Phuket is experiencing a very positive response to the private home / apartment rental market. This accommodation segment has only really come to the fore since 2000 when a few intrepid developers realised the potential of Phuket in the international housing market. Phuket has long been a popular tourist attraction and with the recent improvements in the islands' infrastructure, many regular visitors have decided to purchase homes here.
Similarly, many regular visitors who are familiar with the island find that the facilities offered by the traditional hotels or resorts to be somewhat "cloistered" which can often lead to a feeling that as a visitor, you are not able to experience the local culture to the full. With the current upswing in development in many areas of the island, Phuket is becoming known as a destination where you can take advantage of renting a privately owned home.
There are a number of considerations that need to be taken into account before considering your rental returns.
When considering the options available to you for rental returns, it is most important that you consider what the motivations for your purchase are. If you would like to occupy the home over the Christmas / New Year holiday period, the rental prospects of the home will decrease significantly. This time of year is by far the most lucrative period for holiday rentals, which yield the best returns.
If you are purchasing the home as an investment property with the view to owning the property for a few years whilst trying to minimise the expenses and eventually sell the home for a profit, the returns under these circumstances can be extremely attractive.
Owners who are willing to maintain a level of flexibility in their occupation will do well when trying to minimise the expenses associated with a holiday home. Should you wish to use your home, you may do so as long as the necessary notice periods are respected. Should the home be available and you would like to visit at short notice, this is, also possible.
Setting up your home for rentals
There are a number of important considerations when setting up your home for rental purposes. Keep in mind that you will be opening the home to total strangers and careful thought should be given before costly purchases are made. Please refer to the sample inventory and handy PIPS tips.
For a complete version of the property rental in Phuket, please stay tuned.
About the Author
Allan Mossop, with a background in International hotels, has been Managing Director of Phuket Island Property Services since 2001. Being at the forefront of the property management, rental and furnishings markets, he has advised many of the Islands Owners to maximise their investment properties potential.