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Deciding on Thai tenants for monthly rental income.

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We live in a non tourist regional city in Thailand. 6 yrs ago we purchased a building and rented it out to a restaurant. They moved out in and we will never rent to a restaurant again due to the fire risk and they way the building gets trashed. But thats another story.

Now we have found a potential new tenant. They have been quite fussy to deal with but they are the best option. They are ok paying 55k baht a month

They want us to remove a kitchen suction unit as per the photo. They want to use the room for their business. I asked a company how much to replace it new and he said 80k baht.

We've had the sign up for a month and many random people calling asking to rent. The above team are 100% the best option.

Should we just bite the bullet and let them remove it and concrete all the holes up and paint it at their cost. If they become a long term tenant then it doesnt matter and the fact that we will never rent to a restaurant again. Wha t do you think?

Also, they operate via a company. A.I is telling me to ask for these docs:

  1. Power of Attorney (POA): Signed by the company’s 2 authorized directors, expressly granting you the authority to sign this lease agreement on behalf of the company.

  2. Company Affidavit (DBD Certificate): Issued by the Department of Business Development within the last 90 days.

  3. Copy of the 2 Authorized Directors’ ID Cards: (The directors who signed the POA), certified as a true copy.

  4. Copy of ID Card: Certified as a true copy.

The main guy is kind of giving excuses that the directors will give him POA to sign the contract- even though they live in our city. If we follow the affidavit and get copies of id cards then it should be legally binding. Do you agree?

thanks

IMG_9930.JPG

1) If you are never going to rent the premises out again to restaurant or like business, I cannot see that there is anything against to let your tenant remove the kitchen suction unit.

Normally — and I presume it is the same in Thailand, as it normally looks like it is — business rentals are so that the tenant can rebuilt and decorate the rented area to fit business, as long as it's in term with law and regulations. There might special clauses in a rental agreement, including one about to restore the rented back to formed stand when rental ends; it depends on the individual contracts. A deposit could be part of such an agreement.

2) If the registered directors of the company limited lives in same city, they should in my opinion be the ones signing the rental agreement.

You can check Thai company registrations online. For free you can see company status (active/defunct), registration date, registered capital, addresses, director names, and submitted annual accounts. You can search using company's name — best to use Thai translation, if it's an English name — or the 13-digit registration number. If they hesitate to give the ID-number to you, it's a classic red flag. The search can be done here:

https://www.dbd.go.th/en/hotService/online_service

However, you should have a lawyer with experience in business rental agreements to advise you.

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