Short Term Rental In Koh Samui

[RnR747]

I work abroad but am looking to buy a 3 bed property in Koh Samui, with the intention of living there about 1 week a month, and renting it out to tourists via an agency the rest of the time.

Is this realistic?

Can the agencies take care of everything, so that this is a hands off investment?

What kind of return can one expect from the right property from short term rentals here?

I would appreciate some direction, i.e. links to similar threads, websites, names of agencies, basically anywhere I can find the answers to my many questions.

Many thanks

Rob

[Boater]

You will know probably be swapped with pm's by hungry agents ...

You haven't stated your budget , or what area of samui you are after ..?

But in a nut shell , maybe 5 % on short term , but the trouble is if you arecstaying there once a month , this could conflict guest stays , and create void periods

There arevsome great rental companies here , and a few agents

Pm me if you want some independent advise

[Tropicalevo]

Location, Location, Location. Also sea view and a pool are a must to make for easier renting.

The further away from the action - the lower the rent (all other things being equal).

I manage rental properties and the majority of my clients are staying for one month or longer - I rarely see 2 -3 week stays, but it could be that these are the only ones being sent to my by the agents!

If you can be flexible on when your one week per month is - it could work out nicely. If you are working 3 weeks on and one week off - more difficult - and thus lower returns.

As Boater said - there are some very good rental companies here. Some are useless (ie less than professional - unable to organise a booze up in a brewery springs to mind) - very few are dodgy.

Some of the rental companies have their own pet developments. Maybe if you were to buy one of these, they would then be more keen to rent/manage it for you.

Check out the rental company charges carefully - not just the management fee- but also how much do they charge for paying utilities, gardening, replacing glasses/towels etc etc

Good luck

[notmyself]

3 weeks in the month is going to be a stumbling block.

[RnR747]

I get 8 consecutive off days per month, which I have to request at the beginning of the month before. IE at the beginning of september I need to request my week off in October. I can also choose to combine the last 8 days of one month with the first 8 days of the next. And no doubt there will be some months when I choose not to come to KS if I need to visit somewhere else. So yes I can be flexible around the bookings up to a point.

Separate question - are the flights between KS and bkk normally quite full?

Couldn't agree more about location. I am looking for somewhere in the NE, with pool large enough for exercise, great view and close to shops, restaurants etc, fully managed and good secure. I haven't decided yet between condo or villa, depends on practicality etc. Budget depends on how much I sell another property for and whether or not finance is available?

Edited October 5, 2012 by RnR747

[johnnyk]

RnR747,

I rent my house in another part of Thailand and I'm happy with 5% net net ROI (return on investment).

I use a local letting agency and a big U.K. website for reservations. Each one has a booking calendar so I block out my time and take what rentals I get from the rest with about a 50-50 split between 2-week and longer rentals.

I don't look to make money but rather to meet the ongoing costs like tax, accounting fees, repairs, improvements and in a good year get my air ticket, too.

The majority of visitors come to Thailand for 2-3 weeks so two-weekers aren't hard to get but IMO it's not worth it to rent less than 2 weeks because of cleaning/maintenance costs, rental commissions and the extra wear and tear on the house and furniture.

In your case, if I may suggest, I think I would block off my dates and shoot for a 2-weeker every month and bonus if you get a 3-weeker.

Chok dee.

Edited October 6, 2012 by johnnyk

[hilltribesamui]

hi there

manage rental properties myself and only do short term rentals

location is your biggest asset

most tourists visit an average of 10 days

there's lots of choices out there in the short term market and you are competing with hotels and resorts

so returns are dropping from say 5 years ago

check rental agencies carefully as their commissions can be a killer

my property owners advertise mainly themselves privately

contact me dorectly if you want details

cheers

[johnnyk]

hi there

manage rental properties myself and only do short term rentals

location is your biggest asset

most tourists visit an average of 10 days

there's lots of choices out there in the short term market and you are competing with hotels and resorts

so returns are dropping from say 5 years ago

check rental agencies carefully as their commissions can be a killer

my property owners advertise mainly themselves privately

contact me dorectly if you want details

cheers

I tend to see the short term market a littlke differently. After the first trip or two I think many short term visitors catch on that renting a house or apartment is a better deal than a hotel or resort. Daily cost is generally lower, you can get a pool and you don't have to go out for every meal, especially brekkie when people often don't want to get dressed or deal with servers etc.

[Samui Coconut]

3 weeks in the month is going to be a stumbling block.

Makes it more difficult for sure, most of our guests rent long term, usually by the year......Short term would mean less money, irregular income and a lot of moving in and out etc....

[RnR747]

Thanks all, for your advice. Some helpful comments there.