The facts you need to know about renting a house or apartment in Thailand: the contract, the deposit, the lease and the legal obligations of the landlord and the tenant.
Thailand has maintained a reputation as being a safe place for foreigners to live. Compared to many Western nations there is less crime against people and property.
Renting property is relatively simple, often with minimal formality in rental procedures. It’s recommended for both parties to have a rental agreement.

Finding a Property
Properties can easily be found:
• with the help of real estate agents
• by checking the property section in the local newspapers and reading bulletins boards

Newspapers
• Hua Hin Today
• Hua Hin Town
• Observer Magazine

Real estate agencies

There are many real estate agencies throughout Thailand, some are members of the Thai Real Estate Association or the Real Estate Broker Association. Make sure that fees do not have to be paid until they have found a suitable property. Most fees are paid by the landlord and not the tenant.

Types of Property

There are plenty of furnished rooms, apartments, condominiums and houses for rent in Thailand. The majority of rental rooms have a bed, television, wardrobe and many come with a refrigerator. Some have a fully equipped kitchen.
It is relatively easy to find a fully furnished house although they tend to be more expensive. Many landlords will be willing to provide basic furnishings on request, including a rice cooker, refrigerator and a bed. However those planning to stay for more than a year or so may find it works out cheaper to buy the furnishings they need and rent a less expensive, unfurnished property.
Documentation

A foreigner renting property in Thailand is usually required to present the following documents:

•A copy of work permit (if applicable) or Certificate of Residence issued by Thai Immigration or Letter of residence from the person’s Embassy certified and translated into Thai
•Passport
•Proof of income (pay slips, bank deposits) must be provided if the landlord asks for them

The Lease

The lease is a contract between the landlord and the tenant. This contract protects both parties involved as it details the terms of the agreement made regarding the property.
Generally, rental agreements last for one year. However the retail period times can vary from a “short time stay” (usually three months) to a “long time stay” (one year).

Within the lease, the following should be clearly defined:
• The monthly rental fee
• How long the lease is valid
• What happens if either party terminates the lease agreement
• All other terms and conditions

It is advisable to have a signed an inventory listing all furnishing, fixtures, condition of rooms for example.
The rent on the property cannot be raised during the duration of the lease agreement; however it is open for negotiation when the lease agreement ends.

Securing the contract

Generally a lease and security deposit are all that is needed to secure property in Thailand. A good faith deposit is paid to the owner to secure the LOI to prevent a potential lease to another party.)

Guarantor
Although not a common practice for renting property in Thailand, the landlord may want the tenant to provide a guarantor who will be named in the leasing agreement and will co-sign that document.

Deposit
In most cases the tenant will need to pay a two-month deposit along with the first month’s rent. It is not unusual for a Thai landlord to request a three-month deposit.
At the end of the lease the deposit is refundable. The landlord will take an inventory and deduct any expenses incurred in repair or replacing damaged items. Assuming that the property and furnishings are in good condition, the deposit will be returned.

Tenancy obligations
The tenancy obligations vary with the type of property that is rented. For example, many of the apartment complexes do not require tenants to pay for water, trash removal and cable television. When renting a house, the tenant typically pays all costs associated with the running and maintenance of the house.

Basic tenant obligations include:
• Paying the agreed rent on the agreed due date
• Paying for water and electricity usage
• Ensuring that the property is not damaged
• Only having the specified number of people living there
• Give sufficient notice when terminating the lease agreement

Note: It is not legal for a foreigner to use his property for commercial purposes.

Sublease
Subleasing/subletting by tenants is generally not allowed. Owners will state in the agreement that subleasing is not allowed. (A sublease is when the tenant leases out the property to a third party who usually pays more than the original rent to the tenant. The tenant makes a profit after paying the owner.)

Terminating a Tenancy
The Tenant: Generally, if it is necessary for the tenant to leave prior to the agreed date they will forfeit their deposit. If it is stated in the lease agreement that the tenant can terminate their contract with sufficient notice (usually a 60-day notice is specified) then they will be able to collect their deposit.

The Landlord: The landlord cannot legally terminate the contract unless the tenant has broken a specific rule that was mentioned in the agreement. For example, if the tenant does not pay rent by the due date or if they use the house for illegal activities.
There is no requirement for the landlord to give notice of eviction to the tenant after the lease agreement has expired.

It is extremely important for a tenant to have a solid rental contract otherwise they may become vulnerable. Keep all rental receipts, agreements and receipts for all major household purchases as proof of payment. Those without sufficient proof that they have paid all rents, could be made to pay the rent again.

Utilities
In Thailand, most apartment rentals will cover main services. Utilities such as electricity and water will be measured in terms of unit usage and added onto the monthly rent. It is a good idea to know what the landlord’s policy is prior to moving in. Have each utility outlined with its price in the rental agreement.

Those renting a house and not an apartment will be able to have the utilities placed in their name. This can be done by providing the utility company with a lease agreement and a proof of ownership document that should be provided by the landlord.

Most utility bills can be paid directly from the tenant’s bank account. Utility bills can also be paid at the local 7-11 shop.

