Paying rent 5 years in advance.

[thhMan]

Amazing the stupidity this world has....

No further comment ----

[Cent]

1 or 2 year lease. Pay as you go monthly. Get the water and electric under your name and pay it yourself. I personally would not pre-pay at all. Life changes, things happen. Don't lock yourself into something that could lose you a large amount of cash with little to no recourse on getting it back if things go blooey..

[mike324]

If they want to give you a discount usually 5 year or 2 year don't make much of a difference. They would have already offer the lowest price they are willing to go for 2 years. But I can be wrong as its case by base, but never pay 5 years in advance. If its a decent place, they will just offer a couple thousand baht discount, definitely not half off the rent.

Your plans can change in 5 years too, so too much risk to pay all at once.

[carmine]

Someones actually thinking about paying five years upfront?!!!!!!!!!!!!!! oh my Lord........

[bazza40]

No No No. Apart from any other considerations, if your plumbing or electricity breaks down, and your landlord won't do anything to fix it, your money has gone down the toilet.

I pay 3 months in advance, occasionally 6 months if I'm not sure I'll be in Thailand when the next quarter falls due. However, that's after 6 years of building mutual trust in each other's integrity.

You've never leased a property in Thailand before? You hardly know the guy? If you do this, you're just another falang sucker waiting to be relieved of his money.

[billphillips]

I just need to fully understand that you are seriously considering paying out around ฿1.5 million in this wonderful land that is a scammers paradise.

Do not, under any circumstances, pay more than 3 months rent in advance. If something goes wrong, and it probably will, you need to limit your potential loss to the monies already paid out. By paying a considerable sum in advance you will be attracting all of the wrong attentions, actually inviting the onset of a very bad future for yourself.

When (not if) it goes wrong, Forget about calling the police for help. Forget about finding an honest lawyer. Forget anything that resembles fairness in the western world.

Remember that you have no rights here, or at least not any that you can call upon. The only way to safeguard your money and sanity is to keep a close reign on your cash. The owners may chose not to dispose of you, as long as they have the prospect of ongoing quarterly payments, for at least the foreseeable future. Once you pay a large amount in advance, you become an obstacle in the way of their future cash collection prospects. Their is a high possibility that you will be removed in any way necessary, up to and including the ultimate removal technique favoured locally. And that's assuming the whole rental thing is not an outright scam in the first place.

Do you think that I'm exaggerating?

[deepcell]

Do not do such a thing! Are you mad?

[swissman53]

What are you doing if a Karaoke opens next house or you get some noise neighbors ????

[ableguy]

What if the house is not paid for and the bank takes the house back, you are out on your butt, you could be being set up.

Walk away.

[NoshowJones]

Would be a very foolish thing to do. What recourse would you have if the owner decides to sell and you are evicted. That money will not be "held" in trust.........

Very interesting point you raised, but what does a person who lease a resort/ hotel for 30 years do as they must pay a large amount in advance, can the owner simply sell the property and take the money from that person? surely there are laws to protect such a thing?

There are plenty of laws in Thailand, but getting them enforced is another thing.

[snooker4eva]

One simple word of advice; DON'T!!!!!

[carmine]

Once they have the money they will do the square route of <deleted> all for you. Its difficult enough in most cases to get assistance even if you rent is unpaid which is why anyone who finds a decent landlord is hard pushed to move.

It just compliments the lousy standard of service and the "i'm alright jack"attitude that prevails here.

[manarak]

OP: such a deal should only be made if the lease is recorded at the land office.

[maidee]

unless you have a crystal ball, would be foolish even to pay one year in advance

[Phaeton]

I was just thinking to myself (I rent out my own house out) what would I accept if I usually got 30,000 rent for it (half that in my case)....so to answer your question....I think about between 20 and 22,000.....20.000 I suppose, I don't think I'd refuse that if getting 5 years in advance, taking into account the time it would normally be unoccupied between customers etc., in the period of 5 years

So a substantial discount is possible. To 20K or even less.

Interesting to think about whether there is a way to make this work for both parties. Could you pay one year in advance, and then pay monthly toward the second year. So that your landlord had an interest in keeping you happy/not dead? He would not be getting that huge lump sum payment, but he would know a year in advance if you stopped paying etc.

[circusman]

When you rent, there will be a contract to sign. This contract is legally binding if something happens. Most property owners are honest and there won't usually be any problems.

Usually the owners will live at a house on the same property or nearby, so you can be assured that they won't all of a sudden move anywhere. In fact, the property owners are probably more worried that you will be the one suddenly moving out.

The pros of paying in advanced is that you may be able to negotiate a great discount. You will also be secured that the owners won't suddenly increase the rent after a year or two once they've seen you've settled in.

Warning. Pay nothing in advance !

[pbonline]

Pay 5 years rent in advance!

Seems to be no limit how stupid people can be..

[MockingJay]

Please send the 1.8m to my bank account and I'll give you the answer

[SOTIRIOS]

....are you joking....???

...negotiate the rent.......if to your liking ........sign for an extended lease....

.....pay 2-3 months deposit...

...if not.......move on..........

....are you setting yourself up...........or are you setting us up here......

..

[Scouse123]

The times I have heard the expression, " My landlord is a great guy " ...........................until they're not!

