Renting a condo is considered a passive income generation that provides long-term continuous returns. But nowadays it is not as easy as before because the volume of newly built condos along the mass transit line has exceeded the market demand. Renting in the New Normal era, how do condo owners have to adjust and what techniques can win their hearts? Tenants and other competitors must read this technique

1.Survey the location, pointing out the coordinates of the target customers

Location surveys will allow you to know who the target customers are, for example near the office building. The target customers are company employees. A government office is a group of civil servants. A university is a group of students, etc., so that condo owners can predict how much their target customers have purchasing power. in order to set a price that matches the target audience and decorate the condo to suit the lifestyle of the tenant, such as near the university, there should be a desk for reading or working

2. Set the appropriate rental price according to the market mechanism

Now, along the BTS line, there is a condo project going on as a mushroom. Of course, rentals are often subject to extreme price cuts. Condo owners should set the rental price appropriately. By looking at the median price advertised on the website or social media in order to determine the rental price that is not cheap and not too expensive. The method of calculating the rental rate is as follows:

2.1 Net Rental Yield

(Rent to be received throughout the lease contract – common fee) x 100

The price of the condominium purchased

For example, buying a condominium for 3,000,000 baht, renting out 20,000 baht per month, with a tenant making a 1-year contract (received rental fee 240,000 baht per year) with a common fee of 24,000 baht per year, there will be a rate of return on rent. net

(240,000 – 24,000) x 100/ 3,000,000 = 7.20% per year

2.2 Equity Dividend Rate

It is a formula for calculating returns that are closest to the investment. because before receiving the rent In addition to deduction of common expenses, the condominium installment that must be paid to the bank throughout the year must also be deducted. At the same time, the purchase price of the condominium is not repaid in full (3,000,000 baht), but only partially paid. actual expenses such as reservation fees, down payment and other expenses including, for example, room decoration, furniture cost, etc.

Rental fee that will be received throughout the lease contract – Common fee – Full year condo installment x 100

Reservation fee + down payment + room decoration fee + furniture fee + Wi-Fi installation fee

For example, buying a condominium for 3,000,000 baht, booking fee 100,000 baht, down payment 500,000 baht, monthly payment 15,000 baht (180,000 baht per year), common area fee 24,000 baht per year, condominium decoration 50,000 baht, furniture 20,000 baht, Wi-Fi installation fee 2,000 baht by renting 20,000 baht per month, with a tenant entering into a 1-year lease (received a rental fee of 240,000 baht per year), there will be a rate of return on rent from cash in the year equal to

(240,000 – 24,000 – 180,000) x 100

(100,000 + 500,000 + 50,000 + 20,000 + 2,000) = 5.36% / year

3. Decorate the condo Multi-Function

Nowadays, online learning or Work from Home has become the New Normal for people in today's era. As a result, the lifestyle of people in this era is more at home. To decorate the condo to have a multi-purpose space by choosing furniture that can be adjusted for various uses, such as a sofa that can be adjusted to sleep. A foldable bed or desk gives the condo more space without the residents feeling uncomfortable Therefore, it is something that the condo owner should consider decorating the room to meet the needs of the tenants in the New Normal era, for example.

• Install floating cabinets and shelves for more storage space and proportions.
  
• Paint the room or attach wallpaper in light colors such as white and cream to make the room look brighter and wider.
  
• Install a large frameless mirror on the wall of the room to make the room look wider and not feel cramped like being in a square room.
  
• There are living facilities such as an air conditioner, TV, refrigerator, washing machine, microwave, water heater. Digital door locks, etc., will make it easier for tenants to make rental decisions because they have everything they need.
  
• Before every rental Should clean the entire room and update the room to look new all the time or change some of the damaged items to have a new condition ready to use, to impress tenants and increase their confidence in condo rentals.

4. Highlight your room with a stylish photo or short video.

Condo rental In addition to the location, it must be near the community, easy to travel around. A reasonable rent has been charged. Take beautiful photos of your condo or shoot a short video clip. In order to announce the rental, it will make the tenants more interested and easier to rent by choosing to shoot the room in different angles to see every element of the condo such as sofa, bed, kitchen, bathroom, balcony, condo view, including common areas and facilities

5. Post condo rentals on real estate websites or groups on social media

Nowadays, there are many websites or Facebook groups for renting real estate. But mostly if posting for free often get a position in the front and back Causing tenants to search our condo can't be found But if you want a good position, you have to pay to Pin the post on the first page. The cost of posting to stick to the first page has a rate of thousands to tens of thousands of posts depending on the position of the website page. but if posted on the web or social media Still can't rent or don't have time to take care of, may choose to use the services of a rental agent. There will be a commission fee of 1 month rental per 1 year lease contract. Before using the service, brokers should agree to understand each other well in terms of rental and service agreements.

All 5 of these are basic techniques for finding people to rent condos quickly. Generate passive income, but above all, during the many new condos, the competition is very high. Sometimes condo owners may be forced to sacrifice or break even in order to bring their rent to help pay off their condo debt with the bank. Therefore, before renting out, you need to think carefully about the cost of renting, including the depreciation of the condo. If you are renovating your condo for rent but still lacking money, try Speedy Loan personal loan with a maximum limit of 5 million baht*, installments up to 72 months. See details here.https://www.scb.co.th/en/personal-banking/loans/personal-loans/speedy-loan.html

Source :

https://www.ddproperty.com