Can a Commercial Landlord Really Do This?

[curious297]

Due to defamation laws, I am unable to go into full details however, there is a business located in a popular location in Thailand that has been running for many years. In January the business had cleared all debts until the government made yet another lockdown causing the business to run into financial difficulties due to the covid situation. The landlord has continually locked our doors (10+ times this year alone and more than this last year) with their own padlock and turning off the electric to the building in an attempt to get us to pay all outstanding bills + demanding additional deposits on top of what is listed in our lease agreement. Just recently, even though we managed to pay all outstanding arrears, the landlord has:

 

1. Landlords have added their own bracket and padlock to our doors and demanding a post dated cheque to cover the dept of additional deposits (not arrears) which they are requested above what is listed on our lease. We explained that we there was not enough funds in our account to write this cheque however, they still demanded it. Without the cheque, they insisted they would not reopen our doors and we would have to close the business for good. As the landlord already put their own personal lock on our business doors , we had to ask the landlord to give us access to our own business to take our cheque book from the company safe which, they did then promptly locked our doors behind us.

 

2. The landlord is demanding more money as additional security deposits (taking our paid deposits to around 1 million THB) which heavily effects our cash flow and ability to pay future bills and salaries etc.

3, Landlord recently had their maintenance man again outside our open business ready to close and padlock our doors (4pm) even though they knew we had paying customers on the premises. We have pictures / CCTV and time lines of the landlords actions.

4. The landlord asks us for our payment schedule for an outstanding balance. We state we need e.g. 2 weeks to clear the balance so they only give us 1 week or less then return and lock and barrier our business doors again.

5. The landlord even locks our doors and turns off electric at night so when staff and customers arrive the next morning, we have no access to our building. They will only open their lock and remove their barrier on receipt of more money.

6. The landlord keeps their big red and white, 2 metre x 1.5 metre no entry barrier right next to our business in anticipation for their next door lock.

7. It takes us days / weeks to recover every time they lock our doors as customers think we have closed / gone out of business.

8. The landlords have not giving us receipts for or paid deposits even though we have requested this from them.

9. We have expressed that by locking down the business, they are stopping us from making revenue to pay the outstanding balances. In this latest case, the landlord demands money for additional security deposits as all arrears are paid in full.

 

My questions are:

1.  What is the legality of what the landlord is doing?
2.  How much deposits can a landlord demand proportionally to the rental and utility costs of the commercial business?
3.  Are there any legal regulations under Covid for business operations under this time of force majeure?

 

There is much more to this story however, understanding the "TLDR - Too Long Didn't Read" crowd, I'm keeping to the main points.

[tonray]

This is a matter for a law firm representing you and certainly not ThaiVisa amateur legal eagles. Good luck with your situation.

[FritsSikkink]

You don't pay the rent, you are out. What does your contract say about this.

[curious297]

35 minutes ago, FritsSikkink said:

You don't pay the rent, you are out. What does your contract say about this.

All Bills had been paid in full however, they ask for more utility deposits over and beyond what is in our agreement. When we were late to pay these extra deposits, they sent a man to lock the doors with customers inside the premises.

[1FinickyOne]

1 hour ago, curious297 said:

understanding the "TLDR - Too Long Didn't Read" crowd,

That ship sailed long ago...

 

Seems obviously the landlord does not like you or want you there... no landlord likes a tenant who runs late in paying. He may have house payments or other obligations that money is slated for,... he may have someone else in line who will pay him more and pay him on time... 

 

That said, in these times, you might hope for some understanding but if he is within his rights, it is his property and he deserves timely payments... 

 

Do you feed your customers and then tell them pay me some time in the future if you can? I guess you want to be paid after every meal... 

[FritsSikkink]

48 minutes ago, curious297 said:

All Bills had been paid in full however, they ask for more utility deposits over and beyond what is in our agreement. When we were late to pay these extra deposits, they sent a man to lock the doors with customers inside the premises.

They weren't before January though, how many months where you behind

[Delight]

 Suspect the landlord simply wishes that you clear off.

That way he keeps the deposit and  gains the business

[dj230]

so you didn't pay bills and the landlord locked you out...that sounds quite normal

if he is demanding additional deposits now because you didn't pay bills the first time, that sounds normal to me too. Check your lease agreement, all the leases i've signed say if you fail to pay rent the owner can terminate the lease and keep the deposits, albeit not commercial leases.

 

Quote

 The landlord has continually locked our doors (10+ times this year alone and more than this last year) with their own padlock and turning off the electric to the building in an attempt to get us to pay all outstanding bills + demanding additional deposits on top of what is listed in our lease agreement. 

 

[thailand49]

Not sure if the ops is asking for the company he owns? or just a curious employee?  nevertheless something is missing here?

 

With all these questions if the owner of company hasn't contacted a lawyer it should, and if they already have a lawyer get a new one.  ???? 

[MrJ2U]

Time to get out of there.

 

With a landlord like that who needs enemies.

 

Probably should have done it before you paid up.

[malthebluff]

Sounds like he wants you to leave he probably has someone else if he sees the business making money. I had a friend who had a very good business and the rent went up 500 % over the years until that business was no longer good I would start to look at other places on the quiet 

[robblok]

Not sure ifs legal, but sounds like you are someone who does not pay so he wants extra securities and won't give you too much leeway. Legal or not I get where he is coming from.

 

You could go to court but that would cost you money and time so even if its not legal are you willing to spend the money and time to enforce your rights ? I would say better spend that money in paying the landlord a higher deposit. But that is just me you soured the relation first.

[kingstonkid]

It seems that you forgot the one rule when owning a business.  Have a good lawyer on retainer and pass all legal issues through him.  

 

The fact that you fell behind in paying him is a huge issue because it is his credit rating that takes a hit if he can't pay the bills.  Utility companies will demand a penalty as well as a deposit.

 

Banks do not care if you are late he has to pay them or pay a late fee.

 

Depending on how late you were and how erratic you are the new amount he wants is to ensure next time you are late he has enough to pay the bills before he kicks you out.

 

BTW yes he is harassing you but legally.  His greatest hope is that this problem child tenant will do a midnight move. 

 

If he has a tenant that pays on time great he makes money.

 

No tenant great he gets tax deduction can turn off power and water and save a bundle in taxes.

 

An erratic paying tenant is a pain in the assets.

[snowgard]

I am 100% sure the landlords doings is against the law. If you late to pay, him has the right to open a civil case against your company at court. Why you not called the police & a lawyer when him done it? What him done is (by my understandings from law) a criminal act.

Involve a lawyer. This behavior damage also your business.

[sead]

I understand that you like others have had a difficult time. But the landlord perhaps also has a hatd time and he also has checks to pay. Your problems should not be others. I do wish your business to prosper. 

Gl