Renting out a townhouse. What to watch out for.

[DrJack54]

Looking for advice on how to rent out a townhouse. So recently purchased townhouse just finished bit of makeover etc.

Just to give full picture.....the townhouse is in my Thai partner's name and indeed I gifted her the townhouse. She (via using agent from facebook) secured a tenant instantly. The agent is just a 'tenant finder'. Does not do ongoing management. She does provide the contract (lease).

So my gf is currently changing the name on the utilities from previous owners name to hers.

I have zero experience or real estate management etc in Thailand however use property managers in Oz. Very different it seems. With rentals in Oz the utilities are in tenants name. 

Any advice regarding this aspect along with obtaining and using property manager greatly appreciated. Also any pitfalls to be aware of.

This was never a money making exercise. Mention that so that my questions won't be deflected into "why did you buy a townhouse" etc.

Thanks

 

[worgeordie]

You are lucky to find tenant quickly, can your G/f not manage it herself ?

as doubt you will get value from a property management, if you can find

one, she should know an electrician, plumber, and a handyman,  just incase

you need repairs, the most important thing is that she keeps on top of

making sure the rent is paid on time, payment by bank transfer ,with SMS

when rent is deposited.

 

We are getting out of property rental now, its not is good as it used to be,

property prices are too high , regards returns,  good, any tenants harder to find,

as we only rent to Farangs , too many problems with Thai's over the years,

I do all the repairs ,maintenance myself and getting too old to mess about

with it now, been a landlord does not just mean collecting rents, it has its

headaches too, good luck on your venture.

regards Worgeordie

 

 

 

[madmen]

Have her speak to neighbors regarding who does the maintenance if it's in a block . As mentioned above rent is via bank transfer. The tenant can pay the electricity and water from the monthly invoice sent to your letter box 

[phantomfiddler]

Prepare for the worst and, if you have the slightest misgivings about the prospective tenant, keep looking. A bad tenant will cause more damage than the rent will cover, plus headaches beyond imagination ????

[RichardColeman]

10 minutes ago, phantomfiddler said:

A bad tenant will cause more damage than the rent will cover, plus headaches beyond imagination ????

My last tenant in the UK basically destroyed my house. Took me a year away from the wife to fix it all, replace windows and repaint it. Wasn't till he left I found all his presented documents were fake and that he had opened accounts in my name. 

 

Tenants are pot luck.

 

My current tenant is great and I agreed a deal with him that he pays 80% rent and 20% doing the house up. Works well for both of us as he's a carpenter and landscape gardener. He's put in new doors, flooring, drainage, cleared the garden, etc, he's current building a covered pergola. I get regular updates and photos. 

 

Problem now is I'm stuck in the UK in a bed and breakfast for a year and can't use my house or get back to the wife !

 

 

[RocketDog]

On 2/17/2021 at 10:36 AM, madmen said:

Have her speak to neighbors regarding who does the maintenance if it's in a block . As mentioned above rent is via bank transfer. The tenant can pay the electricity and water from the monthly invoice sent to your letter box 

If you've never had rental property be easy for an education. 

 

Depending on the tenant to pay the bills is problematic. He could take an exit one night leaving you owing the utility companies. How much would entirely depend on how much credit they would extend him, and I suspect that varies widely across the country. 

 

In America I put the electric in the tenants' name and am notified if bills are overdue. Having the water in my name gives me a level of control as living without water is very difficult. However, in most places in America it's illegal to cut off utilities on a non-paying tenant. If not true here then you have pretty high leverage at very low risk. 

 

Like most owners I've had rental property trashed by tenants and also had, as I do now, very good ones who stay for years and take good care of the property. In return I almost never raise their rent. One guy has lived in my property for over seven years and I've raised the rent only a total of 10%/month over that time. In the same period the property value has doubled while paying the morygage/insurance and turning a $800/month profit. The two renters in my duplex are so good I have managed it remotely for the entire seven years. I just verify bank deposits each month online. So it can work out wonderfully. 

 

I personally would not be willing to ever own rental property in the Kingdom. I really can't imagine it being easier here than in the states but I could be wrong of course. 

 

Good luck. 

 

[chrisandsu]

Maybe put something in the contract that you can come and inspect the property once every 3/ 6 months .