The first question, what is a Corporate Tenant?

Very simply explained, Bangkok is an important economic hub within South East Asia and as a result numerous national and international companies have their headquarters based in the City.

This means business and career opportunities abound and Bangkok is a particularly popular expat destination for work. Numerous companies often provide “housing allowances” to their foreign employees, which range from small stipends of 10,000 THB to massive executive allowances of 100,000 THB+!

In many cases, Companies providing these benefits prefer having “Rental Agreements” under their “Company Name” rather than under the name of their employee actually residing in the property; this is for legal and accountability reasons.

So what are the benefits, to Landlords?

1. Higher Rental

Corporate Tenants, tend not to negotiate rental price as they are provided with an allowance. On top of this, it is not unusual for landlords to charge a higher rental rate (Up to 5-10% Extra) as a form of bonus to cover administrative efforts. (I.e. Issuing receipts, withholding tax certificates, etc.)

2. Longer Rental

In many cases Corporate Tenants, are posted in the country/city on a fixed-term basis; meaning that they will work in their employment position for fixed periods (I.e. 1 Year, 2 Years, 5 Years, etc.). In many cases Corporates are here on long-term contracts and are able to sign leases above the standard 12 Months.

3. Quality Tenant

Corporates, tend to be quality tenants that take good care of the Unit as they are from a solid professional background!

However before Landlords start jumping on the “Corporate Tenant” bandwagon, there a numerous adjustments and considerations:

– Administrative Support and Taxes

Companies often have rigid administrative procedures that will require the Landlord to produce monthly invoices and corresponding receipts (Once monthly rent is transferred). In some cases the Company may even require the Landlord to produce Withholding Tax Certificates.

On top of this, an important consideration is that since the Company will be declaring monthly rental as an expense to the Bangkok Revenue Department, Landlords are advised to declare the income generated on their rental property.

– Property Condition and Extras

To attract a Corporate Tenant, a Condo must be in pristine condition and stylishly decorated. In most cases, since their budget allowance is substantial they tend to consider mostly middle/high-end condo developments.

Corporate Tenants may also request extra accessories such as pillows, duvets, bed sheets, etc. They may even require pre-installed services such as Internet or Cable TV.

So if the negatives don’t seem so bad, and as a Landlord you still want to cash-in on Corporate Tenants… what are the next steps?

This may come-off as a little biased, but the number one tip:

Choose some good Property Agencies to market your unit!

The reason is simple, top Property Agencies work directly with Companies that contact the Agencies every time they are relocating an employee to Bangkok. This increases your property’s exposure to potential Corporates.

Efficient and experienced Agencies, work on behalf of the Landlord and can draft leases that split monthly rental into difference parts (Services, Furniture Rental, etc.). This is in effect to help mitigate/reduce the effects of income tax.

Finally good Property Agencies have an Admin Team that can take care of the administrative processes on behalf of the landlord, such as:

– Issuing Invoices
– Producing Receipts and withholding tax certificates

So, don’t hesitate to contact us.
We would be delighted to market your Unit!