With a glut of condos in the City of Angels, landlords need to go back to the basics to avoid “void” or vacant periods.
Bangkok being an economic powerhouse of Southeast Asia, the City offers a variety of business and employment opportunities in a variety of industries from Banking, Manufacturing, Hospitality to even Tech. Positive economic factors, have over the years transformed the city into a truly cosmopolitan hub. This has in turn resulted in the development of a substantial expatriate community, who forms the bulk of the Rental Market in the Central Business District.
At present, Bangkok benefits from a relatively healthy rental market and the city offers Rental Yields between the ranges of 3-6% on average. While Yields offered are not breathtaking, it is not negligible and coupled with the fact that the Price of Units offered are relatively lower compared to its regional counterparts (e.g. Singapore and Hong Kong), Bangkok represents an attractive investment offering. On top of this, Bangkok’s urban landscape is still under development and numerous parts of the city (CBD and Non-CBD) are benefiting from attractive capital appreciation gains simply as a result of the city’s natural development and/or regeneration.
However as with all Investments, there are always two sides to a coin; residential developers have been on a development spree for the last few years and “rental unit competition” is an issue. At any single point in time, there is constantly an available supply of 100+ rental units in an area and very often in a single condo there can be 10+ available units for rent. This creates the issue of “Void” (empty un-rented unit); this is simply because potential tenants are exposed to an overwhelming amount of choice. “Void/Empty Periods” can quickly reduce potential Yields and make a buy-to-let property unattractive.
In this article, we will explore 5 tips that will allow you to “avoid the void” and select better buy-to-let opportunities. These 5 tips will have two main themes notably, Selection and Marketing.