Breaking a Lease - problems?

[bbi1]

As a tenant if you were to say break a one year lease after staying there for a few months, what problems could you face? I know that you would lose your 2 month's deposit but would the owner sue you or chase you for the rest of the money for the one year's lease? What type of problems could happen?

Edited February 6, 2019 by bbi1

[ukrules]

What does the actual lease say ?

 

Normally there is some provision for either party to give notice at any point during the actual term of the lease.

 

[blackcab]

You will lose your deposit. If the property is left in a reasonable condition that will be the end of it. 

 

If you have utility bills, etc. then it's going to be better to pay them.

[richard_smith237]

If your contract includes a 'Diplomatic Clause' permitting termination of the agreement due to circumstances beyond their control it may be possible to receive the security deposit... 

 

But, no many people do know about these clauses. Additionally, landlords in Bangkok can be a law unto themselves, stories of a unscrupulous behavior are not uncommon. 

 

For breaking a lease agreement I would expect the loss of any security deposit

The security deposit may or may be used to pay any existing bills if you were to simply 'hightail-it'... but the possibility exists that the landlord makes trouble. 

 

Thus: The security deposit covers your breach of contract, I don't think a landlord could successfully push any further for loss of revenue, and if they tried, have they declared and paid taxes on their rental income etc... 

If the place is as you found it with no damage, any further issues would be avoided by paying up the remaining bills....

 

Therefor, if you have to leave you'll lose your deposit. Pay the remaining bills and that's it... 

 

 

 

 

[smutcakes]

5 hours ago, richard_smith237 said:

If your contract includes a 'Diplomatic Clause' permitting termination of the agreement due to circumstances beyond their control it may be possible to receive the security deposit... 

 

But, no many people do know about these clauses. Additionally, landlords in Bangkok can be a law unto themselves, stories of a unscrupulous behavior are not uncommon. 

 

For breaking a lease agreement I would expect the loss of any security deposit

The security deposit may or may be used to pay any existing bills if you were to simply 'hightail-it'... but the possibility exists that the landlord makes trouble. 

 

Thus: The security deposit covers your breach of contract, I don't think a landlord could successfully push any further for loss of revenue, and if they tried, have they declared and paid taxes on their rental income etc... 

If the place is as you found it with no damage, any further issues would be avoided by paying up the remaining bills....

 

Therefor, if you have to leave you'll lose your deposit. Pay the remaining bills and that's it... 

 

 

 

 

I think strictly speaking the loss of the deposit does not cover the breach of contract. If you have a contract for a year, legally you are still liable for the entire years rent, but given the time/cost involved of for a landlord to pursue this in residential leasing cases they are very unlikely to pursue you for the remainder of the monies owed.

 

Its a popular misconception that forfeiture of deposit allows you to break the contract, and you would legally still be bound to pay the unpaid rent. If you could just walk away with leaving the deposit what is the point in signing a lease agreement for any amount of time over what the deposit amount is? eg 2 months. Essentially you would have a built in break clause. The point of having a longer contract is security of tenure for the lessee and guaranteed income for the lease length for the landlord and as such landlords are willing to take a reduced rental for longer term leases (guaranteed income).

 

I would just speak to the landlord, explain the situation cordially and you should be fine leaving the place clean, bills paid and forfeiting the deposit.

[remorhaz]

5 hours ago, smutcakes said:

I think strictly speaking the loss of the deposit does not cover the breach of contract. If you have a contract for a year, legally you are still liable for the entire years rent, but given the time/cost involved of for a landlord to pursue this in residential leasing cases they are very unlikely to pursue you for the remainder of the monies owed.

 

Its a popular misconception that forfeiture of deposit allows you to break the contract, and you would legally still be bound to pay the unpaid rent. If you could just walk away with leaving the deposit what is the point in signing a lease agreement for any amount of time over what the deposit amount is? eg 2 months. Essentially you would have a built in break clause. The point of having a longer contract is security of tenure for the lessee and guaranteed income for the lease length for the landlord and as such landlords are willing to take a reduced rental for longer term leases (guaranteed income).

 

I would just speak to the landlord, explain the situation cordially and you should be fine leaving the place clean, bills paid and forfeiting the deposit.

I echo this.  Offer the deposit as you're never going to get it back anyway and try to reason with the Landlord.  If you offer to pay one additional months rent that will always help and i've done this without issue.  Thais never refuse money today for possible money tomorrow so you're better off dangling the baht in front of their nose and then doubling down with the "keep the deposit" (although this they would do anyway regardless)

[alex8912]

13 hours ago, ukrules said:

What does the actual lease say ?

 

Normally there is some provision for either party to give notice at any point during the actual term of the lease.

 

Then that is NOT a lease it’s a tenancy at will and many posters seem to not know this. Why the hell as a landlord would you sign a one year lease with someone if you were easily willing to break it at ANY time during the contract with a 30 or 60 day notice? Why would you offer a lower rent as most landlords do for a 12 month lease? 

