Is it normal to ask for a year's worth of rent when renting a house?

[eldragon]

Is it normal to ask for a year's worth of rent when renting a house? What about two or three years worth or rent? And if you agree to do it, should you be getting a discount? A few of the houses I've looked at quote rent in a yearly price, but eventually come back to a monthly rate. But I know one of my Thai friends that rents commercial space from her friend pays the entire year's worth of rent at once. What's your experience?

[krisb]

Have heard of it when theres competition from others wanting to rent the same house.

[eldragon]

Have heard of it when theres competition from others wanting to rent the same house.

Okay. Thanks. But more than a year would be kinda ridiculous, right?

[rgs2001uk]

Would help if you told us exactly what you are talking about.

A house in a residential area, or a commercial property.

If for a house, no its unheard of to pay a years rent in advance.

For commercial space does the payment include key money upfront, with a monthly rent being paid?

[krisb]

Not sure I'd pay more than a year upfront. What happens if it turns out to be a landlord from hell? Doesn't do any maintenance or whatever. Even a year upfront I would never do but each t their own I suppose. Maybe depends how bad you want that property.

[krisb]

Would help if you told us exactly what you are talking about.

A house in a residential area, or a commercial property.

If for a house, no its unheard of to pay a years rent in advance.

For commercial space does the payment include key money upfront, with a monthly rent being paid?

Maybe you have never heard of it but it's common where there's low rental properties and lots of people looking to rent. Who would you decide on if 2 prospective tenants, both good people, wanted your property and 1 offered a years rent upfront?

[rgs2001uk]

^^^^, agreed, if its a commercial property.

The OP hasnt told us what it is he is renting, if its a shophouse in a commercial area, then for example, 250k key money and 10k per month rent.

Owner pays tax on the 10k rental, the other 250k key money will be tax free.

There is no benefit to the renter he will still be out of pocket for 370k, hence the dicount if paying upfront.

For normal renting of houses and condos in Bkk, there is an over supply, perhaps the OP can let us no where he is.

[dotpoom]

I rented a house for two years and paid all the rent up front. They wanted 12,000Bt. a month so I offered to pay two years in advance if they reduced it to 10,000 Bt. a month. They gladly accepted. I bought the house after the two years and had all the rent I paid deducted from the selling price. ...Were I to do the same as the person I bought it from I would gladly accept the same terms.

[pbeieio]

I have offered to pay six months in advance (in cash) but only for a substantial discount on the rent, thereafter I pay month to month at the same discounted rate.

[circusman]

Never pay anything in advance. Too many things can happen during the time period.

[elliottm]

Our town house rental was 2 month deposit & either monthly or annual payment which we secured for 10 months equivalent (with a further discount for early payment), multi-years open to negotiation with the trade-off between tenure security vs getting money back should you terminate early & the landlord has spent it all.

[how241]

Not sure I'd pay more than a year upfront. What happens if it turns out to be a landlord from hell? Doesn't do any maintenance or whatever. Even a year upfront I would never do but each t their own I suppose. Maybe depends how bad you want that property.

+1...Too risky...

[brit1984]

if you're a newbie in thailand, it could be some landlords are trying to take the piss

a few quoted us abnormal rents / deposits when we first arrived, so shop around

[rotary]

I guess if the property is in high demand but in being in Thailand for 25 plus years i have never done that pay up front deal. While I have owned a home most of the time I have rented many house's when working in other areas of the country. I would shy away from paying that advance rent if possible.

[jimbeam1]

Have heard of it when theres competition from others wanting to rent the same house.

Okay. Thanks. But more than a year would be kinda ridiculous, right?

More than a month or possibly two would be to much for my money.

Don't forget they might hold on to you money when you give notice.

Also I am sure you will find that house rental and commercial space are to totally different things.

jb1

[jimbeam1]

Would help if you told us exactly what you are talking about.

A house in a residential area, or a commercial property.

If for a house, no its unheard of to pay a years rent in advance.

For commercial space does the payment include key money upfront, with a monthly rent being paid?

Maybe you have never heard of it but it's common where there's low rental properties and lots of people looking to rent. Who would you decide on if 2 prospective tenants, both good people, wanted your property and 1 offered a years rent upfront?

If I wanted to rent and was confronted with that scenario, I would walk. But that might just be me. What would you do? Keeping in mind there are thousands of properties out there.

jb1

[Donnie Brasco]

Don't take the offer. The landlord will immediately be in a predatory position.

Turn the tables and exploit his indication that he needs the money.

Sit down with him and spell out that you want that reduction.

That's it.

