Landlords Gouging Flood Victims With High Rents: Thailand

[webfact]

Landlords gouging victims with high rents

PETCHANET PRATRUANGKRAI

THE NATION

Some flood victims taking refuge in apartments and condominiums have complained that they are being charged unfairly high rents.

Many complaints were filed to the Internal Trade Department during the past week that landlords and building owners had jacked up their rental fees by as much as 100 per cent during this critical period.

A flood victim in Nonthaburi province said a condominium owner in Rattanathibeth Road had doubled the rent from the normal Bt3,500-Bt4,000 to Bt7,000 per month. The owner also asked for a guarantee payment of Bt2,000 excluding electricity costs. An apartment building in the Sanambinnam area of Nonthaburi has increased the monthly rent from Bt2,000-Bt2,500 to Bt3,000-Bt3,500.

Although renters know they are being overcharged, they say they have to bear the cost as they still need to work and watch over their assets. They called for relevant government agencies to deal with this unfair practice urgently, which is adding to flood victims' suffering.

The Commerce Ministry has been informed about the problem but says it has no direct authorisation to control rents.

Rent gouging is not the only complaint heard by the ministry's Internal Trade Department about unfair trade practices through its hotline 1569 during the flooding.

A total of 1,208 calls to the hotline were received from October 1-26. Of those, 428 were complaints about high prices of foods and beverages, mainly pork, egg, cooked food, and drinking water; construction materials such as brick and cement; and essential goods used for flood relief such as lifejackets and boots.

Another 780 callers asked for the department's advice on where to buy sand, bricks, cement, and other goods needed to deal with the flooding.

So far, the department has punished 19 unscrupulous traders with fines totalling Bt43,400.

Since January, the department has fielded 5,640 calls to its hotline.

-- The Nation 2011-10-29

[bkkjames]

Sounds like high season at any hotel.

[travelmann]

Hm many problems here I too have been asked " have you got a room for a month"

My fear is

they move in not only themselves but 5-6 other people into a studio room , dont want to pay a big deposit and then dissapear after the month leaving my room destroyed, what they want is a room at a 12 month price for 1 month, well it aint hapening in one of my units

You want to stay a month your'e gonna pay a 3 month price.

[leo12345]

Hm many problems here I too have been asked " have you got a room for a month"

My fear is

they move in not only themselves but 5-6 other people into a studio room , dont want to pay a big deposit and then dissapear after the month leaving my room destroyed, what they want is a room at a 12 month price for 1 month, well it aint hapening in one of my units

You want to stay a month your'e gonna pay a 3 month price.

Its people like you that are making this situation so bad. And if you are a westerner then its DEFINITELY people like you that make the rest of us look bad.

Why could you not just do the same price and take a larger deposit???

People are in hard times here.

I would love to have encountered you on my travels to find a condo after my house flooded>

[sirchai]

Hm many problems here I too have been asked " have you got a room for a month"

My fear is

they move in not only themselves but 5-6 other people into a studio room , dont want to pay a big deposit and then dissapear after the month leaving my room destroyed, what they want is a room at a 12 month price for 1 month, well it aint hapening in one of my units

You want to stay a month your'e gonna pay a 3 month price.

Pretty strange post.......

[robblok]

Hm many problems here I too have been asked " have you got a room for a month"

My fear is

they move in not only themselves but 5-6 other people into a studio room , dont want to pay a big deposit and then dissapear after the month leaving my room destroyed, what they want is a room at a 12 month price for 1 month, well it aint hapening in one of my units

You want to stay a month your'e gonna pay a 3 month price.

I see part of your problem, but i think they are talking here about people already in a room that they have rented a long time. Now the landlord is forcing them to either pay higher cost or move out during a flooding.

In your case i do understand it but a higher deposit should cover it.

[farang000999]

i think they call this supply and demand.

[robblok]

i think they call this supply and demand.

I think its pretty unfair to change the rent price at a time like this for EXISTING lease contracts.

