Properties that function as a Holiday Home differ slightly from an investment perspective. Owners tend to not tenant them out as they serve as a second home as and when required, usually for a quick getaway or a longer escape. In the last few years, the introduction of online hospitality platforms such as Airbnb have disrupted the playing field considerably, allowing owners to monetise these assets without committing to any long-term contract.
Digitalisation paving the way for the future
With the introduction of a host of disruptive real estate management startups in the industry, now’s a better time than ever to earn extra money from that holiday home. If you happen to be a Sansiri property owner, one platform you can utilise is Rental For The Holidays, which allows Sansiri property owners to let their apartments with ease in Chiang Mai, Phuket, Pattaya and Hua Hin. Buyers can rest assured that their developments are being legally managed and professionally cared for to maintain their condition and commercial value. The program, which is managed by Sansiri’s subsidiary PLUS (PMR) Real-Estate Management, is a win-win for both owners and those who are looking for quality accommodation at a fraction of the price.
Another platform that is revolutionising the Thai property industry is Hostmaker, a London-based hospitality management service provider backed by Sansiri. The company essentially functions as a full-service Airbnb management company, where homeowners don’t have to get involved in the management of their properties. It also manages listings through TripAdvisor and Booking.com. The company assists in such areas as housekeeping, photography, daily pricing reviews, guest relations, vetting, and interior design.
Advantages of monthly rentals
There are many reasons why you would choose to rent your property for a monthly term over the usual 12-24 month period. Firstly, such contracts offer flexibility, it is after all a holiday home and you would want the freedom to reside in it for at least a few weeks a year while on vacation. Monthly rentals also yield higher returns. This is due to the fact that tenants are willing to pay more for a stay free of lengthy contracts - hotels tend to be costly alternatives that provide less amenities for both families and those travelling solo alike.
One disadvantage that these rentals bring is the multitude of ad hoc maintenance surrounding check-ins, cleaning, bookings and the likes. This however is negated by the advent of the platforms mentioned above that manage the end-to-end rental process.
Regulatory stand explained
The country’s Thai Civil and Commercial Code states that “ An owner of a property is entitled to its fruits provided it does not cause problems to other co-owners”. This shows that monthly rentals are legal and are in-line with legal frameworks in the country.
Purchase of a holiday home provides unrivalled levels of flexibility in comparison to regular investment properties. If placed in the right real estate manager’s hands, it will serve as an asset that doubles up as both a place to stay when on holiday as well as an asset that keeps paying dividends and accruing in value.