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Oukiva

New Renting Contract Law from May 1st 2018

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Oukiva

Hi. I already read about that rumour somewhere but can't find it again. Maybe another forum...

So now it's official, and/but concerns only "leasing business" that rent at least 5 apartments.

See http://tilleke.com/resources/new-contract-controls-introduced-residential-property-leasing-businesses-thailand-0

where they made this useful PDF about the new renting contract law.


See also http://thailandproperty.news/new-rental-law-start-may-1 that made a good summary of consequences.

Quote

 

In summary, ThailandProperty.News notes the following important points.

  1. This new legal development will only apply to residential property landlords with five or more properties. Given the passion for property investment in Thailand, we know there will be a considerable number of Thai landlords affected by this development.
  2. As a tenant you should request an English version of your tenancy agreement, even though the need for a Thai language one is specified. If it’s a translation, remember that it will only be as good as the translator’s skills.
  3. Landlords are prevented from charging more for basic utilities than they actually cost.
  4. Landlords can only request one-month in advance rental payment and one-month as a security deposit. Currently almost every rental requires two-months as security and one-month rent in advance.
  5. Wear and tear cannot be used as a reason to not return any deposit, which also must be returned within seven days.
  6. Even when signing a one-year agreement, or longer, tenants have the right to leave giving 30 days’ notice. No more “take over my lease” listings in these cases, we think.
  7. Landlords can still inspect their property during an any rental period, but not without advance notice.

As with any property rental, ThailandProperty.News suggests you either (a) obtain legal advice before signing a legal rental agreement, or (b) ensure you fully understand the legal implications of any documents you sign.

 

Edited by Oukiva

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Jackie2013

Seems like good news for us that rent. Not sure how hard it will be enforced though...

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peter.storm

I am a landlord and it seems that this will make it less attractive for foreign landlords to let property in thailand. 

all contracts need to be in thai to be legal

usually it is only thai landlords that charge more for utilities.

I am pleased to be out of the game.

good luck tenants getting you deposit back and being treated fairly!!!!!

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js89

Actually, I think this is very good. It's really only likely to affect the professional Thai landlords that cater to the general population. Most expats are sensible enough to read their contracts and negotiate. My rental agreement is pretty reasonable and contains no really abusive clauses as I deleted them during contract negotiation, although it does have a two month security deposit clause. At the time I rented, it was standard practise and I negotiated a two month break-clause in exchange for the two month deposit. It's a minor technicality, but at least it means I cannot be pursued in court for the balance of the lease contract if I want to leave before the lease expires.

One of my exes rented a one room, typical Thai apartment a few months back. When she let me read the rental agreement after she got her first shock bill, it was already too late. It was a really abusive agreement, making the tenant responsible for normal wear and tear and having other unreasonable clauses. She was charged the utility price + 80% for electricity. She didn't know this when moving in (because she didn't bother to ask). There were also other frivolous charges, such as a 300 baht charge per month for supplying a refrigerator, a charge for cable TV which she did not use since she didn't have a TV and a "service charge" of some description

After her first month's bill, which added about 35% or so on top of her rental fee, she freaked out and went to find another room, giving up her deposit. I think these are the type of people this new law is intended to protect.

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KittenKong

Farangs complain about the many scams in Thailand, and rightly so, but it all pales into insignificance when you look at the number of Thai on Thai scams, most of which happen because the victim is simply too lazy to check the details of anything before leaping in with both feet forward and both eyes closed. I do find it hard to have much sympathy for them.

Thai Rak Thai (Thai love Thai), my arse.

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Larssonn
22 hours ago, peter.storm said:

I am a landlord and it seems that this will make it less attractive for foreign landlords to let property in thailand. 

all contracts need to be in thai to be legal

usually it is only thai landlords that charge more for utilities.

I am pleased to be out of the game.

good luck tenants getting you deposit back and being treated fairly!!!!!

that +the amount of chinese / half chinese owners beeing even worse .......... deposit back 0% chance and write thai contracts for foreigns will be like asking them to sign a contract while beeing blind .

gonna step out of the game aswell .

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Oukiva

Hi. The deadline is in one month only...

One of important points is that now "everyone" seems to agree that this new law will apply to new rental contracts - of course - but also to currently running contracts; They will then need an amendment and concerned owners may have to payback excessive deposit and reduce inflated electricity or water charges. Interesting to see how this will happen... :unsure:

BTW An article posted last week and that I think is a good summary on the situation : Thailand’s new residential lessee protections (part 2)

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david555
2 hours ago, Oukiva said:

Hi. The deadline is in one month only...

One of important points is that now "everyone" seems to agree that this new law will apply to new rental contracts - of course - but also to currently running contracts; They will then need an amendment and concerned owners may have to payback excessive deposit and reduce inflated electricity or water charges. Interesting to see how this will happen... :unsure:

BTW An article posted last week and that I think is a good summary on the situation : Thailand’s new residential lessee protections (part 2)

I think this will become self regulated as on market those prices shall be different from the "goodie owners " to the still "naughty " ones ...

Now only need a regulation on the farang R.E.agents..oh sorry i mean "Consultants "as that is only allowed worktitel :P

Edited by david555

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