Is there a market to rent out unfurnished condos?

[hrrecruiter]

I have the opportunity to purchase a 2br, 70sqm condo in central Bangkok. Its direct from the developer and condo comes unfurnished. One option would be to rent out unfurnished, is there a market for this in Bangkok? In my country this is actually the standard practice, 1-2y contracts, but here I dont see as often.

 

Thank you

Edited March 27, 2019 by hrrecruiter

[Peterw42]

It would maybe come down to the block and the area. Can you get an idea of the existing/future residents, working ex-pats, young Thai professionals etc would probably want furnished. Older Thais or families would probably have their own things. I think the standard is furnished.

I agree, you dont often see the removalist truck moving a whole condo in Thailand. We moved out of wifes (owned) house in suburban bangkok and left all the furniture for incoming tenants, the condo we moved into was furnished.

The developer could maybe advise on the expected residents in the block and usually can do a furniture pack.

[jackdd]

I would just offer both options. A cheaper unfurnished rate and a higher furnished rate.

[1FinickyOne]

I would say a much smaller market as near every place is furnished... you would have to be appealing to a long stay tenant. 

[ThaiBunny]

I've occasionally seen unfurnished offered and there seems to be a substantial discount on unfurnished - much more than I would expect

[Farangwithaplan]

As others have said, why not offer the option? Thai people probably prefer the built ins. Some non Thais may not want the dinky 2 seater sofa and unmovable tv module, shoe cabinet and wardrobe fixed to a wall.

 

Washing machine and fridge might be good options, but again if you are looking for your first tenant, maybe you can make it clear you can offer a fully furnished / whitegoods offering or unfurnished offering.

 

Please let is know what you decide and how you get on. Would be interesting to know.

 

[mike324]

Majority of the folks who rent a one or two bed apartment have limited budgets, that is why most would want a furnish unit. 

[Lacessit]

The majority of tenants here will expect furnishing in a condo. The OP would need to budget 60K - 100K baht to furnish. I'm assuming the developer is providing the aircon.

[gunderhill]

23 hours ago, hrrecruiter said:

I have the opportunity

Struth!

[BKKBike09]

2 br 70 sq m is pretty small. IMO if it's new build then buying unfurnished (but including a/c units) is better than buying furnished by the developer. It will cost you around 100K to furnish (beds, mattresses, fridge, washing machine, chairs, tables, shelves, curtains etc) but at least you can decide what you want to buy rather than get whatever the developer gets the best deal on. I would also think that unfurnished is harder to let - for that type of property - than furnished, because it's the sort of condo a single person or young couple will want. Sometimes landlords prefer to let furnished because the rent can be split, I presume for tax purposes (if the income is declared), into X amount for 'rent' and Y amount for 'furnishings'.

 

More to the point: how much is it going to cost to buy and what rental do you need to make to make it worthwhile. It's very easy to buy condos in Bangkok, but don't expect a big capital gain. 70 sq m in Central Bangkok new build will be running easily 120-150,000 / sq m; to rent, 40-70K a month (this is a guess). Personally I think many new build condos in BKK now are way over-priced for what you get. Older buildings (15-20 years) are generally much better value, offering much more floor space for the same price. The build quality may also be better. 

 

It's also not easy finding tenants these days because there are so many options. I speak as someone who rents out a 43 sq m 1 br condo in Ekamai. Japanese tenants are the best to have, but they are very particular about which buildings suit them. Thai tenants, on the other hand ...

[hrrecruiter]

3 hours ago, BKKBike09 said:

It's also not easy finding tenants these days because there are so many options. I speak as someone who rents out a 43 sq m 1 br condo in Ekamai. Japanese tenants are the best to have, but they are very particular about which buildings suit them. Thai tenants, on the other hand ...

 

Thank you all for your feedback. I´ve been living in BKK for many years now and have a feel for the RE prices here, but would be a new experience for me to be a landlord, so at this point Im gathering as much information as possible. Appreciate all who took the time to answer this. 

