New govt condo rental rules

[anon537687643]

The law also says that these costs have to be reasonable, but let's face it: Now the apartment owner is charging 7THB for electricity. 4THB go to the government.
After the law changes he will make a contract with his brother that the maintenance of the electrical systems costs another 3THB, so he can charge the same 7THB as before.

Oh I see! They will make sure tenants are still screwed


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[jackdd]

26 minutes ago, markaoffy said:

Oh I see! They will make sure tenants are still screwed


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Actually i wouldn't say that he screws the tenant. The price for electricity and water is just something that you have to consider in your calculation when you rent a room.

The reason that apartments use this system with charging 7THB for electricity is just used to lure in more potential tenants and they have the administrative task of collecting the money for electricity from the tenants anyway.

Let's say the rent is 10k and the tenant would use 500 units of electricity per month. The owner pockets 3THB per unit, so effectively has an income of 11500THB from this apartment.

He could also just ask for 11500THB rent per month and let the tenant pay just the 4THB for electricity (same income), but probably he finds more tenants if he advertises his apartment with 10k per month instead of 11.5k per month.

If you are not willing to pay the asking price you can negotiate with him or rent somewhere else.

Edited February 28, 2018 by jackdd

[bkkandy1308]

Remember, this will only apply to landlords with five or more rental properties, and for new rental/lease agreements signed from May 1. Quite how the average tenant will be able to check how many properties a Thai person owns is just one of many unanswered questions. Arguably the Thai Government cannot even do that right now.

 

According to some Thais I have spoken to in the past few days, this Law has been widely discussed in the Thai media for two years or more. It's not news to them. Why has something potentially so important been ignored by the mainstream English language media?  I suspect one reason could be the potential damage it could do to multi-property landlords from overseas who buy largely for rental returns. I know 20 individuals from Singapore alone that fall into this category. Questions from them to the developers and real estate agencies about this have gone unanswered to date, so it's already having a negative impact for some overseas buyers.

[Pattaya46]

new law concerns only "leasing business" that rent at least 5 apartments.

See http://tilleke.com/resources/new-contract-controls-introduced-residential-property-leasing-businesses-thailand-0

where they made this useful PDF about the new renting contract law.

See also http://thailandproperty.news/new-rental-law-start-may-1 that made a good summary of consequences.

 

Quote

 

In summary, ThailandProperty.News notes the following important points.

1. This new legal development will only apply to residential property landlords with five or more properties. Given the passion for property investment in Thailand, we know there will be a considerable number of Thai landlords affected by this development.
2. As a tenant you should request an English version of your tenancy agreement, even though the need for a Thai language one is specified. If it’s a translation, remember that it will only be as good as the translator’s skills.
3. Landlords are prevented from charging more for basic utilities than they actually cost.
4. Landlords can only request one-month in advance rental payment and one-month as a security deposit. Currently almost every rental requires two-months as security and one-month rent in advance.
5. Wear and tear cannot be used as a reason to not return any deposit, which also must be returned within seven days.
6. Even when signing a one-year agreement, or longer, tenants have the right to leave giving 30 days’ notice. No more “take over my lease” listings in these cases, we think.
7. Landlords can still inspect their property during an any rental period, but not without advance notice.

As with any property rental, ThailandProperty.News suggests you either (a) obtain legal advice before signing a legal rental agreement, or (b) ensure you fully understand the legal implications of any documents you sign.

 

 

[jackdd]

14 minutes ago, bkkandy1308 said:

Remember, this will only apply to landlords with five or more rental properties

That's what the english source that you linked to says, yes. But if you look in the actual law:

Quote

“ผู้ประกอบธุรกิจ” หมายความว่า ผู้ประกอบธุรกิจการให้เช่าอาคารเพื่ออยู่อาศัย โดยเรียกเก็บ ค่าเช่าจากผู้เช่า

My personal translation: "Business owner" (they use this term througout the law) means a person that rents a place to somebody and asks the tenant to pay rent.

Nothing like "only five or more" rental properties, i have yet to find the section where they talk about "five or more"

 

6 minutes ago, Pattaya46 said:

new law concerns only "leasing business" that rent at least 5 apartments.

See http://tilleke.com/resources/new-contract-controls-introduced-residential-property-leasing-businesses-thailand-0

where they made this useful PDF about the new renting contract law.

See also http://thailandproperty.news/new-rental-law-start-may-1 that made a good summary of consequences.

 

 

Several things in their translation are wrong, so i wouldn't base anything on what this company says.

Edited February 28, 2018 by jackdd

[bkkandy1308]

That's interesting regarding the quality of the translation. If so, the quoted law firm, which I think is one of Thailand's most respected and trusted, and at least one other I've seen as well as several mostly Thai real estate agencies, has sent information to its clients that is wrong at worst, or at the very least confusing.

 

So, regarding the term "business owner" it could mean anyone who makes money from renting property? Is that what you're suggesting Jackdd?

 

[anon537687643]

The law also says that these costs have to be reasonable, but let's face it: Now the apartment owner is charging 7THB for electricity. 4THB go to the government.
After the law changes he will make a contract with his brother that the maintenance of the electrical systems costs another 3THB, so he can charge the same 7THB as before.

Oh I see! They will make sure tenants are still screwed


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[jackdd]

22 minutes ago, bkkandy1308 said:

That's interesting regarding the quality of the translation. If so, the quoted law firm, which I think is one of Thailand's most respected and trusted, and at least one other I've seen as well as several mostly Thai real estate agencies, has sent information to its clients that is wrong at worst, or at the very least confusing.

 

So, regarding the term "business owner" it could mean anyone who makes money from renting property? Is that what you're suggesting Jackdd?

