Renting your property in Koh Samui
You may well have bought your property in beautiful Koh Samui because it’s a place that you want to spend time yourself. On the other hand, you may have spotted the investment potential from the stunning array of properties on the island. If you bought for your own pleasure but have decided the time is right to rent out your home for part of the year, or if you solely bought to generate rental income, then you should know how to get the most from renting your property. Here are a few hints and tips to help you on your way.
The Koh Samui property market is immature and growing fast with great investment potential. There are opportunities for both healthy capital gains plus rental returns from holiday rental and long term letting. Generally, it is the revenue generated by an asset that determines its value and a property with a proven track record of rental income (accounts, receipts etc.) can often achieve a higher asking price. However, note that it is difficult to provide official market data as so many properties, especially villas, are ‘sold’ through the sale of companies in Thailand and these real estate transactions are not recorded at the land office.
If you buy to rent out then you need to think of your property as a business. Profit has to be one of your primary objectives and you shouldn’t get carried away and fall in love with a certain property – Return on investment is your game and don’t lose sight of it. Of course, if you fall head over heels for a delightful villa with an awesome view and it has an excellent track record for generating rental income then maybe you should go ahead – but there’s another vital thing to consider before you do so…
Check the sales and management contracts and rules and regulations. Better still get a professional on board to help you make fully understand any restrictions. Your ability to rent out a property may be contractually limited – many developers try to tie you into using a particular rental management company or they attempt to get you into a rental programme. 
Renting out your property if it’s your own holiday home that you use for a few weeks or months a year is another matter but many of the above points still apply. Everyone who enters into the rental market should consider the design, decoration and furnishings of the property – try to keep a balance between aesthetics and durability and don’t get too personal in your tastes. Also, take into consideration taxation of the rental income. You need to pay Thai income tax on declared rental income. See for more details on property taxes.
Finally, if you rent out a new property then you can no longer market the property as ‘new’ if you decide to sell up. Renting a property out for a year will create more wear and tear than if it’s being used as a holiday home.
Whether you’re in it for the business, you’re just looking to generate a small income which enables you to live out your retirement in style or you want a holiday home that pays its way, then many opportunities exist in the Samui property market.