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 managing the short-term rentals 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 short-term leasing
There are many reasons why you would choose to lease your property for the short-to-medium term. 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. Short-term rentals also yield higher returns. This is due to the fact that tenants are willing to pay more for a short stay - hotels tend to be costly alternatives that provide less amenities for both families and those travelling solo alike.
One disadvantage that short-term 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
There has been much in the news during the last several months on Thailand’s stand on Airbnb. If one were to go by the law, the independent letting of premises/rooms out for the short term is illegal. Some say this is due to the fact that the platform is affecting the hotel industry dramatically. That being said, it’s tolerated and somewhat of a grey area – the regulations surrounding the issue are opaque at best. What is interesting to note is that 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 points to the fact that the practice, although somewhat frowned upon by certain parties, is not a violation of any law.
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.