Thai Law: Landlord Not Playing By New Rules? Here’s What To Do.

[webfact]

Thai Law: Landlord Not Playing By New Rules? Here’s What To Do.

By Wirot Poonsuwan, Attorney-at-Law

 

 

Two weeks after new consumer protections came into effect, few landlords have refunded security deposits collected in excess of the new legal limit. This despite the law, as of May 1, saying they must return to tenants anything over one month’s value following long-standing practice of collecting two – or more.

 

Neither are many landlords complying with the new law’s demand – on pain of potential criminal prosecution – that old rental agreements be thrown out and replaced with compliant ones.

 

Full story: http://www.khaosodenglish.com/featured/2018/05/16/thai-law-landlord-not-playing-by-new-rules-heres-what-to-do/

 

-- © Copyright Khaosod English 2018-05-16

[shady86]

Will see more abandoned units as it's risker to rent out now.

[poanoi]

long live castration of electric service fee

[kannot]

Wife deals with this daily ( estate  agent) and NO ONE she knows is  going to comply with these laws................and I dont blame them, way too easy for a tenant to bail on ANY contract, in fact it  makes the contracts virtually null and void.

Whilst there have been serious issues with some rse hole landlords never giving back deposits, for the most part they do from what she sees........ this is not a  one person viewpoint either, we are talking hundreds of condo contracts ending that she deals with and likewise her other agents/friends  in this line of work. 

However Chinese inflow is causing some serious issues, lets  just say honesty doesnt appear to be their best side. 

[jerry921]

5 minutes ago, shady86 said:

Will see more abandoned units as it's risker to rent out now.

This seems like nonsense to me. What is the risk of renting under the terms of the new law? That the tenant will move out? How is that worse than just not leasing the apartment in the first place?

 

The new law may make furnished rentals harder to find, as it may cause lessors to convert from furnished to unfurnished because they can't get enough security deposit to cover damage to furnishings, but thinking they'll leave the unit sit vacant is over-the-top over-reaction.

[greenchair]

Does this apply to renting land? 

[poanoi]

36 minutes ago, kannot said:

Wife deals with this daily ( estate  agent) and NO ONE she knows is  going to comply with these laws................and I dont blame them, way too easy for a tenant to bail on ANY contract, in fact it  makes the contracts virtually null and void.

Whilst there have been serious issues with some rse hole landlords never giving back deposits, for the most part they do from what she sees........ this is not a  one person viewpoint either, we are talking hundreds of condo contracts ending that she deals with and likewise her other agents/friends  in this line of work. 

However Chinese inflow is causing some serious issues, lets  just say honesty doesnt appear to be their best side. 

i never did count, but off the top of my head i'd say 1/3 of my landlords

decided to take part of my deposit. at least 1/3 actually,

i'd say between 1/3 to 1/2

[Just1Voice]

I'm so glad I own my home. lol 

 

[blackcab]

1 hour ago, greenchair said:

Does this apply to renting land? 

 

No. It applies to the lease of a residence only.

 

Commercial, industrial or bare land are not covered.

[Happy Grumpy]

What's the new law?

 

The owner can only demand one month's deposit along with the first month's rent, as opposed to first month's rent and 2 month's deposit?

 

And any that are currently renting out a place where they have received 2 month's deposit have to refund one month now?

 

Is that correct?

 

 

Bit strange. I have always rented out my units as 2 month's deposit, and they can not pay for the final month if they ask, and the other month's worth will cover any bills etc.  

 

[worgeordie]

13 minutes ago, Happy Grumpy said:

What's the new law?

 

The owner can only demand one month's deposit along with the first month's rent, as opposed to first month's rent and 2 month's deposit?

 

And any that are currently renting out a place where they have received 2 month's deposit have to refund one month now?

 

Is that correct?

 

 

Bit strange. I have always rented out my units as 2 month's deposit, and they can not pay for the final month if they ask, and the other month's worth will cover any bills etc.  

 

It only applies to you if you have 5 or more rental units.

regards worgeordie

[tropo]

2 hours ago, jerry921 said:

This seems like nonsense to me. What is the risk of renting under the terms of the new law? That the tenant will move out? How is that worse than just not leasing the apartment in the first place?

