What should a foreigner consider when renting out a condo in Bangkok, Thailand?

Sep 1, 2023
a year ago
Uwe ****
ORIGINAL POSTER
Has anyone here got experience as a foreigner with renting out a condo in Thailand, specifically in Bangkok?

I am looking into buying a 1-bedroom condo and renting it out. Are there any profitable condo developments that you would recommend (not luxury)? What advice would you give in order to have the least hassle and most profit :)

Thanks for any kind of advice.
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TLDR : Answer Summary
Renting out a condo in Bangkok can be complex for foreigners. Key considerations include the current oversupply of condos leading to low rental prices, the necessity for properties to allow rentals, and regulations that limit the rental duration. While some expats share success stories of achieving good rental yields and ease of renting, others warn about the challenges and potential for low returns. Factors like the state of the property management, maintenance fees, and location significantly impact profitability and hassle levels.
Sam *****
These days agoda/ bookings. Com will take most of the rental money, if not the rental agent will,and maintenance / strata the rest. Not a good investment to make money. But may provide you with the lifestyle you want.
Bob ********
One of the things you need to consider is the state of the juristic body and its rules. Some blocks fall into disrepair as people buy them but dont pay the maintainence, and under the rules it can be very hard to recover the funds until the unit is sold, In the meantime the maintainence falls behind. Have a close look at the Block Balance sheets begore buying.
Val **********
We own a condo in Sukhumvit Bangkok and when we were looking the agent told us if you are looking to rent location is important. We rented our out for a few years with good returns before we retired and spent more time in Bangkok. Important to look at how well the block you are looking at has been maintained some better than others.. You need to understand that it is not easy to re-sell condos in Thailand, it's not like home. We are currently selling our condo which is well priced for quick sale yet we have only had two viewings in six months. PM me if you have any specific questions, I will try and answer.
Ricky ******
If you live in Bangkok, maybe. If you don't it sounds like major aggravation for little return or a huge loss. Stick your money in a bank, earn some interest and have no hassle.
Kool *******
Just make sure the condo development allows rentals by owners.
Russell *******
From what I understand you can only rent out your own property as a foreigner private owner for 2 weeks ish. It can't be a regular income or appear as a business.
Ադամ ********
Russell Blake Can receive rental income. Should be reporting it for tax purposes. What you cannot do is WORK, without a work permit. Meeting renters, showing units, handing out keys and management is work. The 100 percent way legal way is to go hire an estate agent. One could also entrust it to a Thai partner, spouse, etc.
Elisa **********
@Russell ******
not correct. Thousands of condo in Bangkok belong to Japanese, Taiwanese, Chinese, Australian etc and they are rented. I also do it.
Russell *******
@Elisa *********
As private owners ? I read you can do it as a business, but you need a license.

It's only what I remember reading.
Elisa **********
@Russell ******
it’s possible to rent as private individuals / owners. If individuals start to have “too many “ (which might be 5-10-15) homes then it might go under the “business” flag. As long as individuals rent long term, respecting the rules (no short term) everything should be fine, according to law and personal experience.
Russell *******
@Elisa *********
Do you mean someone with a work permit ? How can you pay taxes on a non o visa , for example?
Ադամ ********
@Russell ******
Easy to get tax ID. Every year I report my interest income from bank accounts and get a refund.
Elisa **********
@Russell ******
you can pay taxes on rental investments. They don’t always expect foreigners to pay (but they should).

you will be registered with a tax ID. I am in the process of doing it and a few friends just did that. We are all on elite visa but I think this might apply for the other long term visa as well. Real estate income are treated differently than other kinds of income usually. I will investigate more.
Russell *******
@Elisa *********
OK good luck 🙏
Elisa **********
I am doing with two units in Bangkok and currently yielding 8%. One has been renovated and the other one only decorated .

I have properties also abroad and I must say this was much easier than in other western countries.

I own two properties and I have rented both of them in one day to people I knew, and I plan to sell in a few years. I am a small investor and always happy to talk with like minded people. Most of FB users are not brave or experienced enough to understand the perks of investing here.

- no notary

- low taxes

- private property Is secured

- condo are professionally managed

- GDP will be +38% in 5 years

- rents are booming

Even if supply is increasing, if you consider just a 2% value appreciation each year, with a
***
% net return by the rentals, you are going to earn a good return and cash flow. Plus having a home in Bangkok can be a great plan Z for investors and entrepreneurs who face uncertainty.
Marisa *****
@Elisa *********
Ciao Elisa you have an impressive amount of knowledge. This is an unrelated question to the thread but can I dm you? It’s about renting and making friends in thailand
Elisa **********
@Marisa ****
of course
Michael *******
@Elisa *********
There can of course be properties where the yield can be attractive. But we have to speak in general terms. Bangkok isn't known for high returns in the property market.
Linhof *********
@Elisa *********
Have you factored in losing a tenant, and unable to re-rent the property?
Milad ********
@Linhoff ********
There are many customers, and many agents who can help find a customer.
Linhof *********
@Milad *******
my research says different. Way more rooms available than renters. We shall see
Elisa **********
@Linhoff ********
not yet. I always calculate a -15% crisis factor (can be vacancy/ unexpected costs etc..) on my expected returns.
Frederic ***********
@Elisa *********
hi. I just sent you a pm. You seem to have a lot of knowledge on the matter
Elisa **********
@Frederic **********
happy to help
Steve ********
Best advice I can give is don't do it. Have you seen the number of new condo developments springing up everywhere in Bangkok? Bangkok is not known as a city where you can make a killing on real estate. There are so many empty apartments and rents are very low. Resale values also stagnate, as new investors want to buy new, not old.
Jimmy ******
It also depends on the area you buy in. If it’s foreigners friendly area, they will pay more. If it’s mainly locals area, rental yields are not that high. Also the condo company makes a big difference as some use cheaper materials than others, although they all use super cheap labour. Expect to renovate/fix many things after 2-3 years
Elisa **********
@Steve *******
you are misleading investors and retail buyers. Plus Bangkok home prices have continued increasing from 2014 to today. Also, there is going to be inflation: buying a good resale (not a new off plan) can guarantee good returns in both cash flows (rentals) and capital gain. Then, there are the usual risks of investments. It’s always better to study the market and the single buildings / areas and diversificate the investments with other territories.
Alistair **********
@Elisa *********
Bangkok land prices have gone up massively, but condos tend to perform very poorly.
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