I'm looking to connect with someone who knows about Cambodian ownership laws and maybe some small guesthouses for sale near a beach.
Paul
Hi Paul,
I work in real estate, therefore, as a foreigner you can lease property/businesses with no legal issues attached. If you actually want to own the property, this is somewhat more complicated because foreigners can not own land or property on land.
In the case of a guesthouse, you will be either buying an existing business and taking over an existing lease or in some cases obtaining a new lease, things you need to look out for, are as follows:
The rental price - make sure it is competitive, if its too high it will cannibalise your profits.
The security deposit - typically it will be 1 months rent per number of years of the lease. i.e. 5 year lease - 5 months deposit. In some cases for larger properties, especially hotels the security deposit could be a lot higher.
Lease term - always try and get at least 4-5 years term on a property with an option to renew for a further 4-5 years, the following term could well be subject to a rent review.
Make a full intinerary list of all movable goods and assets, because later, you don't want the owner saying there was 20 sets of tables and chairs, when in reality there was only 6, take photos.
Before signing the lease make sure everything is working and in good order, especially aircon units and pumps for swimming pools.
Make sure you have the correct business licences, get insurance cover, follow Cambodia Labour laws and don't do anything that offends the country, King or Religion.
I trust this helps.
Naim Khan-Turk
Hello Naim Khan-Turk,
Thank you so much for responding to my query. My wife and I are planning to retire soon to SE Asia. We have been looking at Thailand and the Philippines. Thailand has similar land laws as Cambodia. The Philippines, so far, is a better location being that my wife is a Filipina. I'm trying to look at all options, but we are hoping to purchase a small guesthouse rather than leasing.
If further questions arise, I will contact you directly.
Thank you again for the information.
Paul
Hi again Naim Khan-Turk,
I'm not on Facebook or LinkedIn, so I'm hoping you can send me your email address.
My email address is:***
Paul
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it will be easier for you to buy and own a property in the Philippines as your wife is from there. If you were to go into a business deal with someone other than your wife you could only own 40% of the business. I hope this helps, as this was the information given to me when I looked at a business in the Philippines.
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