Renting Studios

[Bronx]

 

I have been coming to Thailand for some years now and noticed that there are some reasonably priced Studio / Condos available.
I am now retired and considering a move to Chiang Mai on a more permanent basis.

For many years I operated a small rental set up in the UK as a sideline which was always worthwhile - but for Thailand I would be very much a beginner.

I would only be interested in Freeholds but of course the real crunch would be is there any sort of rental market here plus as a Foreigner would there be anything approaching a level playing field?
By that I do not mean all the general hassle in rental - I am pretty much aware of that aspect - my concern is more with how it is viewed by the powers that be.

Is there any form of grouping that one could become part of?
I would consider it as a means of contributing a little extra to income rather than as a business.

Comments welcome - even if a 'Don't go there'.

 

Thnxs Bronx

[iancnx]

I have done this for 10 years now and the yields are good. Being an expat, you are more likely to attract expat tenants in my experience.  I have a unit for sale in CM in anticipation of my return to UK.  Take a look at my posting history for the detail.

[sfokevin]

To make it work you need to be here and manage the property and find your own tenants - The Agents here are very unprofessional... I also have noted that the internet has changed the way one gets tenants and has shortened the lease cycle... Many condo owners have gone to renting their condos thru Airbnb type websites which changes the whole dynamic of who you rent to and how long people stay and how much time you must devote to the management of the property...  

[moe666]

Be careful ow you do this as a work permit is required, I know we do it all of the time. I know someone who got busted for renting out condos, had to transfer everything to wifes name in order to avoid a big hassel. 

 

But anything is possible to do as long as you donot ruffle any feathers

[elektrified]

While looking for a nice place for a friend to stay when he comes next month, I checked out a few places on Airbnb. At one place the guy that was fronting for the supposed falang owner told me that a few months earlier while the falang was offering the place, a team of about 6 police showed up and busted the falang for operating a business without the proper papers, permits, etc. He/she was arrested, taken into custody, the bank books, mobiles, and computers were taken as evidence. Don't know what the outcome was but obviously he/she is out of the picture now/laying low.

[balo]

I would be careful doing this in CM , they are getting more strict with foreigners trying to earn money from rentals.  

Much easier to get away with it in Pattaya or Hua Hin . 

 

[Dipterocarp]

The only legal way for the average  "retired"  expat to do this is thru an agency. 

Income from rentals attracts tax. The real estate Agency does the "work", and takes their cut.

of your income.  Somebody also has to report arrivals of Aliens to immigration within 24 hours or face fines.

Air BnB is a great idea but basically illegal and not allowed by many Condos Rules.

 

Edited December 29, 2016 by Dipterocarp

[Dante99]

9 hours ago, elektrified said:

 At one place the guy that was fronting for the supposed falang owner told me that a few months earlier while the falang was offering the place, a team of about 6 police showed up and busted the falang for operating a business without the proper papers, permits, etc. 

Some places require a business license/permit for the owner to rent a property, do not know if this is the case in CM but they probably could find/interpret some law to make it so.

[daoyai]

... recently they have been under pressure from hotels to stop short time rentals of condos though it still is a common practice.

[Bronx]

Hello Everybody,

 

So many responses and all really useful and full of relevant info - so will just use this as a general 'round robin' to say thanks to all.

 

All in all it has highlighted exactly the sort of 'traps'  I thought might be there - in reality of course it is also happening in Europe - especially the Med region ref the Hotels 'protecting' their businesses etc. even against Air BnB users it is getting a bit spiteful.

 

I guess the trouble starts when all want a slice of the cake and the cake is not large enough for all.

 

I did have general concerns because of the number of hotels big and small that seem to be springing up here.

 

I think probably therefore not worth the while in my case - will just settle for a place we can use ourselves.

 

Thnxs again and all best for New Year.

[logon1]

13 hours ago, balo said:

I would be careful doing this in CM , they are getting more strict with foreigners trying to earn money from rentals.  

Much easier to get away with it in Pattaya or Hua Hin . 

 

interesting response balo saying that it's easier in HH or Pattaya. Can you document that sweeping statement? 

[NancyL]

Post no. 7 has much wisdom.  As a newbie, I suggest you come and get yourself settled and get the lay of the land.  Contrary to want some said, there are a few professional rental agents in town and once you're here for a time, you'll get to know them.  They can advise you as to which buildings offer good return for your investment.  As a foreigner, it's a very good idea to work thru an agent (or Thai wife, but this isn't a good reason to get married ) and be sure to report income earned within Thailand on a Thai income tax return.  Thai income tax returns are fairly easy to file -- much easier and less complicated than in my home country, esp. if you have few sources of Thai-derived income.

[opalred]

take care as always every where

there are expat sharks out there

[1FinickyOne]

I would be very careful about re-sale values and possibilities. I think in the wrong location, you may never be able to re-sell. Rentals can be a nightmare too. The market is a kaleidoscope to figure out. Best to relax and enjoy not being in business for your retirement days. You don't need any headaches.

[Bronx]

On 30/12/2016 at 5:10 PM, NancyL said:

Post no. 7 has much wisdom.  As a newbie, I suggest you come and get yourself settled and get the lay of the land.  Contrary to want some said, there are a few professional rental agents in town and once you're here for a time, you'll get to know them.  They can advise you as to which buildings offer good return for your investment.  As a foreigner, it's a very good idea to work thru an agent (or Thai wife, but this isn't a good reason to get married ) and be sure to report income earned within Thailand on a Thai income tax return.  Thai income tax returns are fairly easy to file -- much easier and less complicated than in my home country, esp. if you have few sources of Thai-derived income.

 

Much wisdom here also - my thnxs.

 

 

[Bronx]

20 hours ago, opalred said:

take care as always every where

there are expat sharks out there

 

Agreed - funnily enough I have learnt over the years that it is in that area one must be the most careful.

 

[Bronx]

20 hours ago, kenk24 said:

I would be very careful about re-sale values and possibilities. I think in the wrong location, you may never be able to re-sell. Rentals can be a nightmare too. The market is a kaleidoscope to figure out. Best to relax and enjoy not being in business for your retirement days. You don't need any headaches.

 

You are probably right - I was always a 'builder' of things - so difficult to stop - 'must try harder'

 

But the replies here have been really useful to me - has been really worthwhile exercise for me -  given pause for thought - thnxs.

Must admit enjoying my time here -  reminds me of UK 60 years ago before they thought up all the rules - my present ignorance is bliss.

Edited January 1, 2017 by Bronx

[1FinickyOne]

25 minutes ago, Bronx said:

 

You are probably right - I was always a 'builder' of things - so difficult to stop - 'must try harder'

 

But the replies here have been really useful to me - has been really worthwhile exercise for me -  given pause for thought - thnxs.

Must admit enjoying my time here -  reminds me of UK 60 years ago before they thought up all the rules - my present ignorance is bliss.

 

This is a mistake that I have seen over and again... expats come here and think they are going to duplicate a business success that they had back home. And it never seems to work out, but for a very very small percent. As a retired businessman, there were so many times that I had sudden exciting business ideas that I was sure would work - - but fortunately, 20 minutes later I recovered my senses and felt much better for it.

 

If you go back to the fundamentals you knew as a younger fellow. Success in business takes a lot of time, knowledge, and hard work. It takes unending devotion. If you are willing to do that, you might have a chance, but really, why bother?