[BigRick]

So Thais are complaining they are being "Faranged" wonder if the irony of someone charging more because of who you or the situation sinks in on them?

[FOODLOVER]

It should say some people are gouging! We are open and free to all affected at our Inn for as long as it takes in Pattaya! All rooms are 2 room suites and comes with 15 new Thai friends. New Slogan: Pattaya City of Angels ( We have been full since yesterday.) They were falanged in a good way!

Edited October 29, 2011 by FOODLOVER

[farang000999]

i think they call this supply and demand.

I think its pretty unfair to change the rent price at a time like this for EXISTING lease contracts.

if u already have a contract than demanding more money is illegal and against the contract. if the rooms are being rented without contract or a contract expires, that means the unit is back on the market and can be sold/rented at fair market value.

[farang000999]

It should say some people are gouging! We are open and free to all affected at our Inn for as long as it takes in Pattaya! All rooms are 2 room suites and comes with 15 new Thai friends. New Slogan: Pattaya City of Angels ( We have been full since yesterday.)

That is very decent of you. Good job!

[robblok]

i think they call this supply and demand.

I think its pretty unfair to change the rent price at a time like this for EXISTING lease contracts.

if u already have a contract than demanding more money is illegal and against the contract. if the rooms are being rented without contract or a contract expires, that means the unit is back on the market and can be sold/rented at fair market value.

Sure and in this case i can understand owners wanting more money. Especially if its for people wanting to say a month and probably do some damages. I am still in my home everything is flooded here. But i would not move away, ill wait this out.

[mussen]

Probably half the reason there is no food and water in many parts of flood affected areas. I'd pay double or more the price of goods if they were available. Someone could drive a ute to another provence, buy goods, come back to BKK and sell them and make a profit also. Kills 2 birds, people in BKK have food/water, and the people selling make a profit, but they are too scared of being arrested or fined. Well done to the government for implementing this law!

[robblok]

Probably half the reason there is no food and water in many parts of flood affected areas. I'd pay double or more the price of goods if they were available. Someone could drive a ute to another provence, buy goods, come back to BKK and sell them and make a profit also. Kills 2 birds, people in BKK have food/water, and the people selling make a profit, but they are too scared of being arrested or fined. Well done to the government for implementing this law!

Sure, but that is different from gouging. When the floods hit i started paying more at the restaurant i normally eat (inside the mu bahn always eat there) Just to cover her extra expenses she did not want to raise prices.

You want to pay extra.. and i would pay extra for some supplies too.. im cut of here the closest Big C is empty but we got enough oatmeal here for 2 weeks for sure maybe longer. Too bad no milk

[scorecard]

Hm many problems here I too have been asked " have you got a room for a month"

My fear is

they move in not only themselves but 5-6 other people into a studio room , dont want to pay a big deposit and then dissapear after the month leaving my room destroyed, what they want is a room at a 12 month price for 1 month, well it aint hapening in one of my units

You want to stay a month your'e gonna pay a 3 month price.

Its people like you that are making this situation so bad. And if you are a westerner then its DEFINITELY people like you that make the rest of us look bad.

Why could you not just do the same price and take a larger deposit???

People are in hard times here.

I would love to have encountered you on my travels to find a condo after my house flooded>

Dear OP, compassion seems to be a key word given the circumstances.

Put yourself on the other side of the picture, would you like others to show some compassion?

[mussen]

The OP article fails to state whether the people who are being charged increased rates were current tennants at that property or new tennants to that property.

Edited October 29, 2011 by mussen

[toenail]

Are the apartment/ condo owners happen to be Thai - Chinese?

[GentlemanJim]

Hm many problems here I too have been asked " have you got a room for a month"

My fear is

they move in not only themselves but 5-6 other people into a studio room , dont want to pay a big deposit and then dissapear after the month leaving my room destroyed, what they want is a room at a 12 month price for 1 month, well it aint hapening in one of my units

You want to stay a month your'e gonna pay a 3 month price.

