Renting Out A House On An Annual Basis

[JAS21]

This is the 3rd time that I have tried to post this !!. 1st time disappeared into thin air!!!! Same 2nd time ... then I learnt to save to word before posting.

We,well my wife will rent out our, well her house. One option is .................

To rent direct to a reputable company. She will also provide all services ....
water/drinking water/electric/gas/internet/ubc/Air Conmaintenance/maid/gardener etc etc This service fee will be capped.

Now the company will withhold 3% of the rent (with holding tax) she will have to pay personal tax on the rental income. I read that there is a tax allowance of between 10% and 30% ... who/how decides this percentage?

Also can she not declare the income in the 1st year but declare two years the next year ... what will be the fine?

Also there will be no tax on the Services Provided, even if a profit is made? thanks

Edited April 10, 2013 by JAS21

[BlackPuddingBertha]

"She will also provide all services .... water/drinking water/electric/gas/internet/ubc/Air Conmaintenance/maid/gardener etc etc This service fee will be capped."

Just wondering what happens when the tenant leaves all the aircon units on and all the windows and doors open? I had friends in Europe who rented out a rather nice farmhouse and their American tenants did exactly this. They could have bought a decent car for that month's electricity bill.

[rgs2001uk]

She will also provide all services ....

water/drinking water/electric/gas/internet/ubc/Air Conmaintenance/maid/gardener etc etc This service fee will be capped.

Wonder how she would get on trying to rent out a house with no water or electric air con etc.

Why the heck would I need a maid/gardener?

What would the sevice fee be capped at?

Water lets say, 200 baht per month.

Electric, 3,000 baht per month.

Gas, a 300 baht bottle lasts about 3-4 months.

Internet, 700 baht per month.

True, 2,000 baht per month.

A/c maintenance, lets say 500 baht per unit per year, 2 units 1,000 baht per year.

Total just over 6k per month.

Does your wife have house insurance?

[JAS21]

"She will also provide all services .... water/drinking water/electric/gas/internet/ubc/Air Conmaintenance/maid/gardener etc etc This service fee will be capped."

Just wondering what happens when the tenant leaves all the aircon units on and all the windows and doors open? I had friends in Europe who rented out a rather nice farmhouse and their American tenants did exactly this. They could have bought a decent car for that month's electricity bill.

O Dear ... you completely mis-understand

Do you actually know the answer to my question?

"She will also provide all services .... water/drinking water/electric/gas/internet/ubc/Air Conmaintenance/maid/gardener etc etc This service fee will be capped."

Just wondering what happens when the tenant leaves all the aircon units on and all the windows and doors open? I had friends in Europe who rented out a rather nice farmhouse and their American tenants did exactly this. They could have bought a decent car for that month's electricity bill.

[soi41]

Rentalincome is taxed with a flat rate of 12.5%, not related to income. Dare I say that most landlords tend to "forget" to declare their rental income to the taxpeople. If caught, a small fine.

As for the 3% withholding, the tenant are not an agent for the revenue department, so IMO BS. Doesn't matter how reputable the company is, at least 1 months rent as deposit upfront together with the rent, and to avoid future complications let them pay their own utilities and only charge for the other services provided.

[JAS21]

She will also provide all services ....

water/drinking water/electric/gas/internet/ubc/Air Conmaintenance/maid/gardener etc etc This service fee will be capped.

Wonder how she would get on trying to rent out a house with no water or electric air con etc.

Why the heck would I need a maid/gardener?

What would the sevice fee be capped at?

Water lets say, 200 baht per month.

Electric, 3,000 baht per month.

Gas, a 300 baht bottle lasts about 3-4 months.

Internet, 700 baht per month.

True, 2,000 baht per month.

A/c maintenance, lets say 500 baht per unit per year, 2 units 1,000 baht per year.

Total just over 6k per month.

Does your wife have house insurance?

The cap has been suggested to be somewhere around 30K, so she should make a few baht profit at that.

