking to rent out your home 3 months a year or acquire several condo units, getting into rental property in Thailand is a very attractive proposition for the foreign investor. If you would like to learn more, Google can take you to websites that have the information you are seeking.