For newcomers in Phuket, finding a place to live can be a daunting task. First, you have to try and figure out which general area fits your wants and needs best, narrow it down to a neighborhood, and then actually start looking at properties. When you finally find a place that feels like home, you’ll then have to negotiate the terms of your lease. This is where it can get tricky. Maybe it seems like the perfect spot at first, but will it stay that way? Perhaps the price is great, but are you willing to take the risk on a longer lease to lock in a good price? Like anywhere, there are both advantages and drawbacks to consider before signing a lease. Let’s take a look at some questions to ponder before signing that lease.

Pros

As one might suspect, what motivates most to consider a long-term lease is the potential to lock in a better price. In the last 5-6 years, rents in certain areas of Phuket have doubled or even tripled. Will this happen again over the next 5-6 years? It’s hard to say, but it’s highly likely the rates will increase to some extent. While it might be difficult to commit to a multi-year lease, the upside is that there’s the possibility of including a subletting option on the lease. Alternatively, it’s likely that the landlord will be ok with breaking the lease early since they can probably fetch a higher rate compared to when you signed the lease. Negotiating the payment frequency can also get you a better rate – landlords typically prefer to have 6-12 months of rent paid at once.

Another bonus of a long-term lease is the possibility of settling in. For expats, this can be more important than expected, especially for those who see themselves living here indefinitely. Knowing you’ll be in one spot for a while enables you to meet people, make friends, and actually become a part of the community. It also gives you the opportunity to set your place up the way you like it, whether it’s painting your preferred color or landscaping.

One last benefit of staying put is that you won’t have to update your address with immigration, banks, etc. Your address is important for many things, like visas, a driver’s license, insurance, and more. Depending on your visa, you may be required to confirm your address every 90 days, something that is simplified if you stay in the same place.

Cons

While the pros of long-term leases might sound compelling, there are significant downsides as well. A common one is negligent landlords. Knowing that you’re locked into a legally binding lease can make some landlords complacent. They may respond slowly, if at all, to problems in your home.

Another potential drawback is changes in your neighborhood. Phuket is a rapidly developing island right now, so it is dynamic in many ways. This could be anything from new neighbors that cause problems to disruptive construction projects. New projects, sometimes huge with powerful backers, can completely upend neighborhoods, and there are several public cases of this happening now. Construction of these projects can be quite disruptive and last for years, and the area will never be the same again.

Lastly, and while this is an issue inherent to renting in itself, renting doesn’t have the economic benefits of buying. Buying a property in Phuket comes with its challenges, but for those planning to stay in Phuket for many years, property ownership may offer financial advantages that renting cannot, particularly in areas where property values have appreciated steadily over time.