What value in a rental contract?

[Thailand]

For the second time in 3 years we have had "tenants" break the rental agreement.

3 years ago 2 year contract, 2 months deposit, broke contract after 11 months, did not give required notice, did not pay last 2 months rent saying that deposit would cover it!

Selling in the current market is not worth considering. Last year,reluctantly agreed to a 5 year contract. Advised the British tenants to be that we had just been ripped off by our previous tenants and did not want similar hassle.

Oh no, not from us, we don't want to be moving furniture etc for at least 5 years, very happy to make the commitment. We made commitments based on that agreement.

10 months later,in to the 5 year contract, on receiving the rental at the beginning of Feb the tenant oh sorry we are moving out at the end of the month, yes we know we will loose the deposit, and then gave some cock eyed excuse which within 1 day we had found to be bullshit.

Basically just a rant, no doubt we will get done again assuming we are able to get another tenant.

[Ghostnigel]

My advice would be, to get get out of the rental business, it seems like its not for you....but i think you already know that.

[KittenKong]

This is a double-edged sword. Many tenants here will have had experiences of bad treatment by landlords and agents (repairs not done, deposits not returned, other scams), just as many landlords will have been victims of various scams/deceit/bad conduct by tenants and agents also.

On both sides of the fence Thailand has no shortage of selfish scamming people (of all skin colours) with no respect for others, and it is self-replicating. The lack of properly applied law means that the only answer is to take care of yourself, so this is what people do and who can blame them? Personally I do not want to be involved in business in a place where people have this sort of attitude, so all my business/financial interests are elsewhere.

[Thailand]

My advice would be, to get get out of the rental business, it seems like its not for you....but i think you already know that.

I am not in the rental business, we simply have a house that we cannot sell so have rented it to provide income as opposed to capital from a sale.

We have simply found tenants who turned out to be aholes!

[smutcakes]

I would be wary of anyone signing a five year lease on a house. Where is the house?

If they want a long lease, make the pony up 3-5 months deposit.

[Thailand]

I would be wary of anyone signing a five year lease on a house. Where is the house?

If they want a long lease, make the pony up 3-5 months deposit.

Chiang Mai

Hindsight

[bazza40]

As a renter, I don't think a 5 year lease is practical. The OP would probably be better off renting on a 6 month or one year basis. I can't think of too many tenants who want to tie themselves down for 2-5 years, although having said that I've now been renting with the same landlord for seven years. Situation a bit different - no contract, no security deposit, pay three months in advance, mutual trust.

Possibly the OP should also look at other factors - obnoxious neighbours, excessive noise, or the rent is higher than market value.

What is the property description, and what is the monthly rent?

Edited February 5, 2016 by bazza40

[kbelyeu]

I recently broke my first ever contract because the property was <deleted>.. unfortunately you don't notice all the little things that annoy you until after you have lived in the property for a while. I was honest with the rental agent but I doubt she was with the owner.. your property isn't on Soi Photisan is it?

Kurt

[davidst01]

you sound like an amateur. Ive never heard of a landlord making a tenant sign a 5 yr lease. very stupid. Obvious solution is to have tenants sign a shorter 6 month lease with continuation clause.

[Ulic]

I understand your frustration but be happy you got a 1 year rental and you get your rental

property back in the same condition as when tenants moved in. Lots of reasons to change

locations. Bad neighbours, noise, better deal somewhere else. A landlord does not want a

tenant who does not want to be there, believe me. A 5 year lease is only worth the paper

it is written on if the tenant pays 2 years upfront and the balance paid out over the full

5 years front weighting the cost. Of course for this type of arrangement you would have to

give a substantial discount from a month to month one year lease. the joys of being a

landlord, finding good tenants. Best of luck.

[Tracyb]

I once rented a condo with a one year lease for what I thought was a guaranteed rent amount. Eight months in the landlord gave me a 30 day notice of a 20% rent hike. When I refused to accept the rent increase and gave 30 days notice to vacate he went ballistic accusing me of breaking my lease. What the.....? He broke the lease when he raised the rent!!

So, you see, there are LANDLORDS who are full of bulls**it, too!

[Gsxrnz]

OP - the first one shouldn't have got away by not paying the last 2 months rent in lieu of bond. Your fault for not collecting it.

Unless you are pricing the contract to reflect the long tenure of the lease, i.e discounting say a 6 month price by xx% to attract a long term tenant, then it's really just an inconvenience for you if they quit early - just make sure you score the 2 months bond.

If you ARE pricing to reflect the long term aspect, then I suggest you either cease and desist from doing so, or increase the bond to 3 or 4 months. This may well discourage them from quitting, and if they do you score bigger compensation.

Yeah, yeah.....nobody will cough up 4 months rent at one time. But you can amortise the extra two months of the bond into say the first four months rent.

i.e agreed monthly rent 20,000

Cash Bond paid on occupancy 2 x 20,000

First 4 months rental payments = 20,000 as agreed, plus pro rata the additional 2 months bond being 40,000/4 = 10,000.

So for the first three months, They pay you 30,000 fro the first three months, then revert to 20,000 per month.

