Rental Home Search and Real Estate Agents

[dsmiththailand]

Hi All,

Newly retired couple to Pattaya.  We are currently looking for a long term home rental (willing to sign up a 5 year rental contract) and wondering any tips and tricks any local expats can share with us in looking for a rental home.  Our perfect home would be a newer 3 bedroom/2 bath home with private pool, in a location walking distance to a few coffee shops and restaurants, in a secured guarded community which our budget can go up to 30,000baht per month.

A few questions that we have are as follows:

(1) If working with an agent, how does the agent make their money? do we pay a commission or is that the owner of the home?

(2) If we find a home from a web search that is being listed by multiple different rental agencies, is there a way for us to find out who the home owner is so we can directly communicate with the home owner? 

(3) From what i can read online, it seems 2 months deposit and one month rental is standard now. Is that correct?  If not, what is the base way to negoitate only 1 month deposit with the agent?

(4) When negoiating with the agent to have the owner lower the monthly rental price, how can i confirm the agent is actually trying to get the price lower versus just telling me the owner is not willing to lower the rent?  Just worried the agent may not want the rental rate lower as it may effect their commission.

 

Thanks for any advice provided.

[Etaoin Shrdlu]

Based upon my experience as a landlord, I would offer the following:

 

1) The agent is the representative of the owner in most cases and the agreement between the owner and agent stipulates how the agent will be compensated. Since the tenant is not party to that agreement, the tenant is not normally responsible for compensating the agent.

 

2) I prefer meeting prospective tenants, usually when the property is shown. Agents won't perform much due diligence on prospective tenants, so I like to meet them myself. I have been willing to discuss terms with the prospective tenant in the agent's presence. The agent should not object to such a meeting, but would probably be wary of this occurring in their absence. The agent's presence in such discussions may also be of benefit to you as well.

 

3) Since the agent's commission is typically the equivalent of one month's rent, offering only one month as security deposit essentially means the landlord has no security deposit. You might offer to pay the agent's fee in lieu of giving the landlord the second month's rent and see if that works. But if the owner has a written agreement with the agent to pay the commission, the owner may not wish to do this as he would be in breach of contract if he did not pay.

 

4) The agent won't get any commission if you walk away from the deal, so getting the deal done at a slightly lower commission should be preferable to no commission at all. 

 

I know you did not ask, but you might wish to rent on an annual basis. You may change your mind and want to move, so don't tie yourself up. Technically, a lease agreement of longer than three years needs to be registered with the Land Office and there is a fee involved.

 

I'm sure others will offer additional advice and point out any deficiencies in what I've said above.

 

Good luck.

[gk10012001]

Just my two cents from 15 visits there over the last 17 years.  Do NOT put down a huge deposit. If they demand it, then walk away.  I caution against a long term lease as you mentioned 5 years.  Things change.  I would not do any longer than a one year lease.  I highly recommend you keep some options open when committing to anything long term in Thailand.    As for commissions, you will rarely get the full story.  Simply smile and agree to pay what you think is fair.  Some rents and lease rates are pretty low right now.  I however, would not trust such a low rate being honored for 3 or 5 years, especially if Pattaya's situation improves.  I know you would have a contract at what might be a low price now and supposedly guaranteed for 5 years.  But temptations, pressures, etc.  can arise.  It is not unheard of to see things happen that induce a renter to move out. 

[WhiteBuffaloATM]

Never Rented Here. House Lease Owner. Do Consider Purchase. 

Five Years Rent at 30k monthly is 1.8 million baht.Ten Years =3.6 mill.

Seen Nice Family Houses Selling for 3-4 mill.baht

Or Foreigner Freehold Condo. Salable & Transferable Asset. No Lost Rent. 

So Many Rental Horror Stories here, mainly Lost Deposits and False Damage Claims……

however, some rental suggestions……. if you must :-

 

Select & Tour Areas to Find Individual Properties.

Make Direct Contact with Owners.

Developer Purchase or Rentals offer Best Maintenance / Common Area…..

Avoid All Agents (where possible)

Buyers Market.

Rent Unfurnished (Long Term).

