What Kind Of Deposit Should We Collect?

[staccyy]

What the consensus?

Just found a farang family (with kids) who want to rent our property (Furnished house) for 3 months or more. What is rule for how much to charge for a security and a damage deposit? What about a deposit to hold it? They want to arrive over our peak season, so we want to cover our %&@* in-case they bow out.

Can our contract be in English only, legally?

Comments?

thanks...staccyy

[ClaudeFeller]

My experiences during last ten years:

I always demand 30 % advanced-payment if it was an Internet-booking to be sure they will arrive.

In your case they told you that they will stay at least three months, so you can ask one month advanced-payment.

And if people wanna stay longer then one month I let them pay 10.000 Bahts deposit on top and I give them a lease.

In this lease I list everything thats inside the house. Whenever my manager didn't make a lease I lost my bedsheets and my towels (and two refrigerators!!). Last but not least: They have to leave the house in a clean condition.

Cheers from Samui,

Claude Feller

Edited June 10, 2007 by ClaudeFeller

[chanchao]

Typically it should cover whatever of value you have inside, plus something for utility use if that's in your name, such as electric and telephone. So a deposit on a completely empty home would be less than on a home that's fully kitted out with furniture, air conditioning, etc, etc.

Ultimately it's what you can agree on with the renter.

> Can our contract be in English only, legally?

Heh. Legally the renter doesn't have a leg to stand on no matter what happens, and your risk is still the value of the stuff inside the house. So with rental contracts unlikely to be followed up on legally by either party, it might as well be in Farsi. Still, it would probably be a good idea to get one of those standard Thai forms that you have for all kinds of agreements including renting a house. That will have at least two witnesses on it in addition to you and the renter. That contract will have dotted lines to enter the monthly rent, deposits, and other agreements. In addition I would photograph everything in the house, the furniture, airconditioners, etc, and write all of that down and have you and the renter sign those pages.

[chanchao]

Clarification:

> Legally the renter doesn't have a leg to stand on

With 'renter' here I mean the person paying rent to the owner (you). Sorry if this was unclear.