Thailand: Residential property leasing business

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published on September 17, 2018 / reading time approx.: 1 minute
 

Since 1st May 2018, the business of leasing out residential property in Thailand is a contract-controlled business. Thus, business operators have to comply with certain consumer protection regulations:
 
 

1. A residential property leasing business is defined as business leasing out more than five units of property to individual lessees for residential purposes. The units do not have to be in the same building.

 
A property can be any form of accommodation, including houses, condominiums or apartment units.

 

2. Under the new regulations, business operators have to explicitly include certain clauses in the lease agreement, otherwise they will be deemed included. For example:
  • lessees must have the right to terminate the lease early by giving a 30 days advance notice;
  • any security deposit has to be returned within seven days from the end of the lease;
  • causes for immediate termination of the lease by the lessor have to be clearly highlighted in red font or by equivalent measures (bold, italic).

 

3. The new regulations further prohibit certain clauses, for example:
  • requesting a security deposit exceeding the amount of one monthly rent  or
  • shifting a certain liability to the lessee, such as liability for damages incurred by ordinary wear and tear.
    Any prohibited clauses will be deemed not included in the contract.


4. Business operators violating the new regulations are subject to penalties under the applicable consumer protection law.

 
Business operators and lessees should review their lease agreements to make sure that they comply with the new legislation.

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