A fouvourite of the Thais is to blame another elder/family member for changing and/or backing out on deals and contracts. The younger Thais do not possess a tenth of the honour their parents had.

I would pay no more than 1 year upfront and expect a ten/fifteen percent discount.

If they are chasing money, they will be around to renegoiate the discount on the lease to get another lump of cash before the term is up.

Make sure all contracts are done through an English speaking reputable lawyer and any extended terms are registered at the land office.

Evil can enter their minds if they fall on hard times and have already had five years rent upfront from you, especially if this land is their only/main asset or other family members are involved with it.

Edited June 5, 2015 by Scouse123

[Henderson]

WOW, thank you all for your comments, they have opened my eyes.

I didn't really thought about the fact that once the house owner got my money in full, I am no longer "needed" and he can kick me out and get another tenant to pay again, or even worse, have me "mysteriously disappeared" as people have been disposed of for less than 1.2-1.5 mil ... reading that so many people claim that the law is not a law at all and all is dependable upon the feeling of the owner, that's just insane but that's how it is.

Serious problems with the house for sure won't be fixed, why should they, no gain for the owner its not a condition set for paying the next rent..lol... I think i'm kinda getting the idea on how to think properly in Phangan.

I am very disappointed that I can't go ahead with doing something which would have been a very good thing for both the owner & myself but this is not the US/Europe/AUS.. TIT.

[grumbleweed]

Aside from the already mentioned possibilty of a scam, I'd be very worried about my life expectancy if I were you

[50baht]

.......

[Liquorice]

One of my farang neighbours rented his house 11 months ago.

The Thai landlord insisted on a 2 year contract..........no problem.

During the last 11 months though, a leak developed in the bathroom wall, the toilet broke, then the water pump packed in.

Short of getting nowhere with requests to the landlord to carry out the repairs, my neighbour paid for the repairs himself.

Last week the landlord announced they were putting the rent up from 5,000 to 7,500. A 50% increase.

My neighbour reminded him they have a 2 year contract and taught him a new English word that began with F and ended in f.

Good idea to pay 5 years in advance.......no, no, no.

[Monkeyrobot]

Just try one year first see how you go , five years is a long time anything can happen,.

[stephenterry]

Basically, even if the landlord appears trustworthy, you have little rights, if any, that are enforceable, even if you're legally covered. If you're considering (and have the necessary readies) paying 5 years in advance, DON'T, put a chunk in the Government Savings Bank bonds, and pay as you go. One or two year rental contract, with a maximum of 2-3 months 'deposit', which although theoretically returnable if you don't trash the place, is many times not refunded. Landlords might negotiate, but their discount offers are never substantial, however long the contract is for. Don't forget to establish what extras you need to pay for and how much the electric, water, garbage etc. is. Other than that you will fund any 'enhancements' like air-cons and possible repairs, because the landlord is more likely to shrug and say 'up to you'. I know several ex-pats who have lived happily and in harmony with their landlords and locals, so it's not all doom and gloom UNLESS MONEY IS INVOLVED.

The 3 year Bank bonds are attractive because they can be accessed at any time, and every 16th of each month there is a lucky draw that could net you 10m baht max, as well as many smaller prizes. Worth considering.

[Shiver]

I would say don't do it. I know of more than one example where the contract technically should protect the person renting but a change of ownership meant they were dealing with different people, with an attitude of "what are you going to do about it? You didn't pay the advanced money to me, but to someone else" type language. You can always find another place, but you can't get your money back.

I have lived in the same place for 8+ years without a rent increase (I may have just jinxed myself there). I'm sure that the only reason for that is that they know I pay on time every time and it's better than an empty unrented place. I've also improved the place, and am quite happy to leave all fixtures and fittings when the 'event' occurs that a lot of foreigners will be heading for the nearest border within the hour, and we don't know which day that will be.

I should also say that I refused to sign the lease agreement which was in Thai, on the grounds that I couldn't understand it (I did have someone translate it for me and I didn't really like it, but I didn't mention that). They let it slide rather than make issues, and I've been a model tenant.

Edited June 5, 2015 by Shiver

[fxe1200]

When you rent, there will be a contract to sign. This contract is legally binding if something happens. Most property owners are honest and there won't usually be any problems.

Usually the owners will live at a house on the same property or nearby, so you can be assured that they won't all of a sudden move anywhere. In fact, the property owners are probably more worried that you will be the one suddenly moving out.

The pros of paying in advanced is that you may be able to negotiate a great discount. You will also be secured that the owners won't suddenly increase the rent after a year or two once they've seen you've settled in.

Do not forget the duty stamps on your contract!

[Laisze]

Due to the KPG locals' nature (greed, ignorance, general criminal demeanor), money will stress-test the strongest of (real or perceived) friendships in KPG.

This is my personal experience when dealing with the local mentality:

$ + trust + KPG local = 5% chance of a decent outcome (being somewhat generous).

Actually, forget the $. Any interaction between KPG expats and the one-dimensional locals, will probably lead to a less than 20% chance for an ideal outcome.

Here's the formula for long-term expat success in KPG:

Zero (or minimal) interaction with locals + thick skin + minimal outward display of wealth = paradise (or what's left of it).

[wowfactor10]

For that amount you should be able to buy it....So buy it then..

Upfront rent 5 years payment its suicide...