Its people like you that are making this situation so bad. And if you are a westerner then its DEFINITELY people like you that make the rest of us look bad.

Why could you not just do the same price and take a larger deposit???

People are in hard times here.

I would love to have encountered you on my travels to find a condo after my house flooded>

Dear OP, compassion seems to be a key word given the circumstances.

Put yourself on the other side of the picture, would you like others to show some compassion?

You all make me laugh. Travelman has got it exactly right. Scorecard, will you have some compassion for Travelman and send him 100K baht to refurbish and refit his room when the occupants pi** off in a month without paying their bills because they dont have a one year contract and don;t care? The market drives the prices, that's why you pay double the price for a hotel room or a flight when you want to take your kids on holiday at easter. If someone is charging 4K a month rent next door then you cant/shouldn't charge 1500. You pay the going rate. I have not heard of people with existing long term contracts being charged an increase, that would be contestable in the local court.

Everyone wants water and eggs at the same price and complain at traders putting the prices up. Have you any idea of the costs associated with going and finding large stocks of bottled water, collecting it and delivering it? It is not a mass organised logistics system that is cheap in the long term, it is an expensive short term fix that requires time, effort and gasoline. Of course it is going to cost more, there are higher costs to incur by the trader. I can provide as many people with rice that need it. I just have to drive 3 hours to the border with Malaysia and stock up, but before I even sell it to you I have incurred 3K baht worth of fuel costs and a full days work to just collect the rice. Is your bag of rice going to go up in price? You do the maths, but to charge at the 'normal price' would mean I incur a massive loss, and that does not make sense for any trader.

[leo12345]

i think they call this supply and demand.

I think its pretty unfair to change the rent price at a time like this for EXISTING lease contracts.

if u already have a contract than demanding more money is illegal and against the contract. if the rooms are being rented without contract or a contract expires, that means the unit is back on the market and can be sold/rented at fair market value.

Sure and in this case i can understand owners wanting more money. Especially if its for people wanting to say a month and probably do some damages. I am still in my home everything is flooded here. But i would not move away, ill wait this out.

The solution is simple, to take a large deposit for short term rental.

The price should not go up for the room though and the larger deposit would cover for any damages occured

[GentlemanJim]

I think its pretty unfair to change the rent price at a time like this for EXISTING lease contracts.

if u already have a contract than demanding more money is illegal and against the contract. if the rooms are being rented without contract or a contract expires, that means the unit is back on the market and can be sold/rented at fair market value.

Sure and in this case i can understand owners wanting more money. Especially if its for people wanting to say a month and probably do some damages. I am still in my home everything is flooded here. But i would not move away, ill wait this out.

The solution is simple, to take a large deposit for short term rental.

The price should not go up for the room though and the larger deposit would cover for any damages occured

The end result would be the same though. People complaining they can't rent a property because you have increased the deposit price beyond their means. What you going to do? Let them pay the deposit monthly?

[leo12345]

Hm many problems here I too have been asked " have you got a room for a month"

My fear is

they move in not only themselves but 5-6 other people into a studio room , dont want to pay a big deposit and then dissapear after the month leaving my room destroyed, what they want is a room at a 12 month price for 1 month, well it aint hapening in one of my units

You want to stay a month your'e gonna pay a 3 month price.

Its people like you that are making this situation so bad. And if you are a westerner then its DEFINITELY people like you that make the rest of us look bad.

Why could you not just do the same price and take a larger deposit???

People are in hard times here.

I would love to have encountered you on my travels to find a condo after my house flooded>

Dear OP, compassion seems to be a key word given the circumstances.

Put yourself on the other side of the picture, would you like others to show some compassion?

You all make me laugh. Travelman has got it exactly right. Scorecard, will you have some compassion for Travelman and send him 100K baht to refurbish and refit his room when the occupants pi** off in a month without paying their bills because they dont have a one year contract and don;t care? The market drives the prices, that's why you pay double the price for a hotel room or a flight when you want to take your kids on holiday at easter. If someone is charging 4K a month rent next door then you cant/shouldn't charge 1500. You pay the going rate. I have not heard of people with existing long term contracts being charged an increase, that would be contestable in the local court.