Electricity
In Bangkok the Metropolitan Electricity Authority (MEA) is the distributor, while the Provincial Electricity Authority (PEA) sells electricity in the rest of Thailand.
If the landlord is not arranging electricity, contact the local government office in the region responsible for electricity to connect or disconnect power to a home. At least one week’s notice is required.

Gas
There is no mains gas in Thailand. LPG (Propane) is used mainly for cooking and is provided in different sized cylinders that are widely available. If the rented property has appliances that operate on gas (stove), the tenant can have a gas cylinder delivered to their house or apartment and connected to the stove.

Water
Usually this is arranged through the landlord and included in the monthly rental. Where it is the tenant’s responsibility it is necessary to telephone or visit one of the branch offices of the appropriate water authority. At least one week’s notice is required for connection or disconnection.
• Metropolitan Waterworks Authority of Thailand (MWA) (in Bangkok, Nonthaburi, and Samut Prakan)
Tel: 1125
Website
• For a list of MWA branch offices: Click here
• Provincial Waterworks Authority (PWA) (outside Bangkok)
Tel: 1567

It is normally easier for the landlord to arrange a telephone connection. However, if the tenant is responsible for doing this they should visit the telephone company office with proof of ID and residence. The telephone company will also want to see a letter from the landlord and a copy of their house registration book (Tabien Baan).
• CAT Telecom
• Telephone Organisation of Thailand (TOT)
• Thai Telephone & Telecommunications (TT&T) (in Thai)
• True

Insurance
Rental insurance is not a common practice in Thailand and is not required by law (although with a more expensive property, the landlord may request that the tenant has insurance cover). Insurance companies offer rental coverage for foreigners as well as locals.

The following are usually covered by household insurance but it is necessary to check the individual policy’s fine print:
• Water damage
• Tsunami damage
• Theft and vandalism
• Fire damage
• Broken windows
• Furnishings and valuables

Taxes
The landlord is legally responsible for paying property tax which is 12.5 percent annually, however some landlords will insist that the lessee pay the tax in addition to the monthly rent, so make sure the tax procedures are clearly stated on the lease.

For any additional information, please contact an agent at info@huahinfinder.com

Article Courtesy of Mr.Gavin Wills

www.angloinfo.com
gavin.wills@angloinfo.com

For foreigners buying a condominium is probably the easiest option available. It is possible to purchase condominium in a foreigner`s name as long as the unit sold in the condominium block does not exceed 49% of the total units, and the funds for buying the unit have to be transferred from abroad to a Thai bank, recorded as such. The Thai law on this area is very clear and simple, since you will not be buying the land itself, but only a unit or more in the building.
When transferring the funds from abroad the owner must request a foreign exchange transaction form that states that the money transferred is only for the purpose of buying a condominium in Thailand. Purchases of condominiums by foreign individuals are governed by the Condominium Act B.E. 2535 (1992).
The owner of each condominium is issued with a certificate of unit ownership. The certificate also has a statement saying exactly what percentage of rights over the common areas of the building each owner has.
Step by step:

1. When you have found exactly the condominium that suits you, the procedure is straight forward. Together with your broker you go through the contract, and agree that all the details are in order. If you want to make any changes to the condo, make sure it is written in the contract before signing it. You could also have our own attorney look at the contract to see if there is anything out of the ordinary. Our standard contract is made by an independent law office, and is also approved by a real estate lawyer to make sure everything is in place. The contract is written in both English and Thai, because of the local authorities who have to approve the legal papers.

2. Deposit is paid on the same day as the contract is signed. When buying a condominium, the deposit is to hold the condo you buy.

3. Payments: It is Thai procedure that the payment is done in rates starting from day of signing contract to the handover.

Please contact us anytime to assist you in answering any questions

Cheers

It has been nearly five years since my wife and I first moved to Hua Hin, Thailand. At the beginning it was hectic, where to rent, place the kids in school, get to know the neighborhood, find a job, and so much more. With a bit of effort we were able to settle in nicely. We rented a house on soi 27 for the first year while our house was being built. We are still friends with the owner and now help her to find good tenants. When friends I stay in touch with using facebook send me a message asking if I am ever coming back to Canada or why I love Thailand so much , the reasons are endless or ever changing as to why I have made Hua Hin my home.
Here are some of the reasons:
Hua Hin, Thailand is promoted by the Tourism Authority of Thailand as The Paradise City of Thailand. This transformation began a couple of years before the 60th anniversary to honor his majesty the King’s ascension to the throne. Better roads, a new modern hospital for the King, Improvements to the Parks and such to pay respect to the King.
As well the number of activities to do in Hua Hin is growing every year. Some of my favorites are jogging on the beach, Mountain Biking, Trekking at Pala-Au Waterfall, or grabbing s bite to eat at one of the many night markets. Some of the new activities are ATV racing, Paint Ball, and More Challenging Golf Courses and Driving Ranges. As well, a new cinema in the Market Village Shopping Mall.
One of my favorite spots is Hin Lek Fai Mountain. It is a rather steep walk up or you can easily drive to really see the best panoramic views of Hua Hin. Another great place is the Queen’s Park on the beach with a new Kids playground: Take Naebkehars Road to get there. A few food vendors are stationed there as well for a nice snack after play.
Cheers
Geoff