Rentals: List Price V Owners Price?

[MRaina]

A real estate company has listed a price for monthly rental of a vacation home,

and the property admin has listed a price that is nearly 30% higher,

and the owner has given a price that is nearly double the original.

There may have been some upgrades since the property was first listed, but who would have the correct price?

Are listed prices here supposed to be legitimate, as in the US?

[hhgz]

Thailand is just like every where else. If the price doesn't suit you, make an offer.

[spacefruit]

Are listed prices here supposed to be legitimate, as in the US?

Get your helmet on!

You will be in for a very rough ride if you think anything, ANYTHING, is legitmate as in the US!

Good luck, its fun.

[Boater]

where you refering to a similar body as RICS in the UK who Value houses ? .......

but in thailand it is a case of ' make your own price up '

no official bodies here i am afraid

[torrenova]

I've rented condos for 10k which were originally on for 20k+

I've rented houses for less than 50% of the asking price as well.

Short term rental is like an aircraft seat or a hotel room. When the plane takes off or it strikes midnight, it is impossible to get any revenue for the empty seat or the unsold room.

To give an example in the real world. I am interested in a rental which they want 350 (doesn't matter which currency). The previous tenants moved out because they could no longer afford it. I want to pay 200. So for 6 months, the owner could guarantee themselves 26*200=5200. If they accept 300 which they will have to do or less, and the property is vacant for 2 months, they get only 17*300=5100 and there is no guarantee they could get this rate at all. They might have to come down to 250 anf then only get 4 months meaning the offer of 200 is a better proposition for the 6 months.

[PattayaParent]

The list price may be either the highest price for short term rentals or the lowest price for long term rentals.

In the end it is up to the owner what price he accepts.

Torrenova's maths is great in theory but Thai landlords don't see it that way, to them they are losing 150 a month by renting it for 200 vs. 350 rather than gaining 200 a month vs. 0.

Edited April 9, 2009 by PattayaParent

[Asianrider]

If you don't ask you don't get ! Make an offer if you're interested.

[torrenova]

The list price may be either the highest price for short term rentals or the lowest price for long term rentals.

In the end it is up to the owner what price he accepts.

Torrenova's maths is great in theory but Thai landlords don't see it that way, to them they are losing 150 a month by renting it for 200 vs. 350 rather than gaining 200 a month vs. 0.

I agree that Thai landlords are usually stupid in this regard and I largely put that down to them never having actually built up their businesses because they never would have acting in that manner. Largely inherited or "fell from the sky" sort of money, like the police and the military top brass !

In my example, I do not really expect to get it for 200 but you can quickly do a simple spreadsheet in Excel which gives you all the possible scenarios. I am considering whether it is still good value to me at 250 which I equate to roughly:

Old market price - 350

New realistic market price - 300

Use of Agent - 10% (no agent with me)

Downtime (not using me) over 6 months - 1 month

So total from me is 26*200=5200

Me at 250=250*26=6500

Projected total=300*21*90%=5670

As the difference is only 470, about 8% at the 200 level and ahead at 250 by 830 or nearly 15% I think it has a great deal of merit. Even withdrawing an agent at 250 = 300*21=6300 v 250*26=6500 which is roughly par.

I would love to be able to wait 2 or 3 months but I cannot as I need to have this up and running by the beginning of May but even so, if the landlord has not secured another offer by the last week of April, I guess we'll be discussing the above scenarios.

What would I do if the shoe was on the other foot and I was the landlord ? (and I have been a landlord for years). I would realise that 350 was in a different market and holding out for that is stupid. 300 would be nice but if I have downtime, then I lose. I probably would not take 200 but at 250, I think I would have to give it serious consideration for 6 months with a renegotiation at that point.

[MRaina]

Thanks.

Actually the owner is from the UK, and the home is in Thailand. The home is listed on a real estate site as 100k per month, by the admin for the property location as 130k per month (which is about 25% off the daily rate for the property), and the owner has given a price of 180k per month (straight daily rate only). I'm not sure whether negotiating for a property in this range would be appropriate, but I wonder why the large discrepancy in the prices.

The real estate site has said to contact the owner now, because they know that I talked to him after I asked about the discrepancy in price (I thought his contact was an agent at first).

If I had not contacted the owner, would the real estate company give the listed base monthly price?

Is it generally better to deal with the agent, or the owner for rental properties? Who gives the straightest price?