Property Management

Earlier, we discussed ways of generating income through purchasing real estate in Phuket, one of which is through rental income. On average, rental income can provide a return of 5-10% annually based on the property's value.

One of the first questions that interests an investor is the rental management system, specifically, who will handle the management, how it will be done, and who will pay whom. On one hand, the answer is straightforward - a property management company. However, what the company offers, whether you can choose them, or refuse their services, is a more complex matter.

A property management company provides a full range of services, from finding tenants, calculating rent, advertising the property, to maintaining the property, cleaning furniture and plumbing, and cleaning after tenants leave.

Let's consider the available options for managing real estate ⬇️

Developer's Property Management Company

When purchasing a real estate property, you can entrust its management to a specially created property management company (PMC) provided by the developer, which will handle a full range of services. In this case, the rental income will be called a rental pool, where you will receive 60%, 70%, or 80% of the total rent of all similar apartments in the property. Accordingly, 40%, 30%, or 20% will be retained by the PMC as payment for their services. Payments can be made annually, quarterly, or sometimes even monthly.

❗️ Note that if the condominium is managed by hotel brands such as Marriott, Accor, Wyndham, or if the developer has a policy of a single PMC, it is not possible to refuse the services of the complex's PMC. Logically, hotel brands and developers have certain standards, so all rooms are managed by one company.

Sometimes the developer, and always the hotel brand, set a limit on the length of stay in the property of 14-45 days per year. Therefore, when choosing a property, it is important to consider whether you plan to live in the property for an extended period, as not all complexes offer this opportunity.

Trust-based Property Management

Or in other words, a third-party management company, it is crucial to approach the selection process carefully. Pay attention to the experience of managing similar properties, reporting terms, payment frequency, the presence of an office, and so on. You receive rental income directly from your property.

Independent Management

The first thing to understand is that it is impossible to engage in independent management without being physically present on the island. Even if you don't plan to rent out your property, it is important to remember that tropical villas and apartments require proper care, cleaning, and ventilation. You may ask friends once or twice to move in/out, pay utility bills, prepare and sign a contract, or air out the villa, but after that, it becomes inconvenient. That's why property owners rarely choose to manage independently, as it is an additional headache, and the income in all three of the above-mentioned options is roughly the same

Property Maintenance

Sinking Fund - a one-time contribution to the major repair fund, made by the first buyer: from 100,000 Baht.

This reserve account is used for capital repairs, elevators, corridors, access roads, etc.

Common Fee (Service charge for common areas) - from 60 Baht per m² per year.

An annual contribution for maintaining the common use areas: pool cleaning, garden care, garbage disposal, etc. Paid in advance for one year. The price depends on the location, size of the territory, and its maintenance. For apartments, it usually ranges from 2,000 to 5,000 Baht, and for villas, it starts from 5,000 Baht per month.

Electricity and Water

Electricity - from 4.5 Baht per 1 kWh. Depends on the property's location.

Water - from 25 Baht per 1 m³. Depends on the management company.

For the villa:

• Housekeeping - from 1,000 Baht per session. Considering the tropical climate and humidity, it's essential to air out the premises once a week.
• Pool cleaning - from 2,000 Baht per month
• Gardener services - from 2,000 Baht per month
• Insect control for the property (pest control) - from 2,000 Baht per month

Do you have any further inquiries?

Please do not hesitate to contact us through social media. We would be delighted to offer complimentary consultations on any matter ⬇️

✔️ E-mail: victoria@apart-homes.com

✔️ Т: +66 83 870 0998

✔️ WhatsApp: +66 83 870 0998

✔️ Telegram: +66 83 870 0998