Renting a House or an Apartment in Thailand
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