 

The new law may make furnished rentals harder to find, as it may cause lessors to convert from furnished to unfurnished because they can't get enough security deposit to cover damage to furnishings, but thinking they'll leave the unit sit vacant is over-the-top over-reaction.

My thoughts exactly. The only extra risk for landlords is a month's security deposit, and possibly losing some profit on padded electric bills.

 

Unfurnished units are too difficult to rent out because most tenants are transient. There won't be any change there. Possibly the quality of furnishings may go down, but most landlords are not putting good furniture in their units as it is.

 

 

[tropo]

25 minutes ago, Happy Grumpy said:

 

Bit strange. I have always rented out my units as 2 month's deposit, and they can not pay for the final month if they ask, and the other month's worth will cover any bills etc.  

 

 

I think that's a bit strange. If they don't pay for the last month, then you're only changing 1 month's deposit. The other month is rent, not a security deposit.

 

When I moved into my current apartment, I paid 3 months in all. It was organised through a real estate agent, and they are presently very quiet on the refund, suggesting it doesn't apply.

[newnative]

2 hours ago, shady86 said:

Will see more abandoned units as it's risker to rent out now.

Likely not.  Remember, if you rent less than 5 units the new law doesn't even apply. If you're renting more than 5 units are you going to 'abandon' them?  I doubt it.

[tropo]

3 minutes ago, newnative said:

Likely not.  Remember, if you rent less than 5 units the new law doesn't even apply. If you're renting more than 5 units are you going to 'abandon' them?  I doubt it.

My situation has to be handled delicately. I have a good landlord that promptly pays for repairs when required. Do I want to alienate him over a 30k deposit, is the question I must ask. I won't push this, but perhaps the real estate agent may come to the party if many others are. It's early days - time will tell.

[johng]

So more retro active laws...shouldn't the agreement be honoured until renewal time at which time a new agreement is made under the new law ?

[Happy Grumpy]

26 minutes ago, tropo said:

I think that's a bit strange. If they don't pay for the last month, then you're only changing 1 month's deposit.

So/so.

 

If they break the lease, I keep the 2 month's deposit.

 

With one month to go, if they ask, and I check everything is okay and they've been good tenants, I let one of the 2 month's deposit cover the final month.

[norrska]

3 hours ago, kannot said:

Wife deals with this daily ( estate  agent) and NO ONE she knows is  going to comply with these laws................and I dont blame them, way too easy for a tenant to bail on ANY contract, in fact it  makes the contracts virtually null and void.

Whilst there have been serious issues with some rse hole landlords never giving back deposits, for the most part they do from what she sees........ this is not a  one person viewpoint either, we are talking hundreds of condo contracts ending that she deals with and likewise her other agents/friends  in this line of work. 

However Chinese inflow is causing some serious issues, lets  just say honesty doesnt appear to be their best side. 

Sorry no choice.  You will have to obey the law or face the consequences.  Got a good laugh out of your tough talk though!

[tropo]

13 minutes ago, Happy Grumpy said:

So/so.

 

If they break the lease, I keep the 2 month's deposit.

 

With one month to go, if they ask, and I check everything is okay and they've been good tenants, I let one of the 2 month's deposit cover the final month.

You're a very nice landlord. My contract gives me an out with 30 days notice (I have a 2 years lease). Do you allow that?

[kannot]

3 hours ago, jerry921 said:

This seems like nonsense to me. What is the risk of renting under the terms of the new law? That the tenant will move out? How is that worse than just not leasing the apartment in the first place?

 

The new law may make furnished rentals harder to find, as it may cause lessors to convert from furnished to unfurnished because they can't get enough security deposit to cover damage to furnishings, but thinking they'll leave the unit sit vacant is over-the-top over-reaction.

Most owners  find tenants thru an agent, the agent gets one months  rent as commission, if the tenant leaves after 2  months the owner has  lost out big  time.

[Happy Grumpy]

14 minutes ago, tropo said:

My contract gives me an out with 30 days notice (I have a 2 years lease). Do you allow that?

Of course. 

