Rental deposit--preparing for move to CM

[nicolas65]

We are arriving in Chiang Mai in about six weeks and I want to be sure I'm set up to sign a rental agreement once we've found a place we like.  I have been following this forum for a couple of years and I have been searching old threads, but I still have a few questions, one of which is:  realizing the amount will vary depending on expected rental budget, how many months rent should one bring in cash (for condo rental deposit), or is it safer/better to rely on a wire transfer or some other mechanism to fund your initial deposit?  My bank's site says it will take them to take 5-7 business days to effect an international wire transfer.  Another question, in CM, how are monthly rental payments usually made, deposit to the landlord's bank account?

 

thanks much,

N

[NancyL]

Two months rent as a deposit plus the first month rent paid upfront has been the norm in the rental arrangements we've been in.  Thus -- three months rent is needed initially, realizing you'll (probably) get the two months rent deposit back at the end when you leave.  Be sure to allow time for the landlord/owner to "process" the refund of your deposit when your contract is over.  Some mess around with this, especially if you're leaving the country, saying they need time to inspect the place, get money from their bank, etc.

 

It's generally a good idea to bring large amounts of money into the country via a mechanism where there is a "paper trail" so you can prove foreign sourcing, to make it easier for you to repatriate the money.  

 

 

[nicolas65]

Thanks much for the thoughtful response!

[BuddyDean]

Exceptions to the two month rule would be dealing directly with a condo owner, but rarely.  Some of the bigger complexes are more reliable about refunding deposits than some guy operating three or four rentals on a shoestring, but they know how to nickel and dime you, as they probably should.  Smokers and let owners have seen some heavy deductions.  If you use the condo's cleaning service e regularly, you get a bit of insurance against st a big cleaning bill.  Oh, I knew a guy that offered to pay for the entire six month lease at Nakornping, up front with a one month deposit....the owner still insisted on two.  Also, some think it is OK to not pay the last months rent...and that can bite you in the are if it isn't prearranged.

[NancyL]

Often an owner/landlord will withhold the cost of the building's "standard cleaning" fee if you haven't used them and even the cost of a cheap repainting from the deposit.  We got caught on this once when we'd been keeping the place spotless ourselves and were charged 1000 baht "painting fee" by the owner out of our deposit when we found out he paid the building maintenance guy 400 baht after hours to slap on a cheap coat of paint.  We should have arranged the 300 baht cleaning and 400 baht repainting ourselves before we left, rather than getting 1500 deducted from the deposit by the owner for "cleaning and repainting"

[nicolas65]

Excellent tip!

[lkn]

8 hours ago, nicolas65 said:

My bank's site says it will take them to take 5-7 business days to effect an international wire transfer.  Another question, in CM, how are monthly rental payments usually made, deposit to the landlord's bank account?

I would not do an international wire to someone else’s Thai bank account: you will not know the exact amount (after exchange rate and fees), nor the exact time the money arrives in the account, and you can be almost certain that the recipient will not be able to see who sent the money or even any note you may have provided when doing the wire transfer.

 

I would setup a Thai bank account and then transfer from this, as you can then do an immediate transfer in THB, so it will be much easier to “track” your transaction, i.e. you can send them the confirmation page that says “75,000 THB was transferred to account XYZ in name «name of Landlord» today at 15:03:42” rather than “You should have received the equivalent of 2,300 USD in THB between the 10th and 15th of this month”.

 

Though it is not unusual to pay things in cash here (even large amounts), just be sure to get a receipt. Most condos will have some pre printed receipt books for this purpose.

[NancyL]

11 hours ago, lkn said:

I would not do an international wire to someone else’s Thai bank account: you will not know the exact amount (after exchange rate and fees), nor the exact time the money arrives in the account, and you can be almost certain that the recipient will not be able to see who sent the money or even any note you may have provided when doing the wire transfer.

 

I would setup a Thai bank account and then transfer from this, as you can then do an immediate transfer in THB, so it will be much easier to “track” your transaction, i.e. you can send them the confirmation page that says “75,000 THB was transferred to account XYZ in name «name of Landlord» today at 15:03:42” rather than “You should have received the equivalent of 2,300 USD in THB between the 10th and 15th of this month”.

 

Though it is not unusual to pay things in cash here (even large amounts), just be sure to get a receipt. Most condos will have some pre printed receipt books for this purpose.

Oh, when I suggested to wire transfer funds into Thailand, I had presumed the OP understood, I meant into his own Thai bank account, not into that of his landlord.  You can set up your rental payment as an "auto pay" out of your Thai bank account or transfer rental payment into your landlord's bank account via online banking or even at your bank's ATM machine. 

