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After the first year rent. Real estate company forcing a full other year.


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This is more legal advice.  I rented a house in Pattaya region, fairly good price for the offering, on condition have one year lease.  Now this year is almost over.  It is ok for me to stay, but not with the OBLIGATION of a full new year. As for many, Covid times are unsure, what will happen for me and the place I need to go.

 

If the owner, Chinese, would not object to that, he says another year must be taken, as the real estate agent, put in the contract, if the tenant stays after that year, it is re-conducted for 12 months and he AGAIN GETS HIS COMMISION!   I was informed this is illegal. First, Thai law seems to stipulate that the owner /real estate has the right to ask this for the first year, but then it is on months basis, and the tenant, cant make an end to the contract with one or two months notice.  Further, beside it is illegal after that year to demand a new year contract, it seems that if the contract is   only in English and not in Thai, it has no value at all, and it then probably is not even registered.

 

I have really the impression, that the owner, would not mind me staying on month basis, but that he is afraid of trouble with the real estate company, who will force him to pay another commission. On my side, I have given the owner peace of mind of a year, but now every month is bonus. I had to pay 2 months bound, that if I agree on another year, will force me to either pay that  year and stay, or not seeing my bound back, if ever I would leave in 6 or 18 months.

 

I know some are going to say, I loose that bound anyway, I not had that experience in the past.  I just not agree, I cannot get it back, if I leave not exactly after a year rent every time. Also In previous rental deals, it never was mentioned, that the real estate company had commission after this first year.

Thank you for feedback on this.

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During the last 30 days of your lease or contract is when you generally notice the agent or owner of your intent to stay.  A new contract will then be drawn up, but you can negotiate the rent price to your hearts content.  Many places around that may be similar to yours might be cheaper.  It never hurts to ask.  Negotiate the amount and the time frame.  Ensure it is written into the contract you sign, and ensure that the prior deposit you paid is also listed with the amount paid and when and including that it was for the security deposit on the place you are currently renting.  This keeps the agent from trying to say you never paid the deposit.  If the owner does not want to, or the agent says he does not want to accept the terms, then I would move as there are many available properties now.  You can always try and negotiate directly with the owner if you can, if not I wish you the best.

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Its pretty normal.

 

Thais like 12 month contracts.

 

Works in your favour too - I rented a condo for 10 years (yes, 10 renewals) and they liked me so much they never put the rent up.

 

Swings and roundabouts - this is Thailand.

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Theres nothing illegal. Read your Contract exactly. 12 Months are common in Thailand, what means, they only rent out for this term or you negotiate a shorter Contract and pay more per Months.

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1 minute ago, timendres said:

In my case, renew 12 months, or move out.

Landlord is only interested in 12 month contracts.

 

I cannot afford to loose 2 months of bound. I asked some people around and most get from second year one or two months notice.  I live her for a year, so I can stay maybe even 3 years. But not want to loose the bound, if I not check out after another year. 

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The owner has decided to use an agent to manage his property and the the fact that he/she has agreed to pay the agent is not really your concern and your comment that it is illegal to require a new agreement at the termination of the present one is pure BS.  As previously stated, the owner can offer any terms and you have the option to accept or reject.  It's the Golden Rule. " He who has the gold makes the rules."

 

 

 

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My landlord wanted a year and then we had no contract for many years, it wasn’t even month to month, it was a verbal arrangement that suited us both. I guess you could move and take another year contract in another property.

 

I think your issue is also with the estate agents commission, when after the first year he has done nothing, the property / tenant has already been found.

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9 minutes ago, recom273 said:

My landlord wanted a year and then we had no contract for many years, it wasn’t even month to month, it was a verbal arrangement that suited us both. I guess you could move and take another year contract in another property.

 

I think your issue is also with the estate agents commission, when after the first year he has done nothing, the property / tenant has already been found.

Exactly.  Like I said the owner not mind to change the contract, it is he is committed to pay again the real estate company, if I stay there. That is all the point, nothing else.

 

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I have not had to do this in the past. 

 

You can continue to stay there on a month by month basis. But, as neither the owner or you are tied to a contract the owner could ask you to leave at any time, i.e. if someone else were to want to rent the property. 

 

This is unlikely (during a very low Covid period) - thus: you can simply say no and if they want you to move out, so be it. 

 

What is happening here is obvious to anyone reading this thread: 

The Agent is attempting to ‘spin more money’ by getting you to sign a new contract (and taking a months rent as payment, or even more with some agents).

The owner probably doesn’t even know about this. IF you can contact the owner directly, do so.

 

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8 hours ago, richard_smith237 said:

I have not had to do this in the past. 

 

You can continue to stay there on a month by month basis. But, as neither the owner or you are tied to a contract the owner could ask you to leave at any time, i.e. if someone else were to want to rent the property. 

 

This is unlikely (during a very low Covid period) - thus: you can simply say no and if they want you to move out, so be it. 

 

What is happening here is obvious to anyone reading this thread: 

The Agent is attempting to ‘spin more money’ by getting you to sign a new contract (and taking a months rent as payment, or even more with some agents).

The owner probably doesn’t even know about this. IF you can contact the owner directly, do so.

 

  I am in contact with owner, he prefers me to stay, but he is scared of real estate agent, and is in China.  As in original contract the real estate agent, put clearly, that the owner has to pay him another month if the renter stays.   I could draw another contract, but then it not protect us from real estate agent, if he want his part still. 

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i understand the year lease  .. 

the only problem i see is if   ... noisy neighbors, poor maintenance , bad neighbors, or many of the usual problems i read about here in TV ..you cant leave and get money back .. i guess u could have a disclaimer in the contract .. but good luck enforcing it .... in thailand it is not in the foreigners favor ..or even equal .. 

so luck to ya 

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  • 1 month later...

The start of the problem here is the contract your landlord agreed with the agent. A vast majority of standard contracts give the agent a further commission for extensions and often that is paid upfront, for the whole of the contract term, at renewal, which if say it was one month, would be covered by part of your deposit. In effect, your landlord is only getting 11 month's rent each year and the agent is collecting 1 month.

Therefore, the owner cannot vary this without putting themselves in a difficult position.

However, there is no law which states an extension has to be annual, even if the first contract was annual, unless that is an express provision in your original agreement, which you should have and could have objected to.

If you do not sign a new contract but simply continue to pay monthly, then that is also legal and the agent cannot force you out. However, they could put pressure on an inexperienced landlord who does not know what his true options are.

Your deposit is not at further risk because you do not sign an annual extension.

You can counter offer of course, stating that you will sign for another year but with a break clause only on your side at say 6 months, with 1 month's notice. This gives you security and flexibility but agents don't like it because they may have to pay back a commission if you leave early. The way round this is for you to make sure that the agent takes the commission on a monthly basis and does not request it up front.

Even if you stay, you can have a brand new contract drawn up. It does not have to be an extension of the existing one. The landlord can do the same with the agent.

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  • 4 months later...

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