Rental Security Deposit

[flightcrew1]

A friend who rents here in BKK called me yesterday to ask advice. She is moving back home and has rented in BKK in the same place for 2 plus years. She notified per her lease agreement that she will be vacating October 5 and that she would like her rental deposit returned shortly after. She was informed by the agent for the landlord that they would hold her rental deposit 24,000 (2 months deposti) for 3 months. The lease agreement says that deposit to be returned after termination of lease.

Any rules on this? As she is moving back home it will be difficult for her to follow up on this.

[longball53098]

A friend who rents here in BKK called me yesterday to ask advice. She is moving back home and has rented in BKK in the same place for 2 plus years. She notified per her lease agreement that she will be vacating October 5 and that she would like her rental deposit returned shortly after. She was informed by the agent for the landlord that they would hold her rental deposit 24,000 (2 months deposti) for 3 months. The lease agreement says that deposit to be returned after termination of lease.

Any rules on this? As she is moving back home it will be difficult for her to follow up on this.

If the lease says only this and no clear time frame then I think your stuck waiting,,,,,,,,,could be until eternity if no date or number of days is specified in the lease.

Edited September 5, 2008 by longball53098

[12DrinkMore]

You can kiss that 24,000 goodbye, particularly as the owner has been told that the tenant is moving back home, presumably abroad. The owner will have already calculated that it will cost more trying to recover the deposit than the 24,000 Baht. And don't forget the list of items which will "have to be repaired".

I always consider these "returnable deposits" as part of the rent. If they get repaid, then I'm very happy.

Same issues in the UK and probably most places.

[PattayaParent]

Obviously the landlord needs to keep the deposit until he is sure that all the utility, 'phone, internet, satellite bills etc. are paid so that could reasonably take 2 months, 3 seems a little long.

She could always get a friend (you?) to collect any refund on her behalf and transfer it to her overseas bank account.

[flightcrew1]

Obviously the landlord needs to keep the deposit until he is sure that all the utility, 'phone, internet, satellite bills etc. are paid so that could reasonably take 2 months, 3 seems a little long.

She could always get a friend (you?) to collect any refund on her behalf and transfer it to her overseas bank account.

Sure I also said some amount needs to be held. Her average utility,phone (no internet, satellite) is no more than 3000 in any given month. Anyway per several friends suggestions, including me, we told her to find some influential Thai person which she did and they have now agreed to return most of the deposit before leaving. It's just a shame she has to leave with a bad taste in her mouth as she was always the perfect tenant.

One Thai landlord who she knows and is quite honest quoted a Thai idiom. "Once you give sugar cane to an elephant you cant take it away" Love it! No explanation needed.

[quiksilva]

Hound them, call every other day if needs be, but do not give up. get your wife to call too and alternate calls.

I have also had my wife call the consumer protection hotline 1654 and complain about the landlord too, and whilst its not their specific remit they may help too if you ask nicely.

[Lucifer]

You can kiss that 24,000 goodbye, particularly as the owner has been told that the tenant is moving back home, presumably abroad. The owner will have already calculated that it will cost more trying to recover the deposit than the 24,000 Baht. And don't forget the list of items which will "have to be repaired".

I always consider these "returnable deposits" as part of the rent. If they get repaid, then I'm very happy.

Same issues in the UK and probably most places.

No longer true. In the UK, the landlord, or usually the estate agent, keeps the deposit in a separate bank account. This is the law now.

The deposit must be returned, less any agreed work required, including any interest earned.

[quiksilva]

Interesting, Thailand's escrow law could probably be used for this. It would require a very detailed escrow agreement, but it could be a great way for landlord's to set themselves apart from the crowd.

Worth exploring further I think.

[dotcom]

2 months rent as deposit is crazy. One month is the norm.

[LaReina]

It is a common practice in Thailand I should think and not directed at Farangs.

My Thai gf left the country in April, and her "thai" landlady REFUSED to deposit the deposit into her Thai account. The landlord told her on the phone "you dont need the money".

The sad part is, she found a tenant for the landlord before she moved out.

At the end of the day, it is a toss up.

[yabaaaa]

2 months rent as deposit is crazy. One month is the norm.

Nooooo 2 months is the norm, as a landlord i try to cover the costs of "what if" what if the tenant does runner with our 32" flatscren tv's??

