EXCLUSIVE: A new initiative which aims to help to clear the oversupply of Bangkok property rentals has been launched that allows tenants pay just a one month deposit, plus a one-time insurance fee, before moving in.
Currently most Bangkok property rentals will require a deposit equal to two months in addition to one month as a security deposit prior to moving in.
A new rental law was introduced in May and impacts residential rentals where the owner has five or more properties, but that law is currently being challenged in Thailand’s Supreme Court and appears to be largely ignored.
As well as a one-month deposit PropaChill, which is part of the real estate website Prop2Morrow, also requires tenants to pay a one-time fee for insurance coverage – but it adds that up to half of that fee will be returned upon completion of the rental.
The service is being aimed at Bangkok landlords who own multiple properties as well as tenants who may be relocating to Bangkok as part of their work.
The package for tenants includes cleaning and maintenance services, and other incentives such as mass-transit tickets.
PropaChill had a low-key launch of its initiative in May, and after comments from landlords has tweaked its offering and is now embarking on a publicity drive.
Chanokporn Suwanposri from PropaChill told ThailandProperty.News: “We enable landlords to easily find tenants, and tenants pay less for their Bangkok property rental.”
“Landlords or real estate agents who list their properties on Propachill will pay nothing, while tenants pay one month of rent in advance by credit card or by cash transfer, and a one-time service fee proportional to their first month of rental.”
She added that once the lease is verified the advance will be transferred to the listing owner.
Reinforcing the company’s focus on relocations, she said: “Companies that provide housing to their employees can also lower their costs.”
“We oversee the contracts, property protection as well as card payments while offering plenty of rewards and cashback offers.”
The brainchild of real estate platform Prop2Morrow, Propachill is the first real estate firm in Thailand to operate Bangkok property rentals without the need for a significant outlay in advance.
Chanokporn added: “By partnering with Bangkok Insurance, Digital Butler, Seekster and Fixzy, Propachill hopes to ease the burden for Bangkok renters of having to pay a huge lump sum at the outset, and also assures landlords and real estate agents that their property rentals are in good hands.”