How do you rent property in Thailand?
Not sure of the process to rent a property? Want to know how much your deposit is likely to be or what your tenancy agreement should cover? Follow our guide to make renting your next home in Thailand a smooth one, and so that you can get to grips with the standard procedures and what is required of you as a tenant.
A tenancy agreement is the legal document between a tenant and a landlord detailing the terms of renting a property. They are usually for a term of one year, although shorter terms of three months may be negotiated dependent on the landlord.
Each tenancy agreement should include the following details as a minimum:
- Tenant’s and landlord’s full name
- Full address of the property.
- Monthly rent amount.
- Deposit amount.
- Term of the tenancy including the commencement and termination dates.
- Break clause (if applicable) stating how and when the agreement can be terminated.
- Tenant and landlord obligations.
Prior to the commencement of the tenancy
The tenant is required to pay a deposit and one month’s rent in advance. It advisable to carefully read all the tenancy agreement and check with the agent or landlord of any clauses you are unsure of, as the tenant is bound to these terms and agrees to pay the rent on time upon signing the tenancy agreement.
Two months rent is the standard amount expected for a deposit. The deposit is held with the landlord and it is refundable at the termination of the tenancy provided that all the rent is paid in full and there is no damage to the property.
A break clause allows for the tenancy to be terminated before the expiry date provided that it is exercised under the terms of the tenancy agreement. A tenancy can only be terminated with a break clause or if the tenant is in breach of their obligations. A break clause needs to be exercised with the correct notice period, which is usually two months. It is advisable to serve notice in writing as proof of the termination, and any other termination required by the tenant is at the discretion of the landlord.
An inventory is a list of all the items in the property and should be provided to the tenant at the commencement of the tenancy. The tenant is advised to check the inventory against the contents in the property, and any discrepancies should be noted and the landlord should be notified with photos where possible.
The rent remains the same for the term of the tenancy agreement and it cannot be increased within this time. Should the tenancy be renewed, negotiations between the landlord and the tenant may occur for a rent increase, and any amendments to the terms of the tenancy should be documented in a memorandum of agreement.
At the end of the tenancy
It is recommended for tenants to keep all receipts for rental payments alongside all other written (hand or email) communication with the landlord until the end of the tenancy, and once the deposit has been returned.