Our rents are 14000 per month, tv is double that almost, thats what our deposits are for and for any other damage caused. No problems so far but....you never know.

[yabaaaa]

It is a common practice in Thailand I should think and not directed at Farangs.

My Thai gf left the country in April, and her "thai" landlady REFUSED to deposit the deposit into her Thai account. The landlord told her on the phone "you dont need the money".

The sad part is, she found a tenant for the landlord before she moved out.

At the end of the day, it is a toss up.

As a landlord I put the prevous tenants e mail addresse on our website and comments from them (with their permission) so new tenants can check with them how we treated them and if they got their deposits back before accepting our terms.

Sorry can't put our www here but can pm if want it.

Edited September 5, 2008 by yabaaaa

[12DrinkMore]

You can kiss that 24,000 goodbye, particularly as the owner has been told that the tenant is moving back home, presumably abroad. The owner will have already calculated that it will cost more trying to recover the deposit than the 24,000 Baht. And don't forget the list of items which will "have to be repaired".

I always consider these "returnable deposits" as part of the rent. If they get repaid, then I'm very happy.

Same issues in the UK and probably most places.

No longer true. In the UK, the landlord, or usually the estate agent, keeps the deposit in a separate bank account. This is the law now.

The deposit must be returned, less any agreed work required, including any interest earned.

It's been a long time since I was in the UK renting property. But at least something positive has happened over there.

[jojothai]

You can kiss that 24,000 goodbye, particularly as the owner has been told that the tenant is moving back home, presumably abroad. The owner will have already calculated that it will cost more trying to recover the deposit than the 24,000 Baht. And don't forget the list of items which will "have to be repaired".

I always consider these "returnable deposits" as part of the rent. If they get repaid, then I'm very happy.

Same issues in the UK and probably most places.

No longer true. In the UK, the landlord, or usually the estate agent, keeps the deposit in a separate bank account. This is the law now.

The deposit must be returned, less any agreed work required, including any interest earned.

It's been a long time since I was in the UK renting property. But at least something positive has happened over there.

In the UK, if you have a formal agreement it has always been the law in my lifetime that the deposit is returned less any deductions necessary. Unscrupulous landlords do not always have proper agreements and/or take advantage. As far as I am aware there are no provisions in current agreements for any interest on deposits. I use one of the biggest agents in the UK. They are one of the bigest Axxx covering organizations I have ever known, and would have it included if the law said so.

There are recently new provisions in the UK providing a form of deposit security protection scheme where both parties are protected and agreement has to be made on deductions. This does involve the agent and landlord registering into the scheme. The money is still held by the agent but I am not sure if it has to be held in a separate bank account.

For Thailand it is normal to have two months deposit.

One month is not enough to cover potential liabilities.

All contracts I have seen say the deposit will be returned after all utilities bills have been settled and some even say that it is expected to take up to 2 months.

I have had some problems before when I was renting. One particularly bad where they claimed damages to carpet that were nonsense.

However most have been fine although it does take nearly two months to get the deposit back since clearing utilities takes almost six weeks.

I rent one condo and if the tenant is good and has looked after the place I usually allow them not to pay the last month. Then I effectively keep one month deposit for outstanding utility bills which is sufficient, but it does take 4 to 6 weeks to clear that.

You do get bad tenants occasionally so dont expect many landlords to be as lenient.

Trust this is some guidance

jojothai

[lotus eater]

I'm intending to rent an unfurnished house (in Chiang Mai). What would be a fair deposit - ie number of months?

For furnished rentals here it seems to vary between 1 and 3. But for unfurnished?

I'm very keen on the house, so I don't want to walk away from a deal if only this is a problem - but would like to know the 'market facts'.

[Moonfruit]

Deposit should always be 2 months, for furnished or unfurnished. Any more is just too high in relation to the rental amount, while any lower doesnt cover the owners risk of being fleeced in some way or another.

Usual time frame for the return of a deposit would be 45 days on any contract i would sign. That would give enough time for the outstanding bills to come through, and be paid at a leisurely pace and for the money to be transferred to me.

Same all over the world methinks. All these moaners and groaners about security deposits being too high, and rents being too high and the risks of not getting it returned would seem to not own any property anywhere. Its all about risk, and how much a person should be paid to take on that risk. Yes, there are shisters the world over who will not give you your deposit back, however it is dam_n rare. Its a business after all and the majority of businesses dont want to sully their reputation!