Interior decoration makes a difference

Interior decoration makes a difference

Competition in the market to rent out condominiums to expatriates has been increasing as the supply in preferred expatriate locations rises and the growth rate in the number of expatriates slows.

With more owners looking to rent out their units, interior decoration can give a competitive edge, making a unit more attractive than others in the same building or in other competing developments.

Foreign tenants usually have a fixed budget and decide on where to live based on location, usually Sukhumvit, Lumpini or Sathorn, as well as unit size, layout, building facilities, and the quality of common areas.

Developers usually hand over fitted but not furnished properties even though most expatriate tenants in Bangkok require furnished units. Interior decoration grants individual owners an opportunity to distinguish their properties from competing units.

Owners want their properties to appeal to a wide range of nationalities, much like hotel rooms. The standard requirements are for beds with mattresses, a living room set with a sofa, armchairs, and a coffee table, as well as a dining room set of a table and chairs.

While most developers hand over units with some kitchen appliances, buy-to-let landlords may still need to add a clothes washer and dryer in additional to a microwave oven.

The furniture does not need to be of the finest brand names but it does need to be durable. It must also be easy to clean and it should allow for maintenance. Moreover, all soft furnishings should be replaced every three years.

There is an old saying that goes “kitchens and bathrooms rent apartments”. This still rings true today. New condominiums come with standard kitchens and bathrooms, but sellers of older second-hand properties should consider a complete renovation of dated kitchens and bathrooms, so that they may compete with more modern developments.

One mistake that some buy-to-rent condominium sellers make is that they neglect to regularly redecorate. Generally, all hotels go through some level of renovation every five to seven years; and the same is necessary for rental properties.

A major renovation could involve new kitchens and bathrooms, but repainting and replacing of soft furniture is nonetheless required every three years with touch-ups for every new tenant.

Presentation is essential and it can make a difference, and for many, first impression matters. The condominium needs to be spotlessly clean to impress prospective tenants. Owners may even want to consider providing one set of bed linens and basic crockery, cutlery, and glassware as properties with made-up beds and a dining table set is perceived more favourably. That is why show units in developer’s sales offices are fully decorated and furnished.

When a tenant vacates a property and owners start looking for a new tenant, they should ask themselves whether they themselves would want to rent the property as it is, or whether it needs improvement.

They may also benefit by looking at new developments that have recently been completed in order for them to see what the competition is offering, and in turn, allow them to assess what they need to do to compete.

Decoration and furnishing can give individual owners a unique selling point when they want to lease out their properties.

Likewise, it is also important for owners to support the condominium’s property management in carrying out renovation and improvement projects in the common areas.

Obviously, this will be an additional expense, but poor common areas are often the weak point for older condominium tenants who want an impressive lobby, well-finished lifts and welcoming common area corridors. 


Mr Theerathorn Prapunpong is director for residential leasing services at CBRE Thailand and Ms Tornbonkot Patcharaprakiti is senior analyst at CBRE Research & Consulting, CBRE Thailand. They can be reached at bangkok@cbre.co.th Facebook: CBRE.Thailand Twitter: @CBREThailand LinkedIn: CBRE Thailand and website: www.cbre.co.th

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