“You’ve studied the Bangkok market, consulted with real estate professionals and using personal experience you have carefully selected a savvy property investment; however, despite all this, it’s been a long wait and your property is still vacant…”
If you are reading this, you’re probably having a hard time finding a tenant!
Bangkok is undoubtedly Thailand’s economic and commercial heart. Local Thais and expat residents are attracted to the city’s wealth of professional opportunities and for its comfortable lifestyle. This has created a vibrant and active rental market throughout the city.
However, Bangkok is a developing city with a rapidly changing urban landscape and unfortunately private landlords are the “collateral victims” of its success. While Bangkok’s rental market is healthy (And booming), over the past 5-years developers have been churning out new residential projects which has created an inevitable condo glut.
This has created two adverse rental trends:
1. A hyper-competitive tenant’s market, where potential renters are spoilt with rental options to consider. As a result, tenants are becoming increasingly choosey and demanding.
2. The issue is further compiled by the fact that most Property Agencies in the City are typically small and medium sized businesses (Between 2-10 staff). Their modest size means they are unable to manage the sheer volume of Condos in their marketing portfolio.
Therefore, finding a quick tenant for your buy-to-let property, requires some adjustments and flexibility.
Here are 3 practical tips to consider:
1. Make your Property Standout!
“I’ll furnish and decorate my property, once I get a tenant.”
“I will buy the cheapest furniture and appliances, to maximize my rental returns.”
This flawed way of reasoning, prevalent amongst landlords in the Bangkok rental market, means that most condos look bland and characterless. To stand the best chance of finding a tenant, landlords need to dedicate some effort into furnishing and decorating their unit.
Potential tenants usually want a home with beautiful interiors; however, they generally do not want to be bothered with the added effort and expenses of decorating themselves. It is always important to remember, that there is a lot of competition and tenant’s will undoubtedly select properties that standout and feel unique!
2. Pricing and Negotiations
Landlords are advised to remain grounded in their price expectations marketing their units at average prices, rather than on the high-end of the rental ranges.
It is important to note that in most cases, Real Estate Agencies will market properties using online channels (I.e. Property Portals such as Hipflat or Thailand Property) where renters are inclined to search in price order from “low to high”.
Special requests such as provision of electrical appliances (I.e. Toaster, Microwave), inclusion of early termination clauses and price discounts are a relatively standard element of negotiations in the city. Since Bangkok is currently a tenants’ market it is always good to be flexible and compromise with requests that are reasonable!
3. Working with Property Agents
When instructing an Agent, communicate in a straightforward manner and offer clear and concise information about your property, preferably by e-mail.
Making sure to offer the following details:
– Condo Name
– Unit Number/ Floor
– Beds/ Bath/ Size
– Rental Price Expectations
– Contact Details (Number, Email, Whatsapp…)
Bangkok Property Agencies get OVERLOADED with landlord listing requests (That usually far outnumber rental client inquiries); therefore, it is not uncommon for Property Agencies to struggle with landlord and listings management. By providing clear information and instructions, this allows agencies to go about marketing your units faster and more efficiently.
On a final note, it is perfectly normal to instruct several Agencies to find tenants for your property. Advertising on a multi-agency basis, is probably the best way to maximize your unit’s advertising and marketing exposure!