I think the OP has to understand there could and SHOULD be more penalties for breaking a one year lease a few months into a 12 month contract. 

For example if you want to leave Feb 28 and YOU and the owner start to look for a new tenant at the SAME rent and one can’t be found for March 1 or April 1 or even May 1 but one is found for May 15 th. YOU should pay all rent until May 15 that is YOUR obligation.  If the owner agrees to take someone sooner at a lower rent for example 16k per month compared to your 20k per month then YOU need to pay the difference in all the remaining months of the lease which could be more than your deposit’s. Did you really pay a 2 month security deposit or did you pay a last month rent deposit and a one month Secuity deposit? Those are also two different things. 

It seems people who have never been a long term landlord always have the wrong opinion about what exactly a 12  month rental contract is. The owner should NOT have to pay one baht more than what you signed up for in the beginning. You can’t break a lease contract 2 months into it because you found a better rent elsewhere or feel like moving or going home etc. You both have to mitigate the balance of lease and it often costs more than 2 months rent. Try to break a lease on a car someday it’s even more difficult. 

[hugh2121]

A lease properly registered with the government land office cannot be broken by one party. Both parties must be in agreement. If it is not registered it can be broken at any time.

[scorecard]

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[ukrules]

33 minutes ago, hugh2121 said:

A lease properly registered with the government land office cannot be broken by one party. Both parties must be in agreement. If it is not registered it can be broken at any time.

In my experience almost none of them are registered with duty paid stamps attached.

[smutcakes]

1 hour ago, hugh2121 said:

A lease properly registered with the government land office cannot be broken by one party. Both parties must be in agreement. If it is not registered it can be broken at any time.

Only leases more than 3 years can be registered.

[Straight8]

15 hours ago, blackcab said:

You will lose your deposit. If the property is left in a reasonable condition that will be the end of it. 

 

If you have utility bills, etc. then it's going to be better to pay them.

Don't you mean in the same condition (or better, can't see the owner complaining about that) that you got it in.

 

Guess there will always be, something both sides denying.

[seancbk]

18 hours ago, bbi1 said:

As a tenant if you were to say break a one year lease after staying there for a few months, what problems could you face? I know that you would lose your 2 month's deposit but would the owner sue you or chase you for the rest of the money for the one year's lease? What type of problems could happen?

 

I had to break a one year lease here in Bangkok after only a few months.  I told my landlord I needed to move out early, forfeited my 100,000 THB deposit and moved out.   
There was no issue beyond that.

Have you considered actually speaking to your landlord or the agent that got you the apartment?   

[MyFriend You]

On 2/6/2019 at 9:09 PM, alex8912 said:

Then that is NOT a lease it’s a tenancy at will and many posters seem to not know this. Why the hell as a landlord would you sign a one year lease with someone if you were easily willing to break it at ANY time during the contract with a 30 or 60 day notice? Why would you offer a lower rent as most landlords do for a 12 month lease? 

I think the OP has to understand there could and SHOULD be more penalties for breaking a one year lease a few months into a 12 month contract. 

For example if you want to leave Feb 28 and YOU and the owner start to look for a new tenant at the SAME rent and one can’t be found for March 1 or April 1 or even May 1 but one is found for May 15 th. YOU should pay all rent until May 15 that is YOUR obligation.  If the owner agrees to take someone sooner at a lower rent for example 16k per month compared to your 20k per month then YOU need to pay the difference in all the remaining months of the lease which could be more than your deposit’s. Did you really pay a 2 month security deposit or did you pay a last month rent deposit and a one month Secuity deposit? Those are also two different things. 

It seems people who have never been a long term landlord always have the wrong opinion about what exactly a 12  month rental contract is. The owner should NOT have to pay one baht more than what you signed up for in the beginning. You can’t break a lease contract 2 months into it because you found a better rent elsewhere or feel like moving or going home etc. You both have to mitigate the balance of lease and it often costs more than 2 months rent. Try to break a lease on a car someday it’s even more difficult. 

Read Post #13  but I agree with the first/last months rent is not a security deposit, they should be and are separate -  in Thailand it is not enforceable for a landlord to require the renter pay the total rent left over on a one year lease if he/she moves out early..........if that was the case, then the landlord would not be able to rent the property until the lease was complete...............if that clause is not written exactly that the renter can't break the lease without paying the remainder of the year, then its all to do about nothing..............

[indepth]

 I had a one year lease, told the agent i was moving out after 6 months, and did. I didnt worry about my security deposit. I could write dozens of lines about ,laws, what ifs, mabys, etc. Aint necessary. Just do it, simple as that. 

[smutcakes]

3 hours ago, indepth said:

 I had a one year lease, told the agent i was moving out after 6 months, and did. I didnt worry about my security deposit. I could write dozens of lines about ,laws, what ifs, mabys, etc. Aint necessary. Just do it, simple as that. 

And make sure you come on here after to start a thread on how shit/corrupt/(insert any other derogatory term) Thai Landlords are.