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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. Although it's recommended for both parties to have a rental agreement, it is still relatively common for a verbal agreement to be made after a private property viewing. Finding a PropertyProperties can easily be found:
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Real estate agenciesThere 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. Signs and bulletinsOne of the best ways to find a house or an apartment in Thailand is to simply pinpoint an area and drive around looking at signs on buildings. The signs are usually handwritten in English with a telephone number posted prominently on them. Bulletins for rental properties are often posted at major grocery and department stores. Types of PropertyThere 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. DocumentationA foreigner renting property in Thailand is usually required to present the following documents:
The LeaseThe 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:
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 contractGenerally a lease and security deposit are all that is needed to secure property in Thailand; it is not typical to give a LOI or a good faith deposit to secure property. (A Letter of Intent is a written offer that expresses a mutual interest in renting the property and states the proposed rent, duration, move-in date and any work necessary to complete the proposed transaction. A good faith deposit is paid to the owner to secure the LOI to prevent a potential lease to another party.) GuarantorAlthough 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. DepositIn 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 obligationsThe 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:
Note: It is not legal for a foreigner to use his property for commercial purposes. SubleaseSubleasing/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 TenancyThe 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. UtilitiesIn 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. ElectricityIn 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. GasThere 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. WaterUsually 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.
TelephoneIt 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).
InsuranceRental 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:
TaxesThe 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. Further Information
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