In dealing with clients, renters, and sellers, you must be aware of the different terminology and facts that are pertinent to any such deal. This discussion will entail defining such parameters and clearly showing you why our company can succeed where others fail.
What is a Rental Guarantee?
A rental guarantee is a property investment opportunity where the seller offers a guaranteed Return on Investment (ROI) to the buyer for a defined period of time.
For example: An offer for a 1-bedroom condominium worth 3,000,000 THB is purchased with a rental guarantee of 6% for five (5) years. This means that the seller is bound by contract to pay the client (buyer) 180,000 THB (6% of 3,000,000 THB) every year for the next five (5) years as written in the contract. Therefore, after five (5) years, the buyer has earned 900,000 that is a 30% gross return on the investment. There would be some deductions due to maintenance and property management fees, to calculate net profit. The buyer still controls the property and can continue to resell, rent, or use it for their own personal use at the end of the agreed period.
The conclusion is that the buyer's 3,000,000 THB was active and not dormant. It was properly invested and generated a positive return. The rental guarantee provided an opportunity different from others in that the ROI is fixed.
Why use rental guarantees?
Most clients use their money in real estate figuring in averaging monthly rental rates and calculating it on a yearly basis to see the maximum value of their investment, then subtract all the other expenses to find the ROI, that is possible from their initial input. The issue is the failure to see the work and experience it takes to have the property managed efficiently to ensure complete occupancy, because every month without a renter becomes a lost opportunity and income. There are risks in getting a profitable return which can be controlled by proper management and appropriately directed work. The rental guarantee, for an agreed period, allows property investment to become painless, as there will be stable cash flow and an ability to maintain liquidity of assets during said time period. After the rental guarantee expires, you can either manage the property yourself, resell, or have another agent take over.
What are the disadvantages of investing in a rental guarantee program?
As with any other endeavour, there must be a downside. A property investment is not realized until said property is sold. This can be your advantage if you invest in the correct property and the value increases thus making a return from the rental guarantee and in addition from the increase in property value. Another disadvantage in a rental guarantee program is the fact this limits your access to your property or prevents your access during the agreed period. The party responsible for the rental guarantee gains control over the property to ensure it is generating the income to pay you the rental guarantee. Finally, just as in a time deposit, a Rental Guarantee Program will grant you peace of mind with the agreed upon return. It is very important to be clear whether the Rental Guarantee Program can be transferred to a new owner if you would like to realize your investment immediately.
Why we can guarantee rental income?
When evaluating the proficiency of any company within an industry, there must be an examination of the different aspects of the company.
The first level is time within any field of endeavour. The durability of our company within the market for the last eight years demonstrates our hard work and determination. The personal management team is experienced in rentals, maintenances, and improvement of properties thereby making the situation painless and profitable for the investor. The team has established a firm hold in this niche of the market segmentation.
Second level, our sister company, Pattaya Sunny Rentals, www.holiday-rentals-pattaya.com, who will manage all rentals has over 150 properties in their portfolio. This proliferation of units is evidence in the success and dedication of the system created. If the system were not successful, the investments would reflect such. Having a growing portfolio and clients further demonstrates the capabilities of the company.
Third level, within this paradigm, being a Western management team is a significant advantage, incorporating modern and innovative techniques for maximum profitability. What truly separates our company is the diverse and fluid perspective of a foreign investment team in a static local market.
Finally, the proof is in the pudding as the corporation is a self-sustaining and ever-growing company within a challenging and growing industry. The offers provided are realistic within market dynamics and reflect a pragmatic and viable time of rental guarantee. An important word of caution is that one must be careful of extreme returns and long periods as they are unrealistic and not attainable for the duration such as 10% return for a ten-year period. The validity of such a high return over such a long period cannot be predicted soundly and could be characteristically compared to Ponzi schemes, where entry of new applicants sustains the old applicants. Our offer is realistic and sincere, reflecting our experience within the market. The mathematics of the situation demonstrates that this is a valid offer.
With all these in mind, you are now aware of how a Rental Guarantee Program works. Now, you can take advantage of this great opportunity.