The property agent profession is completely unregulated in Thailand.
This may come as a surprise to many, but Thailand’s property agency business is not regulated by any industry specific legislation and real estate agents are not required to hold a license!
As a result, agencies, freelancers and even part-time agents are popping-up all over Bangkok. Unfortunately, this means property searchers and landlords are subject to varying levels of standards and service.
However, despite this chaotic state of affairs at least one reassuring aspect of the Capital’s property market is that commission rates for selling and/or renting residential property have standardized as follows:
Standard Bangkok property agency commission
Sales Commission
The standard sales commission of residential property on the secondary market is 3% of the agreed selling price. Please note, if a seller decides to instruct a law firm to help with the sales and transfer process, the legal fees are at the seller’s expense.
Rental Commission
The standard rental commission is 0.5-month rent for 6 months lease, 1-month rent for a 1-year lease and 1.5-months’ rent for a 2-year lease. For lease durations between these fixed rental terms (E.g. 18 months lease), the rental commission is usually calculated on a prorated basis.
It is important to note, rental commission is a fee charged for finding a tenant and it does not include maintenance, property management and tenancy support. These additional services are usually charged as a separate service package known as “Property & Tenancy Management”.
Property & Tenancy Management
Property & Tenancy Management is still a relatively new service, as local Thai landlords generally prefer self-managing their rental investment properties. However, it is gradually gaining popularity, especially amongst overseas landlords looking to delegate all aspects of owning and renting a property in Bangkok.
As a result, there is currently no fixed standard when it comes to property management fees charged. Fresh Property typically charges the following rates:
1-bed condo- 15,000 THB per annum
2-bed condo- 20,000 THB per annum
Before engaging a real estate agency, landlords are advised to check the service provider’s scope of services and management agreement. As certain services, such as landlord legal compliance (E.g. Tenant TM30 report) and property tax filing (E.g. New Land and Building Tax filing) are sometimes not included in the agency’s scope of work.
Some general Bangkok property agency standards:
- Sales and rental commission is paid by the landlord/seller and in Bangkok property searchers do not need to pay their property agents a finder’s fee.
- Local Bangkok agents do not charge for lease agreement, inventory or sales and purchase agreement drafting and preparation.
- Bangkok agents usually do not charge extra marketing fees for services such as photography of the property, online campaigns, open houses, etc.
Calculating Agency Commission Examples:
1. Sales Commission
3% of Agreed Sales Price
Example:
Agreed Sales Price= 10 MB Condo
– 3/100 x 10,000,000= 300,000 THB Commission Due to Agent
2. Rental Commission
6 Months Contract= ½ Month Rent Commission
1 Year Contract= 1 Month Rent Commission
2 Years Contract= 1.5 Month Rent Commission
3 Years Contract= 2 Month Rent Commission
Example:
Rental= 10,000 THB Per/Month
– 6 Months Contract= 5,000 THB
– 1 Year Contract= 10,000 THB
– 2 Years Contract= 15,000 THB
– 3 Years Contract= 20,000 THB
Some extra property agency commission info
- Developers may offer Bangkok property agents premium commission rates higher than the standard 3% for the sale of condo units in off-plan projects.
- Commission rates charged by property agencies outside Bangkok (I.e. Pattaya and Phuket) may vary.
Fresh Property is an established real estate agency with over 5 years of experience; since our incorporation back in 2015, we have rented and sold hundreds of properties in Central Bangkok. If you are a landlord looking for sales, rental or property management services feel free to contact us!
Are you looking for a Professional Property Management Team to protect your overseas investment?
Ernest says:
How about the leasing contract renewal for one year, still one month or half month commission?
Fresh Editorial says:
Hi Ernest,
This can vary Agency-by-Agency, however usually it is common practice for landlords to pay a 1/2 Month Commission for a 1 Year Renewal.
Hope this helps!
Fresh Property Team
A Y says:
What is the chance that the commission be negotiable if the renewal contract is only 1 year?
Fresh Editorial says:
Hi Ay, thank you for your message.
We would not advise this approach, Property Agents are hard working professionals and their commission fees are justified.
The current Rental Market is quite challenging and there is a large amount of stock/ condo options on the market; therefore Agents are able to push their clients to other properties if required.
Hope this helps!
Simon says:
Commission is most definitely negotiable, especially in todays market place. Three percent is high in comparison to many other countries and for this reason, the freelancers and the part timers that the above article mentions, are attracted to the market.
It all depends upon how desirable your property is however remember that the agents need to sell to survive. I know a number of people who have agreed 2% and even 1.5% on more expensive property purchases.
Maria says:
How much commission for 2 months rent?
Thank You!
Fresh Editorial says:
Hey Maria, it would be calculated on a pro-rata basis.
Example:
– 12,000 THB Per/Month
– If 1 Year Lease= 12,000 THB
– If 2 Months Rent= 2,000 THB<< It is important to note, that if you are using a "Short-term/ Vacation Rental Agency" Rate may be different. As a Vacation Rental Agency may also assist with cleaning, equipping unit and marketing the unit on "Booking Websites".
BORISLAV ISAKOVIC says:
From my knowledge property agents in Thailand are mostly not well educated and in a fact ,I have a feeling that they just want to rip off foreigners.
Lee Simmons says:
Hello,
I’m a realtor in the United States looking to list condos in Thailand. Do you have any resources on Thai real estate law or direction to partner with a company?
Lee Simmons
dev says:
Hi Lee, you can list properties by contacting us directly. Thanks and looking forward to working with you!
sarah says:
Some agents in Phuket will ask for 10% each for two agencies… that means 20% commission on rentals..
The biggest one in town. how can that be acceptable? 650,000 each for a rental.
dev says:
For short-term rentals (1-3 months), that could be the case and would be in-line with some of the online travel agencies. Generally, agencies in Phuket are asking for the same commission on long-term rentals as in Bangkok.