How do you maximize your rental income? Either reduce your periods of vacancy (time with no tenants); or increase amount of rent charged!
1. Reduce Vacancy Periods
In many parts of Bangkok, there is a fairly big choice of properties for renters to choose from, so it’s more important than ever to do what you can to keep your property in a condition that will place it a step ahead of comparable properties. Our property managers believe that the following factors are those which influence potential tenants the most:
• The property is light and airy.
• It does not smell stale. If it’s had pets or smokers, none of that smell should still be around.
• Fresh paint.
• Good working air-conditioners.
• Window curtains and blinds in good condition.
• Modern clean furnishings.
• Good security.
Many of these items can be bought (or attended to) relatively cheaply. When you consider that every additional week of vacancy is costing you several thousand baht, investing in these items makes good financial sense.
Consult our own property manager about the items they feel are most likely to reduce your vacancy periods. They will be receiving feedback from potential tenants at inspections – so they are in the best position to know what your property needs most.
2. Increase Rental Income
We also asked our property managers which factors tend to allow a landlord to charge a higher rent and therefore increase rental income.
First and foremost, landlords need to attend to the issues listed above – as without these, your property is much less likely to be tenanted no matter what bells and whistles it has.
However, our property managers reported that:
• Washing machines may attract another 1000 baht per month in rent.
• An oven may increase rent by around 1000 baht per month.
If your oven unit cost 10,000 baht to install, for example, then it is possible that this investment will be paid off after the first year. After this time you begin to make a return on your investment and your rental income start to grow. On top of this you widen your potential target market significantly.
Before making an investment like this, it is worth discussing with your property manager what they feel the likely rental increase would be (if any), given the location of your property and the current state of the rental market. Then you can crunch the numbers to see if it will be worth your while.