Property Rental Laws in Thailand

Property Services in Thailand

When expats retire in Thailand they tend to rent the property first to ensure that they like the area. This is normally included in the rental agreement being an option to buy the property after a certain period of time. Some do opt to buy property in Thailand but the majority of expats tend to rent in Thailand. If you are buying a property then speak to a lawyer in Thailand about this so that they may check the title deed and other issues which are important.

Always opt for a due diligence report on the property if you are buying. Now before settling on a particular property for you to rent, you must consider a number of things first. These are what expats and investors in property normally consider when renting or investing in property in Thailand. This will help you decide whether the property you “like” to rent is the “ideal” place for you.

  1. Property Size – Is the area of the property enough for your needs? You may rent a large property for your few things and you end up paying more than what you are supposed to.
  2. Distance to Educational Institutions, Workplace and Commercial Establishments – Is the property near to your workplace and of your children’s school? The property you like to rent may be too far from school and your place of work that it will be impractical for you to take long travels just to reach your destinations.
  3. Budget Issues – Is the rent well within your capacity to pay? You have to remember that you still have other expenses to consider even if the rent is within your budget.
  4. Other property details such as parking – Will the property allows you to park your car right by your doorstep or you have to park it at the road? Some properties may not be able to provide you with safe and secure parking for your vehicle.
  5. Terms and Duration – Are the terms and conditions friendly enough for you? Is the length of time in consonant with the rental amount?
  6. Furnishing – Do you want the property to be fully furnished before you will occupy it or you want it half empty so that you can bring your own things without worrying for space?

You also need to know the Civil and Commercial Code of Thailand and the Condominium Act as these are the applicable laws on rent.

Civil and Commercial Code

The law dictates that:

  • Renting an immovable property is limited to 30 years only. However, this can be renewed but such renewal must not exceed 30 years from the period of renewal.
  • The renter cannot use the property beyond what was stipulated under the contract.
  • The renter is bound to take care of the property as if it is his own and negligible repairs should be done by the renter too.
  • The hirer must ask for permission from the owner in case of any property alteration and or expansion.
  • The contract will end at the prescribed period stated on the contract even without notice.
  • The hirer is required to act according to the provisions on Section 552 and 553 and on the terms and conditions set by the contract. Any actions contrary to such can be enough grounds for the letter to cancel the contract.
  • In cases that the property is still occupied by the hirer even if it is already beyond the period stated on the contract, the contract is deemed renewed if the letter has no objections of the extended occupation.

Condominium Act

The law dictates that:

  • If the lease agreement on a real estate exceeds 3 years, the said agreement must be registered with the local land office.
  • For foreigner renters, it is also important to check whether the number of registered owners/renters of foreign nationalities has not exceeded the cap on the condominium building.

Again before you sign any lease agreement in Thailand always ensure that you have spoken to a lawyer in Thailand before you sign especially if it is one of those long term rentals such as a 30-year property rental. With offices in all the main cities of Thailand from Chiang Mai, Bangkok, Samui, Pattaya, Phuket and Hua Hin we are able to assist you anywhere in Thailand with your property needs.


Leave a Reply

Your email address will not be published. Required fields are marked *