For Those Who Rent Out Condos..

[buddhafly]

how long on average do your tenants stay...

and for how long on average does the place stay empty until a new tenant is found?

and lastly, what method do you use most to find tenants; real estate companies or advertise it yourself?

[spasticated]

<br />how long on average do your tenants stay... <br />and for how long on average does the place stay empty until a new tenant is found?<br />and lastly, what method do you use most to find tenants; real estate companies or advertise it yourself?<br /><br /><br />

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1. how longs a piece of string?

2. its never been empty (4 units)

3. use our own website dont waste time with useless agents.

[expatgaz]

In my experiance and from the condos I have are

1.Mostly long term.Only take short term over periods like Christmas and I charge accordingly for this period.

2.Hardly ever any down time,I once kept it empty for 4 months but I purposely did this for renovation.In the main no shortage of renters

3.Use all methods,Agents,sign outside,anything and see what comes along.

Some people have all manner of issues getting condos rented but Iam very lucky that my condo is in a great location.I have a fully paid up long term customer paying 1 year in advance at a time.

EPG.

[Irene]

how long on average do your tenants stay... One year to six years. On average, about two years.

and for how long on average does the place stay empty until a new tenant is found? A few weeks to one month for renovation. There was an exception of one unit having been vacant for one year due to bad management of that condo.

and lastly, what method do you use most to find tenants; real estate companies or advertise it yourself?EPG's answer coincides with my method (Use all methods,Agents,sign outside,anything and see what comes along and also all my condos are in great location).

In addition, I don't mind paying one-month brokerage fee to anyone. I don't bother to advertise for direct contacts to avoid fee payment. Hence I have built up a network of brokers to allow me to pick types of tenants and types of brokers I like to deal with. Another benefit is to know of some buying opportunities.

[typist]

how long on average do your tenants stay...

and for how long on average does the place stay empty until a new tenant is found?

and lastly, what method do you use most to find tenants; real estate companies or advertise it yourself?

tenants stay 6-12 months.

0-1 months until I find a new tenant.

own website - real estate companies are utterly useless (I "listed" a condo with 10-15 agents 2 years ago, and I have never heard from a single agent. The condo has been occupied with tenants I found myself).

[Serene]

I have looked at the idea of buying condos to rent out many times over last ten years.

The bottom line for me has always been the rental yield has never been sufficient to justify the risk/hassle etc

Most condos i have looked at never seem to give a gross yield above 6%(some significantly less so).Note I'm mainly refering to condos in prime areas(cbd)

Perhaps if any of the previous posters could tell us the secret of their success and what sort of yields they are aiming at etc etc .

Thanks

[Irene]

I have looked at the idea of buying condos to rent out many times over last ten years.

The bottom line for me has always been the rental yield has never been sufficient to justify the risk/hassle etc

Most condos i have looked at never seem to give a gross yield above 6%(some significantly less so).Note I'm mainly refering to condos in prime areas(cbd)

Perhaps if any of the previous posters could tell us the secret of their success and what sort of yields they are aiming at etc etc .

Thanks

First, I go for location and its prospect.

Second, whether there is a prospect of good management.

Third, find out about current rental per M2 (don't take your info from the newspapers articles but rely on the classified ads).

Fourth, anything not less than 5% gross yield is acceptable. (Current interest income is at 2-3%).

Fifth, one has to be comfortable with continuous tenancy otherwise one could end up in no yield but maintenance expenses. Hence, Central District is a comfort. My secret is to see that location is next to or near to mass transit stations, supermarkets, and a park. With this, the chance of not finding tenants would be reduced.

In sum, if I am right with all that evaluation, my yearly investment income is better than fixed interest income and with inflation and higher cost of constructions and EIA (environment) requirements, and good prospect of growth in the city, I view my chance of increasing my family wealth should be good. Based on my past experiences, this has been so. But I don't know about the current prospect, whether I have missed some important points that may sink my evaluation.

[spasticated]

Greater than 10% no Im not kidding, several reasons , I bought when the baht was strong ie 72 baht to the £, low priced studios but reasonabley well known construction companies, make sure you get on the managemant team or in my case my wife to know everything thats going on and question everything, they have monthly meetings more if necessary . If you think you can sit back and do nothing you will lose money.

[spasticated]

There has been an explosion in "letting agencies" lets face it Thais with little capital to invest in condos seem to be doing this or Farangs who cant really work etc I ofetn e mail them and ask about condos and have yet to have in many cases any response at all. They like to also copy photos off my website but thats ok as I then mail them and send them my webpage with my updated link slagging them off which seems to do the trick.

Once they have had your money forget any help at all.

I service my customers 24hours a day, if they call me at 3 am having lost keys I will be there in the next 20 minutes to get them in . Offer a service is my policy price is not so relevant.

My units cost 1.2 million my rental is minimum 14000 baht per month per unit + utilities and service charge on top of that(12% return). I studied which units the majority of people wanted and studios where I am was the correct thing to buy. rental of 2 bed units was a much smaller market and much lower return.

Do your homework like Irene says see what other ads are saying then get off your backside and go and look at these rooms also, whats their furniture like many have tasteless plastic sofas plastic flowers and an "old master" painting on the wall, if they stuck a few ceramic ducks up it would look ideal !!!!

Its not difficult to get customers IF you are there. MY wife does it all Im not here.

Your only real worry is long term maintenance and huge downturn in international travel both of which DO worry me.

[briley]

The best way to get tenants is from the condo front office. Most condos run a management service and get the tenants from walk in requests. A good building will rent out a unit in days.

[spasticated]

<br />The best way to get tenants is from the condo front office. Most condos run a management service and get the tenants from walk in requests. A good building will rent out a unit in days.<br /><br />

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In my opinion this is not correct, I know of people at my site doing this and in 6 months the niti office has not found them a tenant they simply do not promote them enough, the best way is to do it yourself.

[Moonfruit]

The best way to get tenants is from the condo front office. Most condos run a management service and get the tenants from walk in requests. A good building will rent out a unit in days.

Simply not true. Front offices overcharge to line their pockets. Indeed, in over 60% of cases, they really DO NOT act in the best interest of unit owners. It really is up to the management company. I went through an agent to find me a place in a building in Soi 39 in Bangkok. They got me the same room 6,000THb per month cheaper than the office wanted. The office said they were full. Obviously not true as i lived opposite the place at the time.