Stephen Krause is an American expatriate, real estate professional and an owner and operator of Bangkok Finder; one of Bangkok’s top real estate agencies. Bangkok Finder has been connecting with home-seeking expats in Bangkok for over eight years, growing inventory, writing contracts, transferring properties and consulting with clients who are new to, or seek advice on international property investing. We asked Krause a series of questions, picking his brain for any information and advice he has for our readership, which essentially includes everyone involved in real estate; property investors, rental home-seekers and even those who are interested in working in international real estate.
First things first; can you tell our readers a bit about your background and an overview of Bangkok Finder?
Stephen: I’ve been investing in property for over 20 years and internationally for over 10. Five years ago I took over Bangkok Finder and have been working on expanding the company ever since, while still remaining a Bangkok-only agency. Because our properties are not spread out all over the country we know the landscape of the city extremely well; soi by soi. This has transferred into a deep understanding of the market and a wider breadth of inventory for our clients. You could say we’re Bangkok property experts for expats.
Let’s talk about these expat clients. If you’re looking to buy or rent a place in Bangkok, what kinds of things should you be conscious of during your international search?
Stephen: It’s very important for expats to understand that, (typically) unlike their home country, there are no laws in Thailand requiring agents to have a real estate license.
This means there is no guarantee that the agent you are working with is employed by a legal, registered company. My advice is to always do your own due diligence and really think through the decision before you commit to anything. Make sure that whoever is showing you around is working for a registered company, has experience (they will know the landscape very well), has a wide range of inventory, negotiation skills, and can tell you whose contract you’re signing. It could be the owner’s or the agent’s.
What are the differences between renting an apartment in Thailand versus renting in a Western country?
Stephen: Well a lot of it is the same as it relates to the security deposit and responsibilities, but the differences in language and culture can create false securities for the tenant. Do not assume landlords will operate the same as in your home country. The key in Thailand is to get it all in writing on the contract, from the length of the agreement to a statement saying what the owner needs to do before moving in. This will always best serve the client and a good agent will make sure this gets done properly.
What are some other things that must be in writing?
Stephen: When you sign a contract it should contain these things;
1. The rental term. You should know this and understand the length of time the contract is good for.
2. The rent. This should be ver y clear on the contract but make sure you know it in words and figures, and learn how to say the amount in Thai.
3. The secur i ty deposit. The amount should be clearly stated and it needs to be understood what the landlord considers to be damage made by the tenant and what the penalties are for breaking the contract early.
4. Responsibilities of the tenant. This includes what the tenant is taking on when signing the agreement such as how the bills are paid, the policy for repairs, that broken items will be taken care of by the landlord in a certain period of time, etc.
5. A statement that the agreement is governed by the laws of Thailand.
What tips do you have for someone who’s interested in investing internationally?
Stephen: Again, as cultural differences can make the process less fluid, try to find someone to help you, who you can easily communicate with, is knowledgeable about the international market and seems trustworthy. This is key because you’re going to have to work with someone to transfer paperwork at the land office regardless, and when you’re unfamiliar with international laws and regulations, things can get tricky.
What are the pros and cons for expats and anyone interested in investing internationally?
Stephen: Investing in property tends to feel very natural for expats because most people living abroad already own a property back home or know someone who went through the process. This degree of comfort often transfers over as expats seek out property investments here in Thailand. With the right landscape and knowledge, owning property in Thailand can be a strong pillar in one’s investment portfolio. There are benefits for tax, cash flow, property appreciation, as well as a strong sense of diversification when correctly investing internationally.
This being said, investors must be aware of the differences that foreign markets bring as well, such as construction standards, general economic market conditions, currency fluctuations and other ‘landmines’ that often get over looked when expats pour money into a promising market.
