House Rental - Will Owner's Greed Be Suicidal?

[Big Boy]

As I've written many times on this board - when I visit Hua Hin I rent a house for a month at a time. I have always found houses in the Soi Sarawat and Soi Grand areas to be very reasonably priced and plentiful.

This year I will be spending August in Hua Hin - not exactly high season.

The only available properties in those locations this year where the owner/agent is willing to rent for one month are unfurnished, and they want 20,000 Baht rent plus 10,000 Baht deposit in advance. However, there were many properties that were willing to rent for 3 months minimum.

As it turns out, we've managed to get a fully furnished, air conditioned place on what I think is Soi 63 (much better location) for 13,000 Baht, with just 5,000 Baht deposit - a little more than we usually pay, but in the grand scheme of things, it will still be a very cheap holiday.

What is going on? I would have thought in low season the owners/agents would be grateful for short term rentals - at least the property would still be making money. They seem to be content to leave their assets empty during the low season on the off chance that somebody wants a longer term rental - doesn't make good business sense to me.

Can anybody please throw any light on this new practice, and what they hope to achieve by this apparently suicidal policy?

[Georgy Porgy]

That's all well and good if you are in the know - but if you just do a google search for furnished rentals they are all 40-60,000 baht a month, low season and all!
Don't complain about 20,000

[JW]

Hi BB,

The owners always seem to want to hang out for a long termer, they often view the short term guy as less likely to look after the property well (this is often true!). Thats how we find it, and i think it will remain the same. There are one or 2 of the european estates which offer short term but these are really nice new villas costing at least 3000 baht per night.

[H2ODunc]

One of the reasons I left rip off HH. I came to Chumphon and got a 3 bed 3 bath 2 storey house with a big garden on a private estate which has a pool foe 5000 a month. a friend has just got a 3 bed bungalow round the corner with small garden for 3,500. Nice people, excellent beaches, good diving and everyone isnt trying to rip you off. And when it rains it doesnt flood!!!!!

[Jim]

I'd be interested to know where you tried looking Big Boy. Our agent has certainly not suggested that someone has made us an offer and ours tends to be empty in the low season. Did you try bargaining down? I cant speak for anyone else, but we're all ears to offers in June, July and August. Advertised rates are always peak season, but I know of lots of places that will do monthly rentals whatever time of year and we can all be very flexible in what we'll accept.

[Big Boy]

Jim,

My Thai daughter who lives in Hua Hin does the looking a couple of weeks before we are due to arrive, and does not normally go through agents - its always a friend of a friend type arrangement. Many owners who are out of the country for a while leave the care/rental to Thais who are not what I would call bona fide agents. Although we've always found the places we rent to be spotless, and in excellent condition.

[buksida]

What is going on? I would have thought in low season the owners/agents would be grateful for short term rentals - at least the property would still be making money. They seem to be content to leave their assets empty during the low season on the off chance that somebody wants a longer term rental - doesn't make good business sense to me.

This seems to be the way it goes here, they would rather leave the place empty than lower the price, there are a number of vacant houses down our soi that have been empty for years simply because they're overpriced. Most of these landlords are affluent Bangkokians who don't need the money anyway so they don't really care, they also usually own a number of properties.

Landlords also do not want to pay commissions which is why you never see houses in the 5000-15000 baht range on rental websites, they're simply not worth the hassle of listing. The only ones that are profitable are the holiday monthlys at 30-40k.

[DawnHRD]

This seems to be the way it goes here, they would rather leave the place empty than lower the price, there are a number of vacant houses down our soi that have been empty for years simply because they're overpriced. Most of these landlords are affluent Bangkokians who don't need the money anyway so they don't really care, they also usually own a number of properties.

Agree completely, Buksi. Slightly off topic - when I first moved here, my Mum wanted to start up a creche/kindergarten in one of those offices at the front of Sport Villa. We had all the materials, brought from HK and viewed the property quite a few times. We even had agreement from Sport Villa that the kids could use their pool at quiet times.
Unfortunately, the owner of the office got greedy (can't remember if key money or actual rent was the sticking point) & wouldn't budge from her position. So, we decided against it. I think that office remained empty for at least 3 more years... I'm afraid that's something about the Thais that I really don't understand.

[PJG]

Hi all,

As a property owner one reason we are not interested in short term rentals (1 month)as they are a pain. Generally the rent received B10000 does not cover the hassle of sorting out Electric/water/Telephone bills plus the arguements about paying for the damage.

[Big Boy]

Hi all,

As a property owner one reason we are not interested in short term rentals (1 month)as they are a pain. Generally the rent received B10000 does not cover the hassle of sorting out Electric/water/Telephone bills plus the arguements about paying for the damage.

Surely, that is where the deposit comes in. We always pay a deposit, and when we (actually its my daughter's perk) get it back, its minus the cost of the water, electricity etc. We've never caused any damage yet, so I'm not sure what happens then.

[H2ODunc]

PJG WHAT HASSLE!!!!!!!! for you to say its to much hassle is crap! electric, agree a price per unit same as water. telephone is the same if not diconnect it. You have a deposit to cover above so wheres the hassle????? Are you telling me you would rather have your place empty than rent it on a month to month basis. I would say renting by the month brings in more money. If Im renting long term I want a good discount. Is it just me or is it too simple????

[Jim]

Dunc, one reason we do monthly rentals is that we get much more (30k ish peak season) and we can afford to get someone else to sort out the utility bills etc. The longer the let, the lower the rent.

[Big Boy]

Sorry Jim, I still don't understand the logic. Yes, you can get 30Kish in peak season, but why would you rather get nothing in low season than maybe 15K?

Maybe the key is in PJG's comment

arguements about paying for the damage

I'm tending to judge all tenants by my standards - you just haven't been lucky enough to rent to me

[gooze]

The OP said he had looked via some agents. The reason wee do not bother with rental property is that it is just to much hassle.

Rent a place for 20,000 for one month the agent would get 2000 maximum what a lot of aggrow for nothing.

As we all know the maygority of times that you leave a property it is a fight to get your deposit returned. Why on earth would an agent want to get involved in this.

I do not know how much holiday per year the OP gets but for me when i used to go on holiday if I had to worry about 100 pounds on accomadation I would go somwhere I could better afford.

Do some overtime and stop whinging about 100 quid you cheap Charlie. Could understand it if you were renting for 3 months or more.

If you also want to know where the cheapest chang bear is that infos on the site as well!.

Rant over.

[caller]

Funny how in the UK, property to rent in a tourist area is usually seen as a good investment. Price (weekly) goes up and down with the seasons and usually you get a price list telling you how much you pay and what you pay for in advance. If a deposit is needed, its held by the agent.

Surely thats not rocket science?

If I could find something like BB has, I would happily travel off-season, sounds great - and happily suffer the indignity of being called a cheap-skate.

I have to say Gooze, you do great PR.