Bangkok Apartment Legal Issues Are Usually Involving Leasing Contracts

Annual leasing contracts are usually standard contracts. A good understanding of the basics in these contracts should help you avoid any misunderstanding. I would like to use a basic contract as an example to illustrate. (Checkout Legal Services near the bottom)

When I was attending the Thai Law School five years ago, there were ample discussions on the topic. I will point out to you some sensitive spots as we go along.

The first contract clause specifies who is the landlord and who is/are the tenants.

Here the concern from the landlord point of view is who will be occupying the rental unit ? How many persons are going to be there ? Most apartment buildings and condos do have good security measures. You are likely need to have an elevator or a door pass card to enter the building, so each tenant would get one of these cards.

From the tenant point of view, you would want to know who the landlord is, so you can contact him in time of needs. If it is an apartment, the contact office is usually in the lobby. If it is a condo, the landlord may not be in the same building, so his phone number is good to have.

Next clause usually talks about rent payments and fees. 

For an annual lease, you are leasing the unit on an annual basis, and the rental amount will be quoted accordingly. The rent payment arrangement is set up for the tenant’s convenience, by splitting it into twelve monthly payments, due and payable at a specific date of each month.

From the landlord point of view, this is probably the most important clause. He is expecting to get paid on time for letting the tenant use the premises. Late fee is usually incurred if the payment is unreasonable late.

From the tenant point of view, the tenant expect the premises to be in good order at all times and needed major repairs are done quickly. Most landlords in a well maintained building do pay attention to his tenant’s request. Landlords do not wish to create a situation where the tenant has an excuse to pay the rent late.

Security Deposit is a rather sensitive clause

For an annual lease, a security deposit is usually equal to two months rent.

From a landlord’s point of view, this fund is an insurance for him so that he is assured of getting paid monthly, plus if there is some damages to the rental unit due to the tenant fault, there is some money on the table for remedy.

This amount is paid up front before you occupy the premises. It is used as an indicator that the tenant does have money to make monthly payment. Because if the tenant cannot afford to make this payment, he is likely cannot afford to make the monthly rent payment.

From the tenant’s point of view, this is a fund that all tenants do not like to part with, and expect to get back at the end of the lease term.

From the courts’ point of view, if the tenant performs diligently according to the terms of the lease contract, the courts are more likely to symphatize with the tenant and would rule in favor of the tenant. This is a sensitive spot that was liberally discussed in class.

Some tenants had expected to get a deposit refund of more than two months, claiming that his last month was not fully occupied. This is a no no. There is no standard contract discussing a refund of partial rent payment, so do not confuse deposit money and rent money. The tenants are entitled to a refund of the deposit money less expenses only and never a partial rent payment.

The courts would definitely frown on someone who tries to enforce some non-existing terms in the contract.

Parties’ responsibility once the unit is rented

In brief, the landlord is responsible to keep the rental premises in good condition, and response to tenant’s request in an efficient manner.

The tenant is expected to occupy the unit in a peaceful manner, respecting his neighbor’s rights and to follow the rule of the building. The tenant is also expected to pay all utility bills (electric, phone and water).

The Lease term is completed.

Once the lease term is completed, the landlord will inspect the premises for any damages. If there is one and the damage is not normal were and tair then the landlord would deduct the repair cost from the security deposit.

The landlord may bring a new client to see the premises if the tenant does not wish to renew the lease, before the tenant vacate the premises.

At this point the tenant should make sure he pays all utility bills promptly and clean the unit as much as possible. By keeping the unit tidy, the landlord would be incline to return the security deposit to the tenant sooner. The landlord will return the deposit less expense in about 30 days; he needs to wait for the utility bills for the previous month.

As you can see, there are some fine points in the lease contract. By recognizing these points you can avoid any unnecessary inconvenience and delay in getting valued services.

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