As we are entering the high season, many holiday homes and condominiums start to offer daily rents for tourists. Those who travel frequently or are real estate investors would see a growing number of daily rent properties. While daily rent for holiday homes is common in Thailand – a large number of them, whether one or two-storey, are located along the beach in Cha Am and Bang Saen – daily rent in condominiums is not that widespread and, hence, intrigues many to question its legitimacy.
The reason why daily rent condominiums receive more protests is because when there are daily rent practices in a condominium project, the existing residents would have to be around unfamiliar newcomers, and that significantly lowers the sense of security.
Remember: daily renters can also use the facilities and walk freely throughout the project. A greater population in a project also makes it difficult to maintain the security level – meanwhile holiday homes only occupy less than ten residents in general.
In Bangkok, daily rent in condominiums is even more unwelcome as the majority of residents are long-term dwellers. However, daily rent in condominiums is not that serious for most provincial tourist destinations. Tourist destinations where there are potential protests for daily rent in condominium projects are places with high real demand (residential demand, not demand for investment).
Chiang Mai is one of the examples where real demand is high in many projects. In one case, a protest against daily rent had forced the juristic office to form a new policy: fingerprint scanning for entries (to prevent daily rent practice as it is inconvenient for the room owners to scan their fingerprints daily for their tenants); as a consequence, they resumed the monthly rent practice.
Investors who aim to rent out properties in tourist destinations should take this information into concerns, especially if the property is not under the administration of the juristic person office. To list down what you need to concern before initiating daily rent investment in holiday homes and condominiums, follow these 14 rules.
14 Rules for Daily Rent Investment
1. Invest in the furnishing and embellish the room to have a hotel-like appearance would help drawing interests from the tenants and raise the rent price to a decent level.
2. In a project, there are a mixture of dwellers and investors – a large portion of dwellers could lead to a protest against daily rent practice.
3. In some projects where there’s no juristic person office to provide service, online media is the main channel for your room advertisement.
4. Popular beachfront destinations like Cha Am and Hua Hin has high demand for daily rents especially during weekends. Other tourist destinations like Khao Yai and Chiang Mai have high demand for daily rents during high season (October – February).
5. Concern about how you will hand the room key to the tenant.
6. Consider about cleaning expense: who will do it and by which method? how much is the cost per cleaning? Consider whether to add cleaning expense to the rent price, otherwise it would increase the initial cost and you would have to reassess the worth of this investment.
7. Who will prepare toiletries, towels, and other basic supplements for the tenants.
8. How many parking lots available for the tenants? Where should the tenants park if there are several cars? Who is responsible for the parking fee?
9. Beware if you hire a local agent to find tenants. Booking mistakes could occur if the agent has too many customers’ rooms at hands.
10. Find measures to prevent damages or loss of properties in your room.
11. Who is in charge for repair and maintenance, including all appliances in the room?
12. In case of black out or air-conditioner failure, how will you handle the problem? (In hotels there are plenty of rooms to switch, but for owners of condo units the number of room is limited)
13. If the tenants are dissatisfied with the room, they can write a review on the online media, which would discredit your reputation.
14. If you advertise your room on a reputable website, how will you overcome the language barrier if the interested customers could not speak English.
These fourteen pinpoints are just a summary of what daily rent investors need to consider. By using our information, if you are confident the investment is going to be profitable, don’t hesitate to start taking actions; but if the amount of risks seems to exceed the opportunity to succeed, a consideration should be taken thoroughly.
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