I was thinking more of Air Con service twice a year, 500Baht a time might be OK ... there are six of those

Any idea about the answer to my questions please?

[JAS21]

Rentalincome is taxed with a flat rate of 12.5%, not related to income. Dare I say that most landlords tend to "forget" to declare their rental income to the taxpeople. If caught, a small fine.

As for the 3% withholding, the tenant are not an agent for the revenue department, so IMO BS. Doesn't matter how reputable the company is, at least 1 months rent as deposit upfront together with the rent, and to avoid future complications let them pay their own utilities and only charge for the other services provided.

Thanks .... I've seen that 12.5% and also this http://www.rd.go.th/publish/6045.0.html . It's not clear cut to me. Actually I know a guy who works for the Tax Dept ... met him on an Isuzu away weekend last year... guess I'll have to ask him ... he did offer to help anytime. I think that if a company rents the property then there is with holding tax. Also the amount appears to be different for Thais and foreigners

[rgs2001uk]

She will also provide all services ....

water/drinking water/electric/gas/internet/ubc/Air Conmaintenance/maid/gardener etc etc This service fee will be capped.

Wonder how she would get on trying to rent out a house with no water or electric air con etc.

Why the heck would I need a maid/gardener?

What would the sevice fee be capped at?

Water lets say, 200 baht per month.

Electric, 3,000 baht per month.

Gas, a 300 baht bottle lasts about 3-4 months.

Internet, 700 baht per month.

True, 2,000 baht per month.

A/c maintenance, lets say 500 baht per unit per year, 2 units 1,000 baht per year.

Total just over 6k per month.

Does your wife have house insurance?

The cap has been suggested to be somewhere around 30K, so she should make a few baht profit at that.

I was thinking more of Air Con service twice a year, 500Baht a time might be OK ... there are six of those

Any idea about the answer to my questions please?

I am not trying to be funny, but,

The cap has been suggested to be somewhere around 30K

Are you saying you want a service charge of 30k per month on top of the monthly rental?

Ok a/c now up to 3k per year, depending on usage.

Poster #5 has already answered your question ref tax.

Do you have a rental contract drawn up, sanyaa chao in Thai?

[JAS21]

She will also provide all services ....

water/drinking water/electric/gas/internet/ubc/Air Conmaintenance/maid/gardener etc etc This service fee will be capped.

Wonder how she would get on trying to rent out a house with no water or electric air con etc.

Why the heck would I need a maid/gardener?

What would the sevice fee be capped at?

Water lets say, 200 baht per month.

Electric, 3,000 baht per month.

Gas, a 300 baht bottle lasts about 3-4 months.

Internet, 700 baht per month.

True, 2,000 baht per month.

A/c maintenance, lets say 500 baht per unit per year, 2 units 1,000 baht per year.

Total just over 6k per month.

Does your wife have house insurance?

The cap has been suggested to be somewhere around 30K, so she should make a few baht profit at that.

I was thinking more of Air Con service twice a year, 500Baht a time might be OK ... there are six of those

Any idea about the answer to my questions please?

I am not trying to be funny, but,

The cap has been suggested to be somewhere around 30K

Are you saying you want a service charge of 30k per month on top of the monthly rental?

Ok a/c now up to 3k per year, depending on usage.

Poster #5 has already answered your question ref tax.

Do you have a rental contract drawn up, sanyaa chao in Thai?

No, nor am I

The guy who deals with rentals to companies and I know what the rents are where he deals most with and his company deals with quite a few... 'kin expensive! He came up with that sort of figure. When you factor in 10000Baht for a maid, then the garden maintenance and quite a lot for electric it soon adds up and of course you need to add a bit. I rent out a couple of properties in the UK so have some idea of what should be in a contract. By the way my electric bill was close on 4K last month and that's not using air con a lot. So easy to double or even treble that.

I have only seen his the rental contract for private rental and not to a company ... one is on its way though.

I'm just trying to decide whether to go the company route or insist on a non-company rental. The only reason we will rent out the place is to get out of BK area for a few years ... gee is it getting busy here and hot!!