Condo lease - one year or 2 years?

[DodgerRodger]

It seems there are significant discounts available if signing a 2 year lease over traditional one year.  But from what I've read on this forum, I can't see any disadvantage to having a 2 year lease.  If, for example I took a 2 year lease and I needed to move out urgently after 6 months or 18 months, the penalty would just be forfeiture of the deposit in both cases.  Or am I missing something?  Thanks in advance for any advice here.

[Peterw42]

Depends what written in the lease, some may mean loosing deposit, others may have a specific penalty. There is usually a clause covering early termination of lease

[Capitalist]

Interesting question. How much are these “significant discounts” usually?

I was thinking of buying as I want to do some very light renovation and make it to my own style, but if I could get a 2 or 3 yr lease for very cheap, that might be a good alternative.

[Pmbkk]

It depends on your contract. In general you cannot just walk away just forfeiting your deposit.

If you could,  someone could just smash up a condo and live there until the landlord came around when payment wasn't made - maybe 5-6 weeks into the 2 month deposit.

 

If the contract is for one year or two years that is the contract period unless there is an explicit exit clause in the contract.  The deposit is to cover any non-payments, damage etc - it does not cover unpaid rent.

 

You will be charged x per day on any late payment after usually 8/15 days.

 

Don't forget your landlord has your passport/visa details and can very quickly and simply make it difficult for you if breaking contracts.

 

 

@Capitalist - I would advice against buying unless you're here. I just sold a couple of condo's as my Thai wife was sick of dealing with the issues ( and our condo's were very nice in CBD - don't ever do fully furnished). Don't forget you are also responsible for juristic fees etc ( which can be very high in good quality condos - in addition to new lifts, painting etc ).

 

I still have rental properties, but I wouldn't buy to let in Thailand again. You're better finding a nice area, if flexible you can move as you wish to different areas/towns. That way you can also change your neighbours !!

 

[smutcakes]

If you sign a lease for 2 years and leave after 6 months, unless there was a break clause you would be on the hook legally for the remaining 18 months, not just despot forfeiture. Whether the landlord would bother chasing and pursuing it is another matter.

 

If this was not the case, no landlord would have any point giving any discount if the tenant could just leave, and may as well keep the lease month to month with no discount.