How Much Should I Rent My Condo for?

Condominiums have become an increasingly popular option for real estate investors in Thailand. This kind of housing grants the investor fractional ownership of common areas, besides the units themselves. It is a form of property ownership that is permitted to both locals and foreigners. 

They are available in a variety of sizes and configurations that allow for just about anyone with a reasonable budget the ability to own or rent. Having such close neighbours also ensures you get to enjoy better security from all sides. Condos are also a great way to enjoy conveniently located housing in highly populated areas, with easy access to a range of amenities nearby. Some even come with their own on-site swimming pools, gyms and garden areas. Such facilities make it easy to forego individual landed properties that lack such benefits.  And because such amenities are a shared responsibility, their maintenance and repair costs are made more affordable.  

For those investing in condos to rent out, a key consideration has to be how much rent they can charge. The rent that is collected will be the return made on the investment. However, one cannot just charge any amount they want. Multiple factors have to be balanced to ensure a fair return to the owner, while still providing value for money for the tenant. 

Location 

High-end condos in central Bangkok will certainly command a higher rent than most other parts of the city. This is a highly desirable location for those working in the financial districts. Those that are conveniently located close to train stations and major roads are highly sought after. Being close to markets, top schools, and healthcare facilities can also justify charging higher rents. 

There are however also benefits associated with owning a condo to rent in less populated areas. These tend to have more green spaces and offer a more peaceful living environment. How much you will charge will often be pegged by prevailing rates in the area for similar properties. 

Commutes

The convenience of being able to easily get to work is a key factor. More so in Bangkok that is highly plagued by major traffic jams. This has made modern properties that are conveniently located near rail network stations very sought after. It all depends on which lines are served by the area and in which direction they run. 

Tenants prefer a commuter rail system that takes them within walking distance of home and work. The fewer stops along the way and less need to change trains, the better. Condos close to the BTS and MRT systems tend to have strong demand. And with more people seeking out such condos, the higher the rent that can be charged. 

Amenities

When investing in a condo, you have to consider the amenities that the developer will include to make the occupants stay more comfortable. Any tenant you have will be able to enjoy these amenities. These are typically on-site benefits shared with other co-owners of the building, and their tenants. This can include gyms, swimming pools, children’s playgrounds, garden areas, parking spaces, laundry facilities, and rooftop entertainment areas. 

The inclusion of these amenities will often mean a higher price tag on the condo and in common area management fees. This will ultimately push a condo owner to increase the rent to cover the costs. While extra amenities do mean more value for the tenant, they should not price you so far above nearby competing properties. This will make prospective tenants more likely to choose to live elsewhere. 

Furnishing

Furnished condos are common in Thailand. Many ex-pats prefer to rent an already furnished unit rather than having to buy furniture they will later need to sell when leaving. Furniture rent is however signed for as a separate lease and can be as much as the rent of the property itself. 

Though this income is taxed at a lower rate, it makes the total rent charged to be much higher than if you offered the condo unfurnished. If you are targeting tenants that will have a limited stay in Thailand, it makes sense to furnish the condo and enjoy the added income that comes with it. 

Maintenance

Depending on how the condo is being administered, it may be the responsibility of a property management company or condominium juristic person to oversee matters of maintenance and repairs. This however tends to mainly relate to common areas. Minor repairs and maintenance within the condo will typically be handled by the condo owner. They can however prove costlier the longer one has a tenant. 

If you pass responsibility for such repairs to the tenant in the lease agreement, you can likely charge less for rent. This is because maintenance and repair work can account for as much as 10% of the total rent. The more responsibility the tenant takes up, the less money you will have to spend out of pocket as the landlord, and the lower the rent you can charge. 

Condo Size and Style

Older apartments tend to come with fewer, if any, amenities. They however tend to be more spacious. Depending on how this sizing compares to more modern condos in the same area and how well the building and unit have been maintained, you may have to charge a comparable or lower rent. The layout of the unit and the number of rooms on offer will also matter. 

Pets

The majority of condos have a no-pet policy. There is however strong demand for housing that accommodates pets, more so where you have singles, retirees, and young families. Many enjoy the pleasure of pet ownership and will pay more for housing that allows this. However, providing amenities like pet day-care and dog walking trails comes at an added price. If your property can accommodate pets, you can likely charge more for the privilege. 

The price at which you will rent your condo will mostly be guided by what other properties of similar quality in the neighbourhood charge. It can be difficult for the owner of a self-managed property to conduct research and analysis on what this suitable rent should be and also find good tenants that can afford it. Engaging a property management company is a good way to access such expertise and have professionals take responsibility for vetting prospective tenants. 

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