help with - understanding leases in thailand

[pumpjack]

ive been looking into buying a business and lucky for me i got some sound advise from another TV member about the lease oin the business or should i say non lease left on the business.

anyway,  what lease is best to buy say a bar/guesthouse business 3/3/3 of course ? 

whats difference between

direct lease

sub lease

renewable lease

rolling lease

etc etc

 

and the important question for me is this,  what if i buy a business on say for instance a restaurant with a 3 year lease and after the 3 years the landlord says they wont renew,  then i do not have a leg to stand on ,correct ? 

what if i buy a business and half way through my lease of 3+3+3 the landlord says, i cannot operate a restaraunt anymore on his premises or even that they want me out ,  then again i do not have a leg to stand on , correct ?  

 

this is thailand right .

cheers

JACK

[Minnehaha]

Correct. If the lease expires then conditions expire as well. Unless you state that lease renewal stipulates that conditions remain unchanged. And specify what conditions are...

[chickenrunCM]

there is no lease 3+3+3 there is only a maximum 3 year lease if not registered in the land office

[timendres]

I know a business owner here in BKK who closed his restaurant specifically because the landlord would not renew the lease with acceptable terms. The new terms essentially made the business unprofitable.

[KarenBravo]

ChickenrunCM is correct.

0 to 3 years = Not necessary to register lease at land office. That's why for landlords it's the lease of choice.

3+ to 30 years = Minimum to maximum lease period that must be registered at the land office.

x+x+x year leases = Not worth the paper they're written on.

Edited December 27, 2017 by KarenBravo

[Khun Jean]

Believe it or not but there are owners that will give longer lease terms and even without having to pay keymoney.

Keep looking until you find one. For the ones that don't, they are mainly scared of paying taxes or never be able to raise prices. You could suggest adding the tax to the rent and include a yearly increase in rent as a percentage. Maybe one will see the value in it. Still the change is slim. Until then don't start a business as it can and will be killed (made unprofitable,unsustainable) after 3 years. Don't get your hopes up.