"Sometimes, 'fuggedabowdit' just means fuggedabowdit. . . . "

[DLP]

If you pay a years rent up front you should negotiate a discount & get a discount otherwise i would just pay monthly.

[Dibbler]

There is a flood of rental houses on the market in and around Bangkok and larger cities due to speculation by property developers. Very much a renter's market except perhaps for higher quality properties that are in desirable inner city locations where renters are competing to get in. Shop around and get the lowest rental with the minimum forward commitment so you can break the lease agreement if necessary e.g. landlord won't do maintenance, unexpected change in your financial position, political situation goes pear-shaped and need to leave Thailand.

[khunPer]

When I was renting I used one year – even two year, once – prepaid rent to squeeze the price; often helps if a big pile of money “in one go” is available...

Edit: Presume some may wish the guarantee of a whole year (prepaid), if they already has a low price; I also sometimes see some of the (more) attractive houses being offerende for whole year only.

Edited April 25, 2014 by khunPer

[dao16]

I know a few Thais who pay it yearly (yes, for entire 2-floor houses, complete with room for a business on the ground floor). Personally, I wouldn't do it because I don't trust landlords to do anything once they have been paid. Good to have them reliant on me for money when I need something done (rare, but you never know).

[ggt]

Paying a years rent in advance...exposes you to more potential creative expenses during year...not to mention the owner selling the house with you in it...and then not wanting to return your advanced rent...I personally would not do so...and do not count on the signed contract...meaning anything to the Thais...it is just to keep you in line...not them...

[eldragon]

Thank you, everyone. I agree, it seems absurd to ask for even two years paid. Buyers market. Definitely is in this situation, knowing they need cash now.

Sent from my iPhone using Thaivisa Connect Thailand

[Mises]

Don't do more than 3 months. I was offered a large discount for a year up front on a new 4 bed + pool and took it. It was a new house and there was much wrong with it including unfiltered well water, no hot water at all and an electricity supply that would not run more than one air conditioner. To cut a long sorry story short it was only because my wife's cousin was much higher up in the police than her local "friend" that we got all our money back. She had used the money to pay debts (likely gambling)and actually sold the house dirt cheap to pay us.

You never know what the landlord's circumstances are or might become so just don't do it.

[KittenKong]

I paid a year's rent up-front in my condo two years in succession. For that I offered just over 50% of the rental asking price which was accepted. Sounds about right to me. The condo was in good order and I tested everything before moving in.

[onni4me]

From the owners perspective...I have invested a substantial money in my properties and would not allow anyone to rent without a considerable deposit. The risk is just too big. There are things that one can be easily destroyed or sold to someone worth hundreds of thousands of baht.

What comes to renting, I would not do it if it wouldn't be short-term or very affordable. Or making money out of it as a business.

Depending what you two agree but lease is valid only maximum 2 years without validating it in the court/land office.

[DLP]

From the owners perspective...I have invested a substantial money in my properties and would not allow anyone to rent without a considerable deposit. The risk is just too big. There are things that one can be easily destroyed or sold to someone worth hundreds of thousands of baht.

What comes to renting, I would not do it if it wouldn't be short-term or very affordable. Or making money out of it as a business.

Depending what you two agree but lease is valid only maximum 2 years without validating it in the court/land office.

Does anyone know the maximum for commercial premises, i was told 3 years for commercial and anything after that has to be registered at the land registry.

[CTO]

Wife rented a restaurant, we offered to pay the first years rent for a discount, she got more than 35% discount, so was worthwhile for us, and the owner got a chunk of change they could do something with.

[onni4me]

Does anyone know the maximum for commercial premises, i was told 3 years for commercial and anything after that has to be registered at the land registry.

As far as I understand same 2 years applies to commercial properties.

Main reason why owners normally don't want to do longer than 2 year contracts is that when registered they have to pay the rental tax on the spot. And that can be as high as 30% of the income.

So they simply make up to 2 years leases instead.

In some cases the land under the commercial buildings belongs to the government so it can not legally be rented to a third party longer than 1 or 2 year periods without consulting the government offices. It can be very big hurdle sometimes if the actual land is public property. In many cases it was meant for low income families for small businesses but times...they keep changing.

[TallGuyJohninBKK]

Even if I could, I'd NEVER pay a year's rent in advance for a residential property here -- even if it meant getting a discount.

There's just too many unpredictables here, and too many dishonest local landlords.

I would agree to a year's lease, as opposed to month to month, to negotiate for a lower monthly rate. But that's different from actually paying a full year rent in advance.

My sense is, the normal thing here for residential rentals is basically 3 months rent to move in -- sometimes structured as first, last and one month security deposit, or, at other times, first month and two months security deposit.