Renting a condo: fine for late payment?

[Jacx]

Hi

I`m about to rent a condo in Bangkok for 35000 baht per month.

I got a draft of the contract today, and a bullet there says that there will be a fine of 500 baht per day after the rent should`ve been paid.

Is this normal, and if so, isn`t this fine (500) quite high?

Thanks

Jacx

[ubonjoe]

Moved to the real estate forum.

[tonray]

Most apartments or condo rentals have a fine in the agreement if rent is not paid by the 5th of the month. Easy solution...if you cannot afford the rent...get a cheaper place.

[IMA_FARANG]

I have a "serviced apartment" (not a condo) that I rent on a 3 monthly contract.

However I am presented with a monthly bill at the end of each month for that previous month's rent.

On the contract it clearly states I am expected to pay the monthly rent within 7 days of the start of the next month for the previous month's rent.

If after that 7 days I still have not paid the previous month's bill the late payment fee is increased form 100 Baht daily to 500 Baht daily until the 14th day.

In my case ,it is all stated in the original contract rental agreement and was shown to me when I signed the 3 month contract.

II receive a monthly pension, and my monthly rent is paid well in advance of any late payment penalty fee.

Edited January 22, 2016 by IMA_FARANG

[trogers]

Not expensive. That's the cost to lock you out of the room with a security guard stationed at the door 24/7.

[steven100]

Is it expensive ? ...... only if you don't pay ...

[onetime]

You can get a 3 story townhouse for 7000 baht.

[tonray]

You can get a 3 story townhouse for 7000 baht.

Yes but not with your own private sky-walk to the cultural delights of Central World.

[KittenKong]

All the conditions in rental contracts are negotiable. If you dont like a particular condition then just cross it out on both copies.

My rental contract had no such late payment penalty term but it did have some other things that I didn't fancy, so I just changed them by hand before signing.

If the landlord/agent doesn't agree to the changes then you can always just look for another condo: there are far more empty condos here than there are potential tenants.

[dutchisaan]

Misread post, so deleted my remark

Edited January 22, 2016 by dutchisaan

[SOTIRIOS]

...the rent sounds like a ripoff too.....

...did you even shop around........

...sounds like they have a good catch in you......

....were you led around by someone in a skirt......

[Jingthing]

It sounds normal to me for there to be a fine, but more normal to have grace period, such as 5 days.

The fine amount sounds normal too.

The landlord means business. Why shouldn't he?

Edited January 22, 2016 by Jingthing

[realenglish1]

without seeing the contract but going on how much you will pay monthly You are overpaying for a lease 35,000 baht per moth should get you a palace

[trogers]

without seeing the contract but going on how much you will pay monthly You are overpaying for a lease 35,000 baht per moth should get you a palace

Nahhh...two shoeboxes size...

[peterb17]

without seeing the contract but going on how much you will pay monthly You are overpaying for a lease 35,000 baht per moth should get you a palace

It's location location location.

My rental agreement states over 5 days late 10% fee. Considering my rent is way over 35000 and the ease of bank transfers via Internet banking it's quite easy to pay on time. So I pay on time.

Up to the OP to accept the clause or not

[mjakob007]

i have seen agreements with 1500/day fine, for non payment after 5 days of grace period.

its negotiable

depends on the lease rent

also not applicable, if lease rentals are paid in time

[bazza40]

For 35000 baht a month I'd be expecting gold taps in the bathroom. And a live-in maid with all benefits. That sounds way too high, even for Bangkok.

As others have suggested, If the OP doesn't like the clause, cross it out. I'd suggest at that price there would be landlords lining up to lease him an apartment.

[Dogbreath]

If you can afford a 35,000 baht/mo condo, why are you whingeing about a measly 500 baht fine for late payment ? Pay your rent on time and it won't be a problem. Talk about high class non-problems.

[blackcab]

An apartment building that rents 20 sqm rooms to tenants who are typically Thai people who earn minimum wage charges 100b per day for late payment. That's pretty normal.

[Pattaya Lous]

SIMPLE, PAY YOUR RENT ON TIME, NO PROBLEM!

[Pattaya Lous]

SIMPLE, PAY YOUR RENT ON TIME, NO PROBLEM!

Not even moved in yet and looking for ways not to pay

[Jingthing]

If I was the OP and wanted the unit, I might ask politely to add a 5 day grace period before penalties. Don't need to explain why ... it's obvious. People are a little late sometimes for thousands of reasons. If the landlord loses a good tenant over that, he might be too much of a JERK to deal with anyway.

[lkv]

Having rented several condominiums in Bkk over the years, particularly on the last one i was sitting at the table with the agent telling her: remove this, remove that. I think it must have been about 10 amendments / clauses taken out of the contract.

No reason to be shy, it's your money. Two weeks later after I rented I was getting daily calls from agents / owners / friends of owners asking me if I am still interested on the price I wanted (and it was too late, rented already).

This was happening 3 years ago, the market's even more dead now than it was at the time.

Edited January 22, 2016 by lkv

[blackcab]

If I was the OP and wanted the unit, I might ask politely to add a 5 day grace period before penalties. Don't need to explain why ... it's obvious. People are a little late sometimes for thousands of reasons. If the landlord loses a good tenant over that, he might be too much of a JERK to deal with anyway.

The company I work for gives tenants invoices on the 26th day of the month. Tenants have until the 5th of the next month to pay. That's 10 days notice for a regular payment that tenants expect.

The timing also coincides with when the vast majority of people are paid.

Personally we don't give payment extensions; instead we levy the fine. From our perspective the fine is there to ensure prompt payment and it fits in with a sequence of events:

No payment by the 15th and the utilities are disconnected and the room is padlocked.

No payment by the 25th and the room is cleared and decorated (if needed) ready for rental one week later.

In reality over 95% of tenants pay by the 5th. Occasionally 1 tenant out of 100 gets locked out by the 15th which tends to focus their minds somewhat. A small number run without paying.

[Jingthing]

Hard core but not surprised.

[ebonykap]

You can get a 3 story townhouse for 7000 baht.

Really? Please tell me where.

[blackcab]

Hard core but not surprised.

We can't be that hardcore; our occupancy rate is excellent all year round.

Seriously though we take very good care of the building, the rooms and the business in general. We are honest with our tenants and staff snd we are very straightforward to deal with.

We give tenants proper tax invoices (with VAT displayed where appropriate) and we do not unreasonably withold deposits. Refunds are often processed the same day tenants vacate the building. If the tenant leaves the room clean and doesn't break anything they get their deposit returned. We are also realistic about wear and tear.

We never advertise room vacancies and it's not unusual for us to have 100% occupancy in apartments with over 100 rooms. Many of our tenants are referred by their friends.

Firm, yes. Hardcore? Not in my opinion.

[dutchisaan]

Man, reading this, I am happy to be my own landlord.

[Jingthing]

No by global standards that is objectively hard core.

[blackcab]

No by global standards that is objectively hard core.

I think what you mean is by your standards it's hard core. I don't think anyone in isolation can speak with authority about what happens globally.

I'm qualified and I've managed properties for over 20 years in several countries on 3 continents. I'm not qualified or experienced enough to speak about what happens globally, however the terms I outlined are completely standard for Thailand. If you go to a stationery shop and buy a pad of blank lease forms, the terms I mentioned are included.