Bangkok is Thailand’s dominant urban centre and a cosmopolitan global destination. The Capital is a major hub for property rentals activity. It is a dynamic market throughout the year comprised of both Thai and Expats.

For those unfamiliar with Bangkok, it will come as a surprise to find out that most Property Agencies focus their marketing activities on long-term rentals (6 months and above), offering very limited agency service options for short-term accommodation seekers.

This leaves Bangkok’s potential renters and landlords interested in short leases (Leases under 5 months), with a limited choice of property agency service providers.

This article is about offering practical advice to landlords looking for short let management support.

Why do most Bangkok property agencies avoid providing short let services?

Some landlords may be confused by Bangkok Agents’ different business standards.
The answer is dictated by the basic rule of “effort invested and commissions received”.

Most Real Estate Agencies in Bangkok are small to medium-sized enterprises (2-15 Employees), and servicing the large volume of short-term renters can be a challenge (Especially during check-in/ check-out). Also, considering Bangkok’s huge supply of rental options, completing a short let can be as demanding as closing a standard 1-year lease.

There is also a “grey area” when it comes to commission and fees to be charged for short-term rentals. The standard rental commission, “1-year lease = 1 month rent commission” makes short-term rentals a very unattractive proposition for Property Agencies.

For example, a 15,000 THB per month rental

• 1 Year Long Lease = 15,000 THB commission
• 2 Months Short Lease (Pro Rata) = 2,500 THB commission

This combination of high effort and low reward (Relative to long leases) makes short-term rentals a not very attractive business effort for most Agencies.

Options available for landlords looking to short let their properties

Landlords looking to rent their apartment short-term, an easy low-effort marketing option would be to engage a short let management company.

Here is an overview of the types of property management service providers available in Bangkok

1. Airbnb or vacation rentals management

These service providers, provide a full-scope rental management service for vacation or short-term stays (1-2 Months). Their scope of solutions include marketing, check-in/ check-out of guests and on-going maintenance.

Rental fees and commission can vary, but as a rule of thumb many of these providers charge as follows

• Fees between 10 – 40% of total booking period
• Usually inclusive of cleaning and minor maintenance
• Some companies require a Sole Agency/ Exclusivity contract

2. Standard property agencies

Some Property Agencies are open to offering short-term rental services charged at a pro rata rate on the standard agency commission (1 year lease= 1 month commission).

For example, a 12,000 THB per month rental

• 1 Year Long Lease = 12,000 THB Commission
• 2 Months Short Lease (Pro Rata) = 2,000 THB Commission

It is important to know that most property agencies are not interested in short-term renters, because the demanding check-in/ check-out requirements is not a priority for them.

3. Property management agencies

Some service providers started to offer a “hybrid model”, combining short-let management with standard property and tenancy management.

These service providers offer a full rental and management service

• They provide marketing and advertising services, managing the property’s vacancy periods through a combination of both long and short-term rentals
• Supporting check-in/ check-out of tenants or guests
• Assisting with property management issues. (I.e. Property maintenance, cleaning and tenant emergencies)

The fees and commission of these property management companies can vary depending on the company. With most opting for a fixed fee combined with a “% Commission” for any signed long-term or short-term rental agreement.

Some Final Words for Landlords

In a metropolis like Bangkok, with its transient population of working professionals and tourists, short-term leases can help landlords maximize their returns.

Short-term rentals can be an attractive and lucrative opportunity for the following reasons

• Short-term rentals often command higher rental rates compared to standard 1-year leases
• Short-lets can be a practical way to manage vacancy periods

It is important to remember that short-term rentals also result in significantly higher “wear and tear” on the property. So, it is paramount to carefully manage and maintain the property on an ongoing basis.