Property management costs in Thailand must be considered before starting villa or condo rentals in Thailand. Property management is managing houses, apartments, and other properties for commercial or individual properties to make sure these places are well-maintained and kept in good shape in Thailand. Usually, the property will be handled by a third party, called a property management company. How much the property management costs in Thailand differ per company and situation, but we’ll try to break down the prices for you.
What are the 3 types of property management payment models?
Before breaking down the property management costs in Thailand, it’s important to understand the three payment models that property management companies can handle.
1. Rent percentage model
The rent percentage model is the most commonly used approach in the residential sector by property management companies in Thailand. Whether managing multi-unit properties or single-family homes, the property owner establishes a property management agreement with the company. The deal allows the company to collect rent and find new tenants for the property. In this model, the property management company usually keeps a small percentage of the rent and shares the remaining amount with the owner.
2. Fixed fee model
Instead of charging a percentage of the rent, the property management company in Thailand charges a fixed monthly fee for their property management and landlord support services. However, it’s important to note that this fee only covers the basic services. If there are additional expenses, such as buying new appliances or arranging for cleaning services, the property management company will bill the owner separately. These extra services are charged at the actual cost, plus a small service fee to cover transportation and management expenses.
3. Guaranteed rent model
This method is commonly used in the residential real estate industry in Thailand, particularly for smaller units in high-demand areas. In this arrangement, a company enters into a rental agreement with the property owner and pays a fixed rental amount. They can then rent it out to others at a higher price as per the agreement. The company’s profit comes from the additional amount they charge over what they pay the owner. This method is typically suitable for property owners who prefer a steady income without the hassle of dealing with the details of renting it out themselves.
What are the property management costs in Thailand?
Property management costs in Thailand, particularly Bangkok, typically range from 10% to 20% of rental income. These fees cover property management and landlord support, but do not include any additional expenses. How much property owners pay every month to the property management company depends on the gross rental income. Here is an example of the monthly property management costs in Thailand could look like:
- Property management fee: 15%
- Gross monthly rental income: ฿ 12,000 ($324)
- Monthly property management costs in Thailand: ฿ 1,800 ($48.60), which is ฿ 21,600 ($583) annually
In most cases, property and tenancy management companies in Thailand offer various levels of management, maintenance, and support, which may include a fixed management fee and a percentage of rental income. For that, property management costs in Thailand vary per company.
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Frequently Asked Questions (FAQs)
Why do I need property management in Thailand?
Property management involves overseeing and maintaining your real estate assets, ensuring they are in good condition and generating income if you rent or sell them. Property management in Thailand is crucial to ensure a successful property rental journey.
What are condo maintenance fees in Thailand?
Condo maintenance fees, often referred to as common area management (CAM) fees, are fees for the maintenance of the condo building. The amount of fees one has to pay depends on the complex’s location, size, and amenities. In Thailand, condo maintenance fees typically range between ฿ 25 ($0.68) and ฿ 100 ($2.70) per square meter per month.
What should I consider when comparing property management companies’ fees in Thailand?
When you want to compare the fees of property management companies in Thailand, you should consider the company’s reputation, responsiveness, scope of services, and ability to meet your property management needs.
How to ensure a property management company in Thailand is reputable and trustworthy?
To ensure a property management company in Thailand is reputable and trustworthy, you can research its background, check for reviews and references, and ask for its licensing and certification. A reliable company will provide transparent information and communicate clearly.