[chrisandsu]

Just go to ikea . 

[CNXexpat]

For people they want to stay a short time in Thailand furnished condos are more interesting. For expats they want to live here for years unfurnished condos and houses are more interesting. 

 

I see so many ads of 10 million and more Baht houses and condos they are furnished, also new ones. I don´t understand. If I would spend so much money, I want to bring in my own taste, not the taste of somebody else. 

[smutcakes]

12 hours ago, CNXexpat said:

For people they want to stay a short time in Thailand furnished condos are more interesting. For expats they want to live here for years unfurnished condos and houses are more interesting. 

 

I see so many ads of 10 million and more Baht houses and condos they are furnished, also new ones. I don´t understand. If I would spend so much money, I want to bring in my own taste, not the taste of somebody else. 

I am currently fitting out my condo and the one thing i am surprised about is the sheer cost of doing it in anything half decent. Small bits and pieces are not to bad and can be sourced in IKEA and the alike,  but as soon as you want anything imported like the main pieces (beds, L Shape couch etc) the prices are really exorbitant. You can very quickly get yourself up to 10-20,000 THB per sqm and more.

[ThaiBunny]

14 minutes ago, smutcakes said:

I am currently fitting out my condo and the one thing i am surprised about is the sheer cost of doing it in anything half decent. Small bits and pieces are not to bad and can be sourced in IKEA and the alike,  but as soon as you want anything imported like the main pieces (beds, L Shape couch etc) the prices are really exorbitant. You can very quickly get yourself up to 10-20,000 THB per sqm and more.

That's exactly why most condos are rented out furnished - people can't afford to furnish for themselves

[Pattaya46]

On 4/11/2019 at 7:56 AM, ThaiBunny said:

On 4/11/2019 at 7:41 AM, smutcakes said:

// but as soon as you want anything imported like the main pieces (beds, L Shape couch etc) the prices are really exorbitant. You can very quickly get yourself up to 10-20,000 THB per sqm and more.

That's exactly why most condos are rented out furnished - people can't afford to furnish for themselves

Not a valid reason IMHO. How many people want or need an Imported Sofa for their condo?? Surely very very few!

As someone who recently search during 1 month to buy a sofa, I think that there are a lot of very decent ones at rather affordable price.

Problem I see with many condos for rent is that they have way too much furniture... If you want add a computer desk or a training bike, there is often not enough place left.

[alacrity]

On 4/11/2019 at 7:56 AM, ThaiBunny said:

That's exactly why most condos are rented out furnished - people can't afford to furnish for themselves

Many that rent just don't want the inconvenience of moving basic possessions. They prefer to transfer their personal items which tend to be less of a transportation issue.

Whether a property is furnished or unfurnished isn't really important so long as the charges reflect the status. The status will be a reflection of the attraction though. It all depends on your business model from when you decided to invest.

[DaRoadrunner]

Just don't rent it out to Thais.... nothing but trouble

[alacrity]

8 minutes ago, DaRoadrunner said:

Just don't rent it out to Thais.... nothing but trouble

Seems you've had some bad experience. Our business modal has been the converse of that. Worked out to be very successful too.

Probably a very different model to yours. We don't rent anything other than cement with porcelain and wooden accoutrements.

Success can depend upon where you realistically place yourself in the market-place. Then take organic growth from that success.

[wilcopops]

If I was renting, I'd want, unfurnished....the furniture put in condos is by and large atrocious and certainly at odds with my lifestyle.

There may be some lease laws that require minimum furnishings.....

[DaRoadrunner]

13 minutes ago, wilcopops said:

the furniture put in condos is by and large atrocious

Atrocious also describes the standard of construction for many condos. Don't want one. Also insulted that we Farang (second class citizens in a third world country) are not allowed to buy a house.

[puukao]

50 minutes ago, alacrity said:

Success can depend upon where you realistically place yourself in the market-place. Then take organic growth from that success.

LOL.  Reads like something I would have said 20-years ago.  