 

Some owners want payment in cash, presumably because they don't want a "paper trail" and aren't declaring the income on Thai income taxes, but I'd suggest steering clear of someone who doesn't appear to be declaring their rental income.  Such people aren't likely to cooperate in other arenas, like filing the TM30 form on your behalf at Chiang Mai Immigration or returning your deposit when the contract is over.

[BuddyDean]

and if the lease says you are responsible for rent tax; they will expect you to pay.  Before you even go inside, some big issues are Government electric rates, availability of your own internet account, rental taxes, and TM30.....only then should you start to worry about roaches, rats, and the beds being hard as a rock.

[thaibeachlovers]

On ‎11‎/‎18‎/‎2017 at 2:34 PM, NancyL said:

Two months rent as a deposit plus the first month rent paid upfront has been the norm in the rental arrangements we've been in.  Thus -- three months rent is needed initially, realizing you'll (probably) get the two months rent deposit back at the end when you leave.  Be sure to allow time for the landlord/owner to "process" the refund of your deposit when your contract is over.  Some mess around with this, especially if you're leaving the country, saying they need time to inspect the place, get money from their bank, etc.

 

It's generally a good idea to bring large amounts of money into the country via a mechanism where there is a "paper trail" so you can prove foreign sourcing, to make it easier for you to repatriate the money.  

 

 

TWO months! Given that some places won't return it ( usual scam ) that's a bit expensive. The place I rented only charged one month.

 

The whole condo scam business is why I prefer to live in an hotel- no deposit, no electric bills, no water bills, everything the condo had except a kitchen, and cleaning, drinking water, wifi, cable tv included, and all for the same price as a condo.

[BuddyDean]

16 minutes ago, thaibeachlovers said:

TWO months! Given that some places won't return it ( usual scam ) that's a bit expensive. The place I rented only charged one month.

 

The whole condo scam business is why I prefer to live in an hotel- no deposit, no electric bills, no water bills, everything the condo had except a kitchen, and cleaning, drinking water, wifi, cable tv included, and all for the same price as a condo.

I agree, and for three months or less, that is the best choice, especially if you run zircon.  If you strike g together a week+ at a time, it will be less even assuming you get your deposits back.  A Thai musician I know told me he is paying 2800 per month in Santitham, but electric is 12 THB per unit.  Many hotels give you a little fridge + daily maid service.  Would be tougher on families, but for one or two, you could easily average 350 per night inc. Everything...and many more escape options.  Agora gives the size of the rooms on the website.

[SinKhaPoChin]

If u intend to stay in the Mueang district (i.e. the city district), it's not too big to search around on your own. Just drive around look out for the banners, call the numbers, verify they are the owners and make an appointment. Often it's immediate. Or u may Google-search the number first. If it shows up usually it's the agent's. From experience it's much better to deal directly with the owners.


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[SinKhaPoChin]

Over last 4 years had rented directly from the owners 3 times already.
First time a small furnished apartment in a shared compound. Minimum 6 months lease. 5k deposit and 5k upfront rent. Average 1.5k for monthly utilities paid with the rent. Cable tv and Wifi included. Shared washing machines. When I left no fuss at all. Owner came to hand me back the deposit.
Moved to a 2-storey 2-bedroom furnished townhouse. No washer. 10k deposit and upfront 10k rental. Minimum 1-year lease. Cable tv included but no wifi. Owner has engaged a managing agent who lived nearby. Paid monthly rental to her directly and got receipts. Also got back deposit in cash on same day moved out. (Was prepared because 1-month notice was given.)
Now stays in same type townhouse inside Village with security, clubhouse and swim pool. Minimum lease 1 year. This time deposit is 2-month rent and upfront 12k rent. Cable tv and wifi included. Paid rent to a bank account given by the owner. This is stated in the lease agreement.


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[BuddyDean]

True for condos and houses, but hotel walk in rates are almost always higher than the promos on agoda.   I have even been sent to an internet shop to get the better rate.  Paid 220 per night at Siam Privi in Huai Kwang last month.  Walk in rate was 590.  And they still gave me a top floor, corner room...that was spotless, with fridge and flat screen, daikin a/c.

Edited November 19, 2017 by BuddyDean

[NancyL]

Agree that for stays of less than six months or for your first housing experience here, it can usually make sense just to stay in a "hotel", or rather a serviced apartment where you don't have a real kitchen, but rather a studio unit with a small fridge, microwave, pot water pot, aircon, maid service, cable TV and wifi provided as part of the package.  Just be sure this serviced apartment is in a good location where you don't have to rent a motorcycle to get around, if you haven't used a motorcycle before.  There are many options.

 

This gives you a chance to learn your options and look around for longer-term housing options.  Some people who live on their own and/or don't like or need to cook for themselves live in units like this for year after year.  Some of these building are run by very nice people and have a good "family feel.