To rent or not to rent

To rent or not to rent

As property agents, we get asked this question pretty often and really there’s no fast and hard rule rather it’s more a chicken and egg kind of question….

For certain owners who have purchased a property in Phuket as a pure investment while using it as a holiday home, they have no qualms about renting their property out whether for short term or long term rental. During the peak season on the island which is over the Christmas and New Year season, a 3 bedroom pool villa could (key word here is could) fetch up to USD$ 700 per nite and a 4 bedroom villa up to USD$ 900 per nite more or less depending on the location and facilities available. For these owners, just a short term holiday rental through the high and peak season is sufficient to pay off most of the maintenance costs of the property throughout the year. Such owners forgo coming to Phuket over this time, opting to holiday somewhere else or even spend time with family back home.

Renting out a property and making some money on an asset is the ultimate goal of any good investor worth his/her salt. However it’s not all that easy for a property owner, a little homework and some effective management skills are required. Firstly to rent out a property means that it has to be showcased or presented to agents & clients therefore the property must be maintained and looked after by a maid or villa management company who can come by to show the villa sometimes at the drop of a hat. To effectively rent out a property, rental agents must be contacted and a system worked out for checking availability & rates through to booking the property, collecting & refunding deposit.

Setting up a website showcasing the property is recommended and clients and agents as well could browse through pictures and view what the property has to offer. Now that a booking is secured, it is always advisable to have a villa manager (who speaks a reasonable amount of English) check in clients upon arrival. In the event that during the stay the clients have any issues with the property or should they require any assistance during their stay, they can contact the villa manager. This is a vital part of the services provided by a villa manager to ensure a memorable and enjoyable stay where such services will ensure repeat clients as well as new clients by word of mouth.

On the other hand, there are some owners who will refuse to rent their property out for varying reasons from not having someone else sleep in their bed to deterioration and lack of care by clients of the property or basically just not interested in the headache of managing clients in their property. For this group of owners, it’s very clear that they are not renting out their properties.  

For those who are still mulling the question “To rent or not to rent is” the answer maybe is a combination of both which is to selectively rent your property out to the “right” clients. A little background information on the clients by the agent would be helpful including a reasonable “refundable deposit” to cover any damages during the client’s stay. There is no sure way to safe-guard a property from damage when renting but taking certain precautionary measures as an owner would help. Any antique pieces or priceless articles, furniture or family crystal should be safely kept under key & lock when the property is rented out and you’re set to rent your property out provided you did your homework and have arranged to manage your property beforehand.

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