You then have four months bond to retain if they quit.

[ggt]

Technically, it is a necessary evil in the rental business...Actually, it is predicated on the honor and integrity of both parties...get the picture...

[chilli42]

It's very simple. Your contract should be last months rent and two month security deposit so you collect 3 months. If someone pulls the trick you first tenant did you change the locks and cut off electric and water and keep the three months sitting with you in deposit. If the contract is broken there is nothing you can do legally but the contract then protects you if they try and sue. If you find the approach a bit aggressive I suppose it is. Though even the threat of these actions gets full attention and compliance and those who call my bluff quickly relent. Forget what people tell you about what is legal in Thailand ... breaking contracts is as well. Things work best here when you act and ask for forgiveness later. If you are not prepared to be an as$≤ then don't be a landlord.

[questionsreplies]

Contracts are worth nothing for such dmall money...

[blackcab]

A 5 year lease? Are you aware that any lease over 3 years must be registered on the chanote and that a 1.1% fee is payable based on the total rental amount over the entire duration of the lease?

20k a month rent for 5 years works out at 13.2k fee to pay at the Land Office.

Or do a 3+2 and pay nothing.

[smutcakes]

A 5 year lease? Are you aware that any lease over 3 years must be registered on the chanote and that a 1.1% fee is payable based on the total rental amount over the entire duration of the lease?

20k a month rent for 5 years works out at 13.2k fee to pay at the Land Office.

Or do a 3+2 and pay nothing.

Whilst you are correct re the lease registration and fee payable, i would doubt any private individuals renting a house etc would do that.

If you are speaking of doing things strictly by the law, it is actually illegal for any foreigner to rent out their condominium under the FBA, so technically speaking anyone renting out their unit is breaking the law.

[blackcab]

A 5 year lease? Are you aware that any lease over 3 years must be registered on the chanote and that a 1.1% fee is payable based on the total rental amount over the entire duration of the lease?

20k a month rent for 5 years works out at 13.2k fee to pay at the Land Office.

Or do a 3+2 and pay nothing.

Whilst you are correct re the lease registration and fee payable, i would doubt any private individuals renting a house etc would do that.

If you are speaking of doing things strictly by the law, it is actually illegal for any foreigner to rent out their condominium under the FBA, so technically speaking anyone renting out their unit is breaking the law.

I agree that almost nobody is going to register a 5 year residential lease. But by not doing so the lease itself becomes less enforceable. Rather than being a five year contract made under the hire of property law, if the contract was not registered it would be enforceable as a 3 year lease made under the hire of property law plus a 2 year contract enforceable as an agreement between two parties.

I mention this as the title of the thread makes a reference to the value of a rental contract.

[Thailand]

you sound like an amateur. Ive never heard of a landlord making a tenant sign a 5 yr lease. very stupid. Obvious solution is to have tenants sign a shorter 6 month lease with continuation clause.

An amateur what?Stupid, you are obviously a highly professional renter of property!

The tenant took a 1 year lease and on taking possesion requested a 5 year lease! Then 10 months down the road broke the lease.

As per the title of the thread, in general rental contracts in Thailand are a waste of paper.

Again, it's a rant against the <deleted> who have rented our property in the past. I have friends and colleagues who have been lucky with tenants, we are not, simple as that.

[Thailand]

As a renter, I don't think a 5 year lease is practical. The OP would probably be better off renting on a 6 month or one year basis. I can't think of too many tenants who want to tie themselves down for 2-5 years, although having said that I've now been renting with the same landlord for seven years. Situation a bit different - no contract, no security deposit, pay three months in advance, mutual trust.

Possibly the OP should also look at other factors - obnoxious neighbours, excessive noise, or the rent is higher than market value.

What is the property description, and what is the monthly rent?

7 bedroom riverside mansion,large swimming pool, tennis court,and bowling alley, 150,000baht per month.

[blackcab]

you sound like an amateur. Ive never heard of a landlord making a tenant sign a 5 yr lease. very stupid. Obvious solution is to have tenants sign a shorter 6 month lease with continuation clause.

An amateur what?Stupid, you are obviously a highly professional renter of property!

The tenant took a 1 year lease and on taking possesion requested a 5 year lease! Then 10 months down the road broke the lease.

As per the title of the thread, in general rental contracts in Thailand are a waste of paper.

Again, it's a rant against the <deleted> who have rented our property in the past. I have friends and colleagues who have been lucky with tenants, we are not, simple as that.

It's actually more profitable to have tenants break their contracts and lose their deposits (assuming you can find new tenants with ease).

However, to make the money you need to actually lock out tenants who default on a very timely basis and then install new tenants rapidly.

That's very easy for a 2,500 baht a month room but not so easy for large family properties.

[salavan]

its really very easy to be a landlord in thailand try renting in the uk its a b+++dy night mare

just take 2 months rent up front as a deposit and let them move out when they want, then re let to someone else

[chicowoodduck]

I'm always gun shy when do the deposit thing....almost every spot I've been they come up with some lame excuse not to give it back or at least a portion of it......