Strictly Zero Deposit or Walk.

Pay Half the Asking Rent Fixed for Lease Period.

Pay Separate Utilities in your Name at Billed Cost.

Establish Common Area / Facilities Responsibilities

Use Lawyer for Rent Agreement.

Purchase & Install your Own Movable Furniture & Equipment 

Repair All Your Own Damage Yourself. Difficult to Cause Damage if Unfurnished.

All Other Damage Strictly By Owner at Owner Cost

Or if Owner uncooperative, arrange repairs yourself & deduct from rent.

Live There for One Month Trial before Signing Lease.

 

[JustAnotherHun]

14 minutes ago, WhiteBuffaloATM said:

Seen Nice Family Houses Selling for 3-4 mill.baht

 

 

I doubt you can find a quite good house for 3-4 million and if it would be in the middle of the nowhere far behind the dark side.

I would not "buy" a home that I cannot own. If you want own a property, buy a (more expensive) condo. 

30k for a rented home close to the city seems realistic to me if the expectations are not to high.

[thaiclan]

Be aware there are no zoning or planning laws in Pattaya.  I have heard many stories of people renting and buying only to find a karaoke, repair garage or something opening up next door or very near. If this happens there is nothing you can do about it other than move out. Same goes for plain old noisy neighbours or with noisy pets. If you are renting for 5 years it will cost you to break your contract.

Rent on a yearly basis at most.

[Will B Good]

Long term rent carries risks.

 

The landlord will not be too keen as they always foresee the rental value going up. They might demand a higher rent or increasing rent/rent review.

 

Once committed to five years you might find yourself next to the neighbors from hell (there are no shortage of them).

 

Personally I would not sign up for more than 12 months for anything, house or condo.

[jacko45k]

11 hours ago, thaiclan said:

Be aware there are no zoning or planning laws in Pattaya.  I have heard many stories of people renting and buying only to find a karaoke, repair garage or something opening up next door or very near. If this happens there is nothing you can do about it other than move out. Same goes for plain old noisy neighbours or with noisy pets. If you are renting for 5 years it will cost you to break your contract.

Rent on a yearly basis at most.

I think there are regulations about opening bars within a particular distance to schools, but like anything else it will happen. My worst nightmare would be a karaoke opening nearby, there is only one position for their volume dial!

[Gsxrnz]

1. Don't use an agent unless you want to pay commission and be unable to negotiate directly with the owner.

2. Online adverts are often out of date, as are agent's databases. A pure waste of time and money.

3. Get on Google Maps and find villages that are in the location you desire.  There are dozens of villages you will drive past unless you know they're there, so google is your friend.

4. Go to the village  - tell security you are looking to rent/buy. They will let you in to drive around and you will see many signs advertising sale/rent by owner.  The guard will usually call the village "camp mother" who is all-knowing and she will tell you about every house available. She will say "they want 40k, but They will accept 35k", knowing that they'd be happy with 30K, but if she can convince the owner she did them a favor she'll get a kickback.  This is Thailand.

5. Call the owner/s -  on the phone call quiz them to make sure they are the owner or the owners sister or whatever - don't have an agent come there. Best to call 3 or 4 in the same village if the house looks acceptable - this starts a bit of a price war and allows you to negotiate and compare bang for your bucks.

6. The Camp Mother will tell you (if asked) about the neighbors, the crazy Falang who lives down the road, the motorbike hooligan parties around the corner, or the fact that the village swimming pool is closed more often than it is open.

7. Don't pay more than two months rent as bond and try for one month.  Don't pay "rent in advance" - this seriously limits you from walking away if dissattisfied, and the Thai owner will think you are one crazy idiot for doing so.

8. Thais aren't impressed with a "5 year lease" offer.  They know you will either die, leave anyway, or the missus will kill you before the 5 years expires.  One year will satisfy them, but I'd recommend with starting off with a six month rental to make sure you can be happy there.

9.  Murphy's Law - you will think you got a good deal on the rent, and then find out the guy around the corner has a nicer house and is paying 20% less than you.  Live with it and cut a better deal after 6 months.

 

Good luck.