 

Organically speaking, once growth is realized and profits from referrals improving exponentially, capture the momentum for optimal saturation!!!!!

[scorecard]

On 3/29/2019 at 1:07 AM, BKKBike09 said:

2 br 70 sq m is pretty small. IMO if it's new build then buying unfurnished (but including a/c units) is better than buying furnished by the developer. It will cost you around 100K to furnish (beds, mattresses, fridge, washing machine, chairs, tables, shelves, curtains etc) but at least you can decide what you want to buy rather than get whatever the developer gets the best deal on. I would also think that unfurnished is harder to let - for that type of property - than furnished, because it's the sort of condo a single person or young couple will want. Sometimes landlords prefer to let furnished because the rent can be split, I presume for tax purposes (if the income is declared), into X amount for 'rent' and Y amount for 'furnishings'.

 

More to the point: how much is it going to cost to buy and what rental do you need to make to make it worthwhile. It's very easy to buy condos in Bangkok, but don't expect a big capital gain. 70 sq m in Central Bangkok new build will be running easily 120-150,000 / sq m; to rent, 40-70K a month (this is a guess). Personally I think many new build condos in BKK now are way over-priced for what you get. Older buildings (15-20 years) are generally much better value, offering much more floor space for the same price. The build quality may also be better. 

 

It's also not easy finding tenants these days because there are so many options. I speak as someone who rents out a 43 sq m 1 br condo in Ekamai. Japanese tenants are the best to have, but they are very particular about which buildings suit them. Thai tenants, on the other hand ...

100,000 to furnish, well yes if the floor, ceiling and lighting is already installed.

 

 

[donim]

The best is, offer the room lightly furnished.

 

A bed, fridge and one chair with table.

 

Simple

[donim]

1 hour ago, DaRoadrunner said:

Just don't rent it out to Thais.... nothing but trouble

Then, owner, don't forget the TM30 and all the other TM's required.

 

[david555]

56 minutes ago, wilcopops said:

If I was renting, I'd want, unfurnished....the furniture put in condos is by and large atrocious and certainly at odds with my lifestyle.

There may be some lease laws that require minimum furnishings.....

I think in Pattaya for sure there would be a market for unfurnished condos , especially for long stayers who would like to make it look their "home ' , also it would make it more helpful for the owner to overcome difficult times , also less risk of changing tenants. Like poster up  said , also I saw very rare a condo with furniture  at my choice , some owners have a terrible choice …, I saw expensive condos with awful cheap furniture also , looks like they spend the last penny on the condo himself and just a very small limited budget left for the furniture 

About BKK condo this could be different as different type / rent money / condo prices …. I don't have any idea , but as a long timer 10 years here , I would prefer a empty condo against a furniture one if possible choice had it being there , just the basic shower /toilet , and the connections only for water /kitchen / washing machine , even not the closets would be needed by my choice...

I repeat this as a long stayer 10 years already , a 3 weeks millionaire is different thing ...

[donim]

25 minutes ago, scorecard said:

100,000 to furnish, well yes if the floor, ceiling and lighting is already installed.

I have noticed living here, floor and lighting is a part of the building and unfurnished places do have flooring and lights.

 

Renting here, I have had to pay at leaving for any damage on the floor and no working lights.

 

In my country, renting and when I leave the place I have to remove everything, also the lights and floor whatever it is carpets or laminate, even in good shape or newer then you can count to ten. Empty it is.

 

For both situation, it has to be the same as the first day of renting.

 

Rgds,

 

[david555]

29 minutes ago, scorecard said:

100,000 to furnish, well yes if the floor, ceiling and lighting is already installed.

 

 

Full everything from empty condo to western livable standard call it 200 000 , by this I count A.C. Water heather , Flat screen , kitchen fridge ….curtains  name it   ALL even cups pots pans fork knives , a total outset 

[uhuh]

Yes there is a market. 

It is not unusual,  either.

The discount is very substantial, almost 50%