How Do You Rent a Property?

Discover the essential steps to rent a property successfully. Learn about the legal requirements, tenant agreements, deposit protection, and more in this comprehensive guide to property rental.

If you want to rent a property for the first time or have done it before, you have to follow over 145 rules and laws. These laws can change often, and if you’re not careful, you might break them without knowing. That’s why it’s really important to keep yourself informed about the latest rules.

Here’s what you’ll need to know if you want to rent a property

Hand holding a key with a house-shaped keychain in front of a property

Why Should I Rent a Property?

People often choose to rent a property for various reasons. One common motivation is financial gain. Maybe they’re living elsewhere temporarily and don’t want to sell their property. Renting it out helps cover the mortgage and adds extra cash flow. Others may see it as an opportunity to start a business and build a portfolio of rental properties.

How Can I Rent Out My Property?

For Rent sign in front of a property

You have two options: manage it yourself or hire a letting agent to handle everything. When you decide to rent a property, you also need to consider how to offer it. You could rent it as a single unit or divide it into multiple units, like a House in Multiple Occupation (HMO). HMOs can potentially bring in more rental income, but they also require more upfront investment to convert the property and additional responsibility to manage.

What is a Landlord Licence?

A Landlord licen is when landlords get a licence for renting out their properties. The goal is to make sure landlords manage their properties well and keep them up to standard. If you want to rent out a property in Thailand, you still need to follow some important rules. These might include making sure your property is safe, creating rental agreements that follow Thai laws, and paying any taxes you owe.

Depending on where your property is, you might also need to register with the local government or get special permission, especially if you’re renting to tourists or for short periods of time. It’s really important to know the rules that apply to your specific situation in Thailand. If you’re not sure, it’s a good idea to ask someone who knows the laws or talk to local authorities.

Landlord licensing sign with keys on a table

What Are Tenancy Agreements and Deposit Protection?

Tenancy agreements are contracts between landlords and tenants that say what both parties need to do when you rent out a property. They include things like who the landlord and tenant are, how long the rent lasts, how much the rent is, and the rules for living in the property.

Deposit protection is when landlords have to keep a tenant’s deposit safe. In many places, landlords have to put the deposit into a special scheme approved by the government. This keeps the deposit safe until the tenant moves out. Then, if everything is okay, the tenant gets their deposit back. This helps make sure tenants don’t lose their deposit unfairly when you rent out a property.

Handing over keys for a property rental

What is Landlord insurance? & Why? 

Landlord insurance in Thailand is a type of insurance that helps landlords who rent out their properties. It covers things like damage to the property, loss of rental income, and legal costs if there are disputes with tenants. It’s important for landlords to choose the right insurance to protect their rental properties.

It is important because it helps protect landlords from financial losses that can occur when renting out their properties. Without insurance, landlords could face significant expenses if their property is damaged, if they lose rental income, or if they encounter legal issues with tenants. Having the right insurance in place can provide peace of mind and help landlords manage risks associated with renting out their properties.

House with a "For Rent" sign in the front yard

Learn More About Renting Out a Property

A letting agency can help landlords who find property management too much to handle. If you’re new to renting out a property, there’s a lot to take care of before and during a tenancy, and you have many responsibilities to your tenants. That’s where Ourvillas comes in with our full management service. With this service, a dedicated property manager takes care of all communication with the tenant, including arranging repairs and replacements.

Frequently Asked Questions

How do I find tenants for my rental property?

You can find tenants by using websites, and social media, asking friends, or getting help from a real estate agent. Make sure to check potential tenants carefully.

What should be in a rental agreement?

A rental agreement should include names, rental period, rent amount and when to pay, deposit, rules for using the property, and what to do if there’s a problem.

What do I need to do as a landlord?

You have to keep the property safe and fix things when they break. You also need to collect rent on time, give tenants privacy, and follow the law.

Should I get help to manage my property?

It depends on how much time and knowledge you have. A property manager can find tenants, collect rent, and fix problems, but they’ll charge you for it.