 

Yes, that what i was thinking, but i found the part which proofs me wrong, and talks about "five or more units":

Quote

“ธุรกิจการให้เช่าอาคารเพื่ออยู่อาศัย” หมายความว่า การประกอบธุรกิจที่ผู้ประกอบธุรกิจ ตกลงให้ผู้เช่าซึ่งเป็นบุคคลธรรมดาได้ใช้อาคารเพื่ออยู่อาศัย และผู้เช่าตกลงจะให้ค่าเช่าเพื่อการนั้น โดยมีสถานที่ที่จัดแบ่งให้เช่าตั้งแต่ ๕ หน่วยขึ้นไป ไม่ว่าจะอยู่ในอาคารเดียวกันหรือหลายอาคารรวมกัน

They explain that a "business for renting out homes" is a business that rents out 5 or more of such units. Now you do of course wonder what do you call a business that rents out just 4 of such units... but that's probably Thai logic

And the part that i quoted before says that a "business owner" is a person running such a business, i didn't expect that they define what a "business for renting out homes" is, because to me this is quite clear already, but obviously they wanted to spare all these businesses with less than 5 units the hassle

 

So what's wrong in the translation by tilleke as far a i know now:

If you want to leave early and give a 30 days notice you have to have, and probably also have to supply, a reason, this is clearly written in the law, i quoted the section in an earlier post, this could very well be relevant for a tenant.

In their translation they write about service fees, but it's not clear to the reader what exactly it means. In the original law they even make the example with extra charges for the water pump (see quote in an earlier post) which is needed to supply the water, but they just skipped this.

Edited February 28, 2018 by jackdd

[bkkandy1308]

Thanks Jackdd - I'm asking one of my Thai translator friends to give her interpretation/translation too. That's the thing with Thai/English translations - two different people can give three different versions. :) And because this is a Thai Law any translation will only ever be just that. I really appreciate your input, and if I get any more facts about what will or will not happen from a trusted source I will update this thread.

[Pattaya46]

On ‎28‎/‎02‎/‎2018 at 12:49 PM, jackdd said:

// the part that i quoted before says that a "business owner" is a person running such a business, i didn't expect that they define what a "business for renting out homes" is, because to me this is quite clear already, but obviously they wanted to spare all these businesses with less than 5 units the hassle //

 

Now how - as tenants - are we supposed to know if our renter is "a business owner" or not ?

Seems it will be a question to ask before renting, as there are some advantage with this new law.

 

[Destiny1990]

1 hour ago, Pattaya46 said:

 

Now how - as tenants - are we supposed to know if our renter is "a business owner" or not ?

Seems it will be a question to ask before renting, as there are some advantage with this new law.

 

He will say 4...

[anon537687643]

The cheating owners will get around this! Diffferent Names for owners! Even the babies or kids in family will be listed as owners


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[jackdd]

If you are aware of the laws already you should just make sure that you make the owner aware of these laws as well and write the contract according to the laws. If he agrees and do as you wish everything is fine. If he refuses do to it do you really want to stay there which means you maybe have to take him to court later? Probably better find another place then. And if it's written in the contract it also doesn't matter if he has just one unit, it's still binding then.

[gunderhill]

On 2/25/2018 at 10:09 PM, InMyShadow said:

Post a rumor without any substance except wifey heard some gossip and it pretty much becomes fact .Got to love TV

Yet it  turned out most of it was  true, the exception was it  applies  to owners of 5  condos or more, It was never a rumour she was informed by the land office a  while back, whilst the details werent complete my post was to ask if anyone else knew about these impending  changes.

[Pattaya46]

Hi. Is there somewhere more news or precisions on these new rules ?

There is in my condo a small group of "5+ units owners" who don't know too much what they must do... 

 

Their main first concern is to know who is concerned. It was first said in medias that the new law would apply only to new rental contracts, but now "the rumour" is that the law must apply to all their tenants from May 1st, requiring a contract amendment... 

 

If anyone has more info... Thanks

[scubascuba3]

Hi. Is there somewhere more news or precisions on these new rules ?
There is in my condo a small group of "5+ units owners" who don't know too much what they must do... 
 
Their main first concern is to know who is concerned. It was first said in medias that the new law would apply only to new rental contracts, but now "the rumour" is that the law must apply to all their tenants from May 1st, requiring a contract amendment... 
 
If anyone has more info... Thanks

Thaivisa forum is usually better on technical stuff like that

[Pattaya46]

11 minutes ago, scubascuba3 said:

Thaivisa forum is usually better on technical stuff like that

Only other threads I found on Thaivisa are the 2 below, but not much information inside 

 

 

 

[MikeN]

55 minutes ago, Pattaya46 said:

Hi. Is there somewhere more news or precisions on these new rules ?

There is in my condo a small group of "5+ units owners" who don't know too much what they must do... 

 

Their main first concern is to know who is concerned. It was first said in medias that the new law would apply only to new rental contracts, but now "the rumour" is that the law must apply to all their tenants from May 1st, requiring a contract amendment... 

 

If anyone has more info... Thanks

The paper we cannot link to says all existing leases must be amended if they do not comply, otherwise the owners face the possibility of a big fine or even jail.

Yeah, right, we all know how unlikely that is ....

 

[jackdd]

On 13.3.2018 at 2:16 PM, Pattaya46 said:

Hi. Is there somewhere more news or precisions on these new rules ?

There is in my condo a small group of "5+ units owners" who don't know too much what they must do... 

 

Their main first concern is to know who is concerned. It was first said in medias that the new law would apply only to new rental contracts, but now "the rumour" is that the law must apply to all their tenants from May 1st, requiring a contract amendment... 

 

If anyone has more info... Thanks

On page one i posted the link to the original Thai law, this is all information that exists and that's as precise as it will get

Edited March 14, 2018 by jackdd