Residential property leasing will now be deemed to be a contract-controlled business following publication in the Government Gazette last week.
The notification defines a “residential property leasing business” as a business that leases (or subleases) five units of property or more to individual lessees, for residential purposes, in exchange for a fee collected by the business operator, regardless of whether or not the units are in the same building.
Property is defined to include any accommodation, house, condominium unit, apartment, or other kind of residential property leased for residential purposes, excluding dormitories and hotels which are regulated separately.
Property consulting firm Jones Lang LaSalle (Thailand) Ltd (JLL) said that the new residential leasing law , effective on May 1, will make it more challenging for landlords to handle tenants who violate any of the agreed-upon terms and conditions of a binding contract.
The notification imposes the following requirements
1. Residential lease agreements must include a version in Thai, and must contain the following details:
a) The name and address of the business operator and its authorised person;
b) The name and address of the lessee;
c) The name and location of the property;
d) Details of the property’s physical condition, including any items and equipment in the property;
e) Term of the lease, specifying its commencement date and expiration date;
f) Rental fees, and due dates for payment;
g) Public utility fee rates, and due dates for payment;
h) Service fee rates, which must be reasonable and at the actual cost paid for the services, and due dates for payment;
i) Other fees and expenses (if any), which must be reasonable and at the actual cost paid, and due dates for payment; and,