With the number of condos and apartments increasing on the Cambodian market, especially in Phnom Penh, and a possible rebirth of Sihanoukville could be on the cards with the new strategic plans and inbound travel options rebounding, the rental market might be an area worth looking into - we have tried to bring some contemporary advice and tips into renting properties in Cambodia in 2024.
Managing Expectations in The Cambodian Rental Market
It’s important to have a checklist of qualities you look for in potential tenants, but don’t set unrealistically high expectations for them.
Every tenant has their own personality and needs and comforts - so, ideally, look for someone who’s willing to be cooperative and who also has consideration for you and your property and time!
Find out their needs and let them know yours and lay out what you expect from them and ask them what they expect from you - this will help set up some boundaries and expectations and means it could result in a healthier relationship. And if you do run into problems, at least you know who’s liable and what the process is.
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Clearly Explain All The Rental Costs And How To Pay
Most rental rates are exclusive of extra monthly charges such as maintenance (mostly applies to condos), waste collection, gas and water rates, electricity bills, etc.
These should be established in the rental contract before the owner and tenant sign. It also helps to walk the tenant through means of payments, so much now in Cambodia is possible via the banking apps, and in Phnom Penh at least but also in other urban hubs, you can pay the water, electricity, and almost all utility bills via the apps.
The same applies to the rental fees which can be paid bank to bank via relevant apps at ease and immediately. Establishing clear payment dates and exchange of information are important. Telegram and WhatsApp have also become more common as a way to communicate between tenants and landlords.
As a guide, although these vary from each Sangkat to the next and depending on the property, electricity can be from 1000 Riel / USD $0.25 per Kilowatt, USD $2-5 per month for water charges & trash collection and additional fees for cable TV and broadband connections (if included) might need to be applied.
An increasing number and range of nationalities are also moving to cities like Phnom Penh from the region and internationally due to the opportunities and in some cases geopolitical displacements. Using language apps can be useful to communicate with each other if there is no common language.
Finding Good Tenants In Cambodia
Finding the right tenant can be a daunting task but there is nothing worse than having a bad tenant so putting in some groundwork or hiring an agency to deal with tenants might be another alternative solution.
Renting an apartment might be a viable option if the property market is slow, and especially as we enter the slower tourism season, there could be digital nomads and other short-termers looking for an alternative to hostels and hotels.
Mid-year is usually the one of the seasons in which international schools have their longest holidays and some foreign teachers could be leaving these shores, while others with holidays as long as 6-7 weeks might be looking to sublet their rentals or making decisions to change locations.
What Responsibilities Does the Landlord Have In Cambodia
Although not a legal requirement, as a landlord you could try to get background information about the potential tenants but very few would do this in Cambodia.
Meeting the tenant more than once to establish their character is highly recommended though and allows you to evaluate whether you’d have a good dynamic as landlord and renter.
What is their profession, their family situation, is it their first time renting in Cambodia (how much hand-holding will they need) etc?
If they’ve never rented a property before, you can try to get their employer as a reference so you can investigate their credibility and capability to pay rent.
You should also try to be upfront about noise issues or possible construction (which is one of the biggest sore points in the cities) and maintain an honest relationship with your tenants.
Once rental agreements are signed, it's advised to do a walkthrough with the tenant and record any major snags (flaws, scratches etc) so both parties are in agreement, photo evidence is always handy as it can be time-stamped and shared between the tenant and landlord.
Advance Payments On Rent
Not all tenants will be willing to pay advance payments and deposits for yearly rental agreements in Cambodia so you will need to negotiate a fair deposit in advance with 4-8 weeks being pretty standard for a one-year lease.
Having tenants pay in advance gives property owners some sense of security that if the tenant is not able to meet monthly payment deadlines, or if they damage the property, the deposit can be used to compensate for their neglect or carelessness.
Although an unwritten agreement, it's quite common for the deposit to be offset from the tenant’s last month's rent payment once notice is given in advance but this should be clarified in the contract or once trust is established.
Foreigners Present in Cambodia System (FPCS)
The FPCS was introduced in Cambodia by the General Department of Immigration to record data on foreigners living and visiting the Kingdom in 2020, and it is the responsibility of the owners of hotels, guesthouses, condominiums, and houses/condos to complete the app or online about foreigners staying in properties.
The FPCS app can be downloaded and once the tenant has been registered you should share the screenshot of the completed registration on FPCS and keep it for your own records
You could also ask for a copy of the tenant's passport, and if they are non-Cambodian, check they are legally working and residing in Cambodia. The last thing you would want is to hear of a hasty exit from the country for violating their visa and work permit obligations and start the process again of finding a new tenant!
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