To engage in the property business, such as houses, condominiums, office buildings, and investment property, has pros and cons. However, investors are interested in such investment as it is considered that “Property for Rent” can generate long-term returns better than other investments because it is the passive income where you do not need to take any effort.
However, investors should understand and must study “Property for Rent” seriously to receive worthwhile and legal yields, for example, condominium for rent, and investment property (IP) for rent, as follows:
Condominium for rent: It should be careful about laws, including the law on leasing, rules of projects, screening process of tenant background, such as a stable financial position, ability to pay monthly rental fee under the agreed contract, behavior of drinking alcohol or smoking, etc.
These are the common rules of each project that can cause you trouble later. This includes some law that you cannot perform, which is to lease a condominium unit on a daily basis, as it is against the hotel regulations, stating that a building or any part of the building leased for residential purposes on a daily basis shall be considered the hotel which requires the hotel registration. In the case of a condominium project, it shall not be registered as a hotel.
Meanwhile, investment property is considered a new type of investment designed specifically for investors at CISSA GROUP Company Limited, the property developer with expertise in the Phuket area. Buyers will own the “title deed” with a clear ownership. It can be resold like houses and condominiums and can be leased daily because CISSA GROUP owns 4 buildings, D, J, K, and L, which are the property of the Company that is initially granted permission to be a hotel and authorizes the leasing company (CNH) to be the management. The remaining 8 buildings totaling 248 units are the condominium building for commercial hotel business, where residents or investors must sign a lease management agreement and a power of attorney to allow CNH to perform the lease management as well.
The condominium can be managed as a hotel because CISSA GROUP held an EIA Board’s Meeting on June 20, 2019, and approved the change from the condominium building for residential purpose to the condominium for hotel business purpose (Approved at the Meeting).
Here is what new generation of investors need to learn and study more to understand how the property you invest in is suitable for leasing. This is to receive the most worthwhile return.
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