Paying 12 Months Rent In Advance

[midas]

I have been offered a generous discount if I pay 12 months rent in advance

I actually gave a similar proposition some time ago to the

tenant of my Sydney apartment. But in Thailand I'm not so sure about

my rights if for example the owner just happened to sell the property say

six months down the line and the new owner wanted immediate vacant possession

or wasnt made aware of my advance rental payment ?

Leases is in this country are not registered and I don't believe the

laws generally would protect me in this situation compared to

someone in Australia the who did the same thing ?

If I chose to pay 12 months in advance, is there any paragraph that I could /should

add to the lease agreement which will strengthen my case in the event that

there is a new owner before the end of the lease term ( even if this occurs )

and to ensure my lease and advance rental payment is recognised

by all both parties ? Would you do this in Thailand ?

[sometime]

This is very risky, and you would defiantly need a lawyer, because I personally know two people who paid one year up front, the first year went ok, three weeks after they paid the second years rent up front they received a knock at the door from the lawful owners asking for his rent or vacate the property.

The person who they paid their rent to was subletting and did a runner with 150,000 baht on both occasions (nice little earner)

This scam could have been done after the first day. :D

[Briggsy]

I can tell you this 12 month advance rent payment in return for discount is fairly common practice in apartments.

I can tell you that I know of at least 3 friends (farangs) who have been told to pack up and go within 2 weeks as the property is to be sold. Though none of them had paid in advance.

I have no idea what would happen if that happened to you.

[zzz9]

I dont see any problem with it I did it when I rented a property have "san yaa" promise paper...I even went out before the 1 year finish and didnt give the keys or the permission to the owner to take his building before the time finished.. and he couldnt do nothing about it.

This of course .. with direct deal with the owner.

[besth]

My sister and her husband did this in their condo, as the deal meant a 20% return on the money (which they would never get anywhere else on a relative small amount like that).

The manager took the cash and promised to deliver the receipt to the room later. They were lucky that my brother in law insisted to get it there and then.

It turned out that the offer wasn't coming from the owners of the building (a reputable public company), but it was a scam from the manager. He lured quite a few tennants, Thai and farang, into similar deals and then he ran away with around 3 million baht of company money.

Those who did not have proof of payment lost their money. The company respected the deals for those who had documents proving the deals (receipts showing dates and concept clearly).

As for a sale from your owner in a few months time, if you have the proper documents, the lease would stand against the new owner and if they wanted you to vacate the premises before the contract expiring you could, at least, ask for the part of your money back, but this is Thailand...

If you are renting from a big company, it is probably not that bad, as long as you get everything very clearly in writing. Include a paragraph in the contract stating that it will remain in place in case of change of owner (sale, heirs).

Do not pay cash. Pay by bank cashier's cheque made payable to the owner of the condo, be it a company or an individual, even if it is a different person who is authorized to sign the deal with you. If they refuse to accept that, it probably is a good sign that something is not right.

Difficult call, mostly depends on what you know about your landlord.

[zzz9]

"but this is Thailand..."

Wrong attitude and this kind of attitude is what makes thai trivk the farang that dont know the rules.

Do it properly and you'll see who have the strong hand.

In my case the owner was a real Bixxx. and really the most jai dam that someone can meet ..she tried to play she tried to raise the price she try anything to scare me from my legal and my rights.. but guess what??

She stuck with an empty building few months and loose me as a good and long (looooong)costumer.

Yes this is thailand and they should obbey the rules of the country and if they choose not to..so use ur brain how to knock them down to the right way.

Best luck.

[midas]

The manager took the cash and promised to deliver the receipt to the room later. They were lucky that my brother in law insisted to get it there and then.

Those who did not have proof of payment lost their money. The company respected the deals for those who had documents proving the deals (receipts showing dates and concept clearly).

I appreciate everyone's comments. I have very strong views on receipts not only in Thailand but anywhere !

yes on many occasions in different situations - not just real estate - people have agreed to give me a receipt

" later on " !! I never except that - it almost defeats the purpose of the receipt in that you should get it immediately

upon payment especially cash.

[midas]

I dont see any problem with it I did it when I rented a property have "san yaa" promise paper...I even went out before the 1 year finish and didnt give the keys or the permission to the owner to take his building before the time finished.. and he couldnt do nothing about it.

This of course .. with direct deal with the owner.

I would only consider this when dealing directly with an owner. I was also thinking I could discreetly

ask the juristic person's office to verify how long they have owned the property and whether they are

responsible condominium owners e.g regular maintenance payments etc. that would at least give

some indication whether they are " bona fide " people. maybe I will also look into having a "san yaa" promise paper

before I make a decision.

[fisherd3]

Even if everyone is upfront, if something happens that makes the environment unacceptable (Noie noise noise) youre stuck for a year. Personally I wouldn'y do it, people only discount poor quality.

[DragonQuest]

do it the way "normal peolpe" do it and pay by month is a safe bet. dont gamble, i dont.

[think_too_mut]

I offered 12 months in advance for a discount. No discount.

Then, we pay monthly.

[GuestHouse]

My general view on paying for anything in Thailand, is do not pay in advance, but if you must pay in advance pay the smallest possible amount.

The reasons are many, you may be ripped off as has been said above. You may find you don't like the place or that you have neighbours from hel_l.

Finally, the best way to do business in Thailand is to have the other guy firmly gripped by the wallet. The only thing you are brining to the deal is money, so don't hand it all over at once.

Keep the deal sweet by keeping the money in your pocket for as long as possible.

A landlord who is paying attention once a month is better than one who looses intrest for twelve months at a time.

[zzz9]

I dissagree with guesthouse. in some cases its really the opposite.

U say u can find out the neighbours not nice.

I say..u can find out that its good location for ur business and u dont want to be thrown out a take over ur business.

In the case of my owner (from he_l_l )...I was happy not to see her face.

Depend..I say..if u get good discount on an advance payment with the proper papers DO IT.

1 thing I not reccoment is to rent from someody that from the start smelled bad..and not go for the hot location ..and if u feel the pwner "smells.." even if the property is PERFECT..dont go for it.

Its a reciept for problems.

[eljeque]

Register it at the land office. The owner will ahve to pay about 1% or a little more at the land office. If he does not want to pay it, then you pay it. It means that he cannot sell the property unless the lease is settled.

[Farma]

We've done this twice on commercial buildings. Both cases dealing with the owner direct. My wife drew up the lease agreements and these were signed and witnessed prior to the cash being handed over.

One was 2 years up front with the owner doing major modifications to the building for us. The second lease was for 1 year up front.

Both leases included the owner allowing us to make modifications to the shopfront without a requirement to return the buildings to the original state on departure.

In both cases we had no problems during the lease period or on departure.

[backflip]

An earlier poster did the same as you planned. It worked out OK...until he decided he wanted to move, and the building manager would not return his deposit. Most of the TV posters agreed with the building manager: you signed a contract and, if you change your mind, you'll pay for it. Be sure you like the building. Perhaps you could rent for one month, and then extend for another year.

[maccaroni man]

I have rental property and always offer a reduction if people pay in advance for 6mos to a year. Often times what happens is the tenant will rent for one month at the higher rate and then sign up for the lower rate the following month. I always give them a contract that is easy to understand and states all terms of the agreement. i.e. who pays for what and when.....