Renting property how does it work?

[parafareno]

I am planning to buy a condo in pattaya. It seems a good idea to me. 

It will be for me predominately. But maybe I will rent it out. So how does this renting out work?

If I am not there. How do you charge people? Do you need to pay taxes?

I am planning to buy 50 sq meter condo in jomtien probably. 

I know market is saturated like hell so probably I will not even get a tenant.

[CharlieH]

MOVED to real estate forum

[KhunLA]

Do you live in Patts now ?

 

Make sure anything you buy, you are allowed to rent, short or long term.  Short term is usually a bit iffy.  Taxes, UP2U if you report / declare income.

 

Any lease 3 yrs or more, has to be registered and taxes will be collected.

[parafareno]

1 minute ago, KhunLA said:

Do you live in Patts now ?

 

Make sure anything you buy, you are allowed to rent, short or long term.  Short term is usually a bit iffy.  Taxes, UP2U if you report / declare income.

 

Any lease 3 yrs or more, has to be registered and taxes will be collected.

no i am coiming back in october for 6 months....this will be my regular life like before covid....

what do you mean if I can rent? If the condo allows that? It will be my condo, why I would not be allowed to rent?

If I rent it for 6 month per year, how to pay taxes and how much?

[KhunLA]

2 minutes ago, parafareno said:

no i am coiming back in october for 6 months....this will be my regular life like before covid....

what do you mean if I can rent? If the condo allows that? It will be my condo, why I would not be allowed to rent?

If I rent it for 6 month per year, how to pay taxes and how much?

Read the not so fine print, when buying, as some condos do not allow renting short term.  'Short term' ... can be different at different complexes.

 

How to pay on lease less than 3 yrs, I haven't a clue.  Register a lease, and taxes will collected at that time.

[bkk6060]

Taxes? Jeez, the people I know who are renting their places out do nothing.  Just have the renter send the money into their bank account each month.

A short term rental is usually considered less then 30 days. 

There are lease agreements you can download online.  You will have to decide how long and the terms.

[FriendlyFarang]

13 minutes ago, KhunLA said:

Read the not so fine print, when buying, as some condos do not allow renting short term.  'Short term' ... can be different at different complexes.

No condo allows short term (less than 30 day rental), simply because it's illegal. Some might turn a blind eye though.

More than 30 days is always allowed.

[CharlieH]

Just because you bought it doesnt mean you can do what you like ! There will be a building management that you contribute to that makes any decisions, like what you can and cant do, whether you have pets etc.

[NanLaew]

21 minutes ago, FriendlyFarang said:

No condo allows short term (less than 30 day rental), simply because it's illegal. Some might turn a blind eye though.

More than 30 days is always allowed.

And there's also insurance to think about as a homeowner. If there's an accident in the unit while it is being 'illegally' rented out, will any insurance be voided?

[tomazbodner]

1 hour ago, bkk6060 said:

Taxes? Jeez, the people I know who are renting their places out do nothing.  Just have the renter send the money into their bank account each month.

A short term rental is usually considered less then 30 days. 

There are lease agreements you can download online.  You will have to decide how long and the terms.

I know someone who got reported by a jealous neighbour, had a tax department visit where tenant showed contract and how many years they stayed there - owner got slammed with over 3 million baht in back taxes and fines. That happened in Chonburi province. To a Thai.

Edited June 26, 2022 by tomazbodner
now -> know

[KhunLA]

26 minutes ago, tomazbodner said:

I now someone who got reported by a jealous neighbour, had a tax department visit where tenant showed contract and how many years they stayed there - owner got slammed with over 3 million baht in back taxes and fines. That happened in Chonburi province. To a Thai.

3m back taxes ... I'm finding that really hard to believe.  Must be one really expensive rental, with a really long lease.

 

Rent would have to be over 55k a month, and lease for 30 yrs to get hit with a 3m tax bill @ 15% 

Edited June 26, 2022 by KhunLA

[tomazbodner]

54 minutes ago, parafareno said:

what do you mean if I can rent? If the condo allows that? It will be my condo, why I would not be allowed to rent?

If I rent it for 6 month per year, how to pay taxes and how much?

Rent below 30 days (a'la AirBnB) is illegal as it competes with hotels. There may be large posters at the condo entrances stating just that. Neighbours could report you and get police to harass your tenants, drag them to police station, etc. Google up stories from C condo in Ekkamai to see how that looks like.

 

Long term it is allowed to rent but there could be restrictions put in place by the condo committee. In general the focus would be on not allowing any activities that would degrade the value of the units of condo owners. Our condo has smoking on balconies banned with fine for every report.

 

On the flip side, if it is a longer term rental, juristic office handles everything. They check the person in, do the reporting, arrange cleaning, room inspection, handle payment, even advertise property and show it to potential tenants. AFAIK they don't charge for that.

 

Finally on taxes - as you're private owner, you were supposed to add the income from rent into your annual tax report under other earnings, then pay tax on it per progressive scale. Given the size of unit, if that was only income you had, you'd not reach any tax even you rented it out the whole year. But I don't know what other complications that can bring as you would have income in Thailand... obviously you would need tax ID but would there be any other consequences? Don't know.

[tomazbodner]

4 minutes ago, KhunLA said:

3m back taxes ... I'm finding that really hard to believe.  Must be one really expensive rental, with a really long lease.

I know it's a 2 storey, 4 bedroom detached house with a pool outside, but don't know the rest of details. It was a lease over many years. I don't know how much of that was actual taxes, and what was fines and interest.

 

The point however was that while probably most rent places out without declaring income, all it takes is one upset or jealous neighbour to give you a lot of trouble with authorities.

[1FinickyOne]

First, you throw out the bed and bedding - then the couch... you can mop the floor.