Everyone wants water and eggs at the same price and complain at traders putting the prices up. Have you any idea of the costs associated with going and finding large stocks of bottled water, collecting it and delivering it? It is not a mass organised logistics system that is cheap in the long term, it is an expensive short term fix that requires time, effort and gasoline. Of course it is going to cost more, there are higher costs to incur by the trader. I can provide as many people with rice that need it. I just have to drive 3 hours to the border with Malaysia and stock up, but before I even sell it to you I have incurred 3K baht worth of fuel costs and a full days work to just collect the rice. Is your bag of rice going to go up in price? You do the maths, but to charge at the 'normal price' would mean I incur a massive loss, and that does not make sense for any trader.

This has nothing to do with eggs, rice or higher fees due to gasoline pirce increase.

This is not about business and making money. The people are in tough times, hotels at the moment are dropping their prices by upto adn over 70% for flood affected people.

Its so simple to just ask for a higher deposit and get their I.D so that you have record of their whereabouts if they do pi** off.

If cards were in the other hands I wonder what the ones overpricing would be saying?

[sausageandmash]

Don't think it has to. It's fairly obvious that they were new tenants trying to escape the flood. No-one would get away with raising rents to existing tenants.

The OP article fails to state whether the people who are being charged increased rates were current tennants at that property or new tennants to that property.

[fred110]

So Thais are complaining they are being "Faranged" wonder if the irony of someone charging more because of who you or the situation sinks in on them?

[leo12345]

The end result would be the same though. People complaining they can't rent a property because you have increased the deposit price beyond their means. What you going to do? Let them pay the deposit monthly?

If they really do not have the money then they would not be looking.

The point is that the ones who don't have the money are going into shelters, while the ones who do have money are being overcharged.

The owners could change the overcharging side to be a larger de[posit which on departure if there are no damages the customer gets their money back.

[qualtrough]

Hm many problems here I too have been asked " have you got a room for a month"

My fear is

they move in not only themselves but 5-6 other people into a studio room , dont want to pay a big deposit and then dissapear after the month leaving my room destroyed, what they want is a room at a 12 month price for 1 month, well it aint hapening in one of my units

You want to stay a month your'e gonna pay a 3 month price.

Its people like you that are making this situation so bad. And if you are a westerner then its DEFINITELY people like you that make the rest of us look bad.

Why could you not just do the same price and take a larger deposit???

People are in hard times here.

I would love to have encountered you on my travels to find a condo after my house flooded>

So right.

We were lucky. Rented a one bedroom apt across the street, last one, normal price. In any crisis there will be a-holes, Thailand no exception, but I have been impressed with what I have seen with my own eyes in our neighborhood so far.

[CMSteve]

I think one thing that has been missed is the owners right to charge more for short term clients. These people are not coming and asking for a 1 yr contract, they are asking for a single month. This will be more work for the owner/staff and effectively raise the operating costs of the building. This is almost guesthouse-ish. In that light, these rooms are very cheap.

[kjun12]

Sounds like high season at any hotel.

Do you just feel that you are compelled by some unnatural force to make your stupid & inane comments to a serious post?

[qualtrough]

Probably half the reason there is no food and water in many parts of flood affected areas. I'd pay double or more the price of goods if they were available. Someone could drive a ute to another provence, buy goods, come back to BKK and sell them and make a profit also. Kills 2 birds, people in BKK have food/water, and the people selling make a profit, but they are too scared of being arrested or fined. Well done to the government for implementing this law!

Do you really think the Thai government is unique in doing that during a crisis? If you think any other Thai government would have done any differently you are so deluded.

[elcent]

in some cases it explains the need for an emergency degree.

Some landlords are surely over the top and might lose all. I guess they're going to be filtered out for further procedure and tough tax checks. Good luck! Some of you have called that upon yourself.