Investment rental properties : the different options

To invest in a real estate property is often a life project, and a choice that should be carefully considered and prepared to guarantee its feasibility and perennity. Thailand has been recognized as a dreamlike destination and it is the ideal place for a property investment.

Several options are available to you if you wish to rent your property in Thailand. 

A. The classic yearly rental

As in any country, you can buy a property, furnish it and rent it out year-round, targeting a clientele of local residents, whether Thai or foreign. However, this requires a good knowledge of the market (or to contact a reliable agency) to avoid getting into the wrong area with the risk of ending up with an empty home.  If you do not live there, you will also have to make sure of the quality and seriousness of the rental management service of the agency that sells you the property. Finally, be aware that the net return on investment for a property in the town center rented on a yearly basis will hardly exceed 4% and will not be guaranteed.

B. Seasonal rentals

If you wish to combine rentals and periods of personal occupation, it is also possible to rent out your property for short periods.
However, this option is subject to certain constraints, in particular because of the Hotel Act. Indeed, only establishments with a hotel license are allowed to rent for less than 30 days. 
To rent your property by the week or by the night, on sites such as Airbnb, your property must not have more than 4 bedrooms (or you cannot rent more than 4 studios, for example). In addition, you will also need to obtain permission from the local authorities and declare your rental income. Furthermore, you should not underestimate the complexity of the logistical tasks (management of entrances, exits, households, repairs…).
Finally, contrary to popular belief, it will not be possible to expect very high profitability, as the very good price-quality ratio of hotels in Thailand leaves less margin for this type of rental than in Europe for example. 

C. Real estate developments with hotel management 

This option offers a legal and secured solution for people looking for a profitable rental investment without management worries.
It implies investing in specialized real estate developments, which have a hotel license for rental operation. This type of investment guarantees high income (up to 10% per year), regular (monthly, quarterly or annual payments…) and fixed by contract. The hotel company ensures the complete management of the property (filling, tenant relations, maintenance…).   
Some programs also offer the possibility to occupy your property free of charge for a few weeks a year (often from 10 days to 4 weeks). 

DISCLAIMER : All the information contained in this FAQ is given for information purposes only and is not official information. It is a popularization of problems, some of which (property law and taxation in particular) require the opinion of experts and individual treatment on a case-by-case basis. Although TPG has produced this content in good faith, with the aim of providing information that is as accurate as possible, it cannot be held responsible if certain information proves to be inaccurate.