[kannot]

14 minutes ago, norrska said:

Sorry no choice.  You will have to obey the law or face the consequences.  Got a good laugh out of your tough talk though!

funny, you have "no idea", many simply  will not    follow this  law  just like motorcycle helmet  laws and a whole  host of others.

Keep dreaming.

[kannot]

1 hour ago, Happy Grumpy said:

What's the new law?

 

The owner can only demand one month's deposit along with the first month's rent, as opposed to first month's rent and 2 month's deposit?

 

And any that are currently renting out a place where they have received 2 month's deposit have to refund one month now?

 

Is that correct?

 

 

Bit strange. I have always rented out my units as 2 month's deposit, and they can not pay for the final month if they ask, and the other month's worth will cover any bills etc.  

 

The part you omitted is it ONLY applies to owners of 5 units, if you own 4  then NO new  rules.

[tropo]

16 minutes ago, kannot said:

Most owners  find tenants thru an agent, the agent gets one months  rent as commission, if the tenant leaves after 2  months the owner has  lost out big  time.

 ... but paying the real estate's commission is just part of the business and shouldn't be considered as the tenant's responsibility. They always have the option of finding their own tenants. What's the alternative to paying the real estate's commission? In many cases it could be a vacant unit, costing the landlord even more in lost potential income. Apart from that, if the landlord finds a good agent, it's money well spent because the agent does quite a bit of work for their commission.

[mercman24]

well right from the start it has a big flaw, how the hell do i know if my landlord has 1 or 20  properties he rents out., i dont think he will be telling me this anytime soon do you, another law, that aint worth the paper it is written on

[brucec64]

Sorry no choice.  You will have to obey the law or face the consequences.  Got a good laugh out of your tough talk though!

Haha. Do you actually live in Thailand or are you referring to a country with rule of law?

Sent from my SM-N950U1 using Thailand Forum - Thaivisa mobile app

[brucec64]

The part you omitted is it ONLY applies to owners of 5 units, if you own 4  then NO new  rules.

I foresee many shell companies owning 4 condos being formed in the near future if this law is actually enforced.

Sent from my SM-N950U1 using Thailand Forum - Thaivisa mobile app

[smedly]

5 hours ago, kannot said:

Wife deals with this daily ( estate  agent) and NO ONE she knows is  going to comply with these laws................and I dont blame them, way too easy for a tenant to bail on ANY contract, in fact it  makes the contracts virtually null and void.

Whilst there have been serious issues with some rse hole landlords never giving back deposits, for the most part they do from what she sees........ this is not a  one person viewpoint either, we are talking hundreds of condo contracts ending that she deals with and likewise her other agents/friends  in this line of work. 

However Chinese inflow is causing some serious issues, lets  just say honesty doesnt appear to be their best side. 

sorry to burst your bubble but so what, the point being tenants pay rent, I have never seen a rental contract and neither would I get involved in one if I was renting, deposits are meant to cover damage which one month should easily cover, as for padding the utility bills - that crap has gone on long enough.

 

It is a buyers/renters market, that is the reality, how many vacant properties are there, market forces win out with supply outstripping demand for years by quite a margin, time to smell the cheese.

 

There are many bag holders out there that thought the Thai property market was the same as the west...………………..it isn't

[Srikcir]

3 hours ago, worgeordie said:

It only applies to you if you have 5 or more rental units.

regards worgeordie

"A question arises as to how the renter knows that the lessor has five or more units of residential leases, the threshold for the applicability of the existing law. In an apartment building with five rooms or more, the fact is conspicuous to establish. Complications ensue in a condo or single-house rental. The renter can only investigate by themselves to find out – they need to talk to a lot of people – which can be a challenge."

And if you don't speak Thai, really a challenge.

[rumak]

4 hours ago, worgeordie said:

 

I know THIS was not your post (it was Kannot....once the message apparatus gets something it refuses to let go !   so.....anyway :

The part you omitted is it ONLY applies to owners of 5 units, if you own 4  then NO new  rules.

 

Don't think this little fact will discourage the ten pages of horror stories concerning landlords.  There are good landlords and bad.   There are good tenants and bad.   Simple !