Rental Guarantee Program
A rental guarantee program is the easiest way to generate income from real estate owned in Thailand.
Many developers offer the option to join the program and receive a guaranteed return on investment. The term of duration of such programs vary from 2 to 15 years in Phuket. The program offers a return of investment from 5 to 8% per year and has several conditions for owners. The management company will rent out your property, organize all technical aspects related to the lease, and maintain the property. To join the rental program, some developers require the purchase of a standard furniture package, and under the agreement you will not be able to rent your property out to third parties, either independently or through other agencies. The use of your property for personal holidays is also limited from 2 weeks to 30 days per year, which as a rule, usually fall within the low season.
There are many advantages of rental guarantee programs. First, the management company assumes responsibility for the organization of all technical aspects related to the rental. You do not need to engage in advertising, find tenants, take care of arrivals and departures, or organize cleaning and maintenance. The management company will take care of everything. Secondly, after deduction of taxes, you receive a stable annual passive income (the management company will also take care of taxes). Sometimes, developers offer to absorb any monthly fees relating to the maintenance of common areas, garbage disposal and etc. In this case, the owner does not have any expenses. In addition, the owner can expect a gradual increase in the property value, since the real estate market in Thailand has good appreciation.
The rental guarantee program is ideal for those who want to receive a stable annual income without problems.