Key money

[Thai Visa Express]

Is this a one off payment or do you pay it yearly ?

[Mavrick]

I think Whitespider is the right man to explain this as I saw him posted it before but I couldn't find the thread to link it.

[Thai Visa Express]

Same here i cannot find it neither Scumbag may help he is knowledgeable on these matters.

[gogo dog]

It's paid each time a new lease is negotiated/agreed.

[Mavrick]

Have a look at this thread.

Edited January 18, 2009 by Mavrick

[Thai Visa Express]

Thanks so not every year ?

 

I just got offered a place with key money of 200,000 plus rent of 10 k a month, my wife seemed to think you paid your rent monthly and key money every year.

 

Lost in translation is the term so basically its a one of fee ?

 

If i take 3 year lease i pay it then when it is renewed they expect a further amount so basically the longer the term the better ?

 

Regards Paul

[Thai Visa Express]

Have a look at this thread.

 

 

Cheers

[Cerberus]

It means your true rent is 15,555 per month, not 10,000. Depending on the location and size of the premises that could be considered very high! With power and water you could be looking at 18,000 Baht a month

[Aussie Bernie]

Thanks so not every year ?

 

I just got offered a place with key money of 200,000 plus rent of 10 k a month, my wife seemed to think you paid your rent monthly and key money every year.

 

Lost in translation is the term so basically its a one of fee ?

 

If i take 3 year lease i pay it then when it is renewed they expect a further amount so basically the longer the term the better ?

 

Regards Paul

 

Apparently the landlord does not pay tax on key money. The rent is lower to allow for it.

 

I know of one place in Phuket where the rent for a small shop is 4,500 baht per month plus 42,000 baht key money every January. They have a 3 year lease.

 

Get the key money thing clarified in writing by the landlord or you could end up paying that every year.

 

In 3 years time and if you have a good business, the landlord may ask for a lot more key money.

[Thai Visa Express]

Thanks it will be leased in a Thai name my wifes.