Property Management & Return on investment

Most of our clients are buying property with pure investment purposes. With 6 years experience in property management and property development in Koh Samui we would like to share our knowledge with potential Buyers in order to give some understanding of figures for future return on investment and after sale services.

Standard fees that are going to be charged by the management company may have different ways of presenting it but basically can be broken down into 3 parts and will stay around the level of 30% from your rental income (1+2) plus fixed monthly fees (3).

1.      Marketing fees. Marketing fees will allow you to maximize your future income through the largest audience of potential tenants. These fees includes agency and booking platform’s commissions for advertising your property, check in - check out, concierge and internal accounting services.

2.      Variable expenses such as laundry & cleaning services, utilities and miscellaneous expenses are also linked with frequency of your rentals.

3.       Fixed monthly management fees will cover maintenance of private swimming pool & garden (if any), PEST control treatment, internet & TV package.

Some of the developments will have compulsory maintenance fees which covers maintenance of public areas. In return to higher fees it should add your property a competitive advantage of having such facilities.

In our experience:

-          Nowadays you are looking at the average rate of ROI at 3 to 12% depending on the location, style of the villa and available services and facilities.

-          New build, modern sea view villas or villas in the walking distance to the popular beach areas are having definitely more chance of making higher returns.

-          Buying a villa in off plan projects or at the early development stage will give you higher property capitalization and higher ROI due to often lower initial price offers. However you should be well aware of developer’s background and capabilities.

-          Some of the projects in Koh Samui offering guarantee return on investment of 10% for 10 years. To look into this options please inquire us.

Sun Way Samui will be happy to share our vision of future rental returns on each particular property you may be interested in and provide ROI estimation.

To see the list of properties under the management of Sun Way Samui please visit SWS Exclusives directory on our website.

Contact us now by email sales@sunwaysamui.com or call (+66) 89 66 23 569 (WhatsApp available).