Deposit on rental property

[MissIndy]

I'm browsing the web looking at property to rent for my move to C.M. this year.

I've noticed that some ask for just one months rent as deposit, whilst some ask for as much 3 months.

What is standard and can the deposit be negotiated? Are deposits usually refunded without hassle?

Where I currently live, it's the norm to give a months notice and not pay the final months rent as deposits are rarely returned.

Thanks for any info,

Trisha

[Oscar2]

the standard here is two months and you will be very lucky if you ever see that money again. you can not "give a month's notice" here to be applied to your deposit.

[worgeordie]

Its a 2 months security deposit,in case there is any damage,unpaid bills,at the

end of your rental term,some landlords will find ways not to return the deposit,

if your lucky,you will have your deposit returned if you have caused any damage,

so go over carefully with the landlord,about anything that may already be out of

order,and have them write on your lease,before you hand over any money.

regards worgeordie

[ukrules]

This varies greatly by area, in Hua Hin they often only request a one month deposit, in Bangkok it's almost always two months in my experience.

Three months is excessive.

[CMBob]

I've rented both condos and a townhouse here and they've always requested the two month deposit amount that others have mentioned. I've never attempted to negotiate them down on that item but I suppose anything is possible. I've had no hassle with obtaining deposits back in the past but, then again, I left the places as I found them (maybe minus a little normal wear and tear). By the way, it might be a good/protective idea to do an inspection up front and write down (and get the landlord to acknowledge) all the significant dents and scratches (and maybe take some dated photos).

[krey]

When I first started visiting a few years ago it was only a month deposit. But last couple of years it seems to be two months wherever I go especially if you use an agent. Often the agent fee is the one month out of the two while the other goes to the landlord at least that is what my rental agent friend told me, couple of them told me that.

Was also told many moved to the 2 month system as a different type of clients were often visiting the country and seems more damage to units or taking off was a bit more common. Not mentioning any one in particular.

As for not getting back the 2 months.. I have never had any problems getting my money back.. Usually we do a scan of the apartment when I rent it, what is in it, take some photos etc.. then when the period is over we rescan the apartment and things like a broken wine glass or a broken lamp etc would be taken out of the 2 month return, but I have never had anyone try to rip me off big time... only time I ever had was a lady wanted to charge me 3000 baht to fix a sliding door hinge but I got the maintenance guy to do it for 150 baht which she agreed to though not very happy about it:)

I have also had success asking to stay only 6 months with the option to renew. as one year is a long time for me as I like to travel other areas

sometimes they will drop it to one month then, but usually still ask for the two. Always hate that initial payment when renting a new place:)

Edited February 24, 2016 by krey

[shirtless]

The deposit is seldom returned , try and pay as little as possible also check electricity price

[Dante99]

2 Months. Deposits are often returned as stated above. If you assume the worst and approach your landlord all macho azzhole they will give you the response you expect, afterall they would not want to dissapoint you.

[LivinLOS]

the standard here is two months and you will be very lucky if you ever see that money again. you can not "give a month's notice" here to be applied to your deposit.

I have never lost a deposit in 14 years here..

I have, when I felt I was going to be screwed, taken the initive, made the landlord come visit and inspect, and when they said all was fine said to use my deposit against rent.. Yes its underhanded, but sometimes you have to protect yourself. I think I have done that twice in 7 or so properties and both times was farang not Thai landlords. My Thai landlords were all straight to me.

If I was breaking a tenancy I would expect to lose my deposit for breaking contract, in that case I wouldnt use my deposit against anything.. fairs fair, I should pay.

[naboo]

4 houses rented, two returned with no problem, one we defaulted by breaking the lease and the other, with a half Thai/half Farang landlord we fought over as he said it was to be used to replace the kitchen after the 2011 flood. We stopped paying rent and left when all was square.

[NancyL]

It pays to check out the reputation of the landlord with regard to returning of deposits prior to renting. With one we had no problem. The other insisted on keeping 1000 baht to repaint the place, but didn't tell us about that until we came back the day after we moved out to settle up with him and he already had his employee in the middle of repainting -- using the cheapest paint possible. Argument was that we'd put nails in the wall to hang pictures -- but that with with his permission and with that same employee doing the work and we always tipped the guy 100 baht for coming around to pound in a few nails.

If we'd known this was going to be an issue, I think we could have made a side deal with the employee (a handyman guy that took care of the landlords units around town) to paint the place for 500 baht. That's probably more than his boss was going to pay him for doing the job.

[jerojero]

No real standard. Know Thai friend that paid 2 months for 6000/mo rent apartment.

[baywatch82]

I am Landlord myself and I can not imagine to not refund the deposit.

It is part of the contract with clear statements when it is refunded or when is not.

To be honest, I am more scared to piss off my tenants, as some furniture are more valuable than 2 months deposit they gave me.

One tenant, had 12 months contract, but he broke it after 6. He was insisting to have all deposit back and threatening me with his thai connections. Finally we have settled to give him half (1 month) deposit back.

Just good TV or good refrigerator is more valuable than 2 months deposit. They can just leave with it one day and never come back and I am the one who lost.

[slipperylobster]

For owners who rent directly (especially stand alone homes), the rent and deposit is totally negotiable. I never had any problems whatsoever, negotiating the deposit. One month is minimum...and you can get away with that, as long as you modify the lease agreement. I pay six months in advance, and get great deals. We even have negotiated using the deposit as the last month's rent. This was in SanSai.....Nakorn Ping, City Home....just 1 kilometer north of Sausage King. I know there were six homes for rent for less than 6 or 7 thousand.

When you work with third party management/brokers...you will probably be subsidizing their salaries with large..2 months deposits and higher rents. Try to work with the owner. Condos are probably more difficult to negotiate rents.....

[MissIndy]

Thank you everyone for your comments. I'll bear them all in mind when I start looking at houses.

Trisha

Edited February 24, 2016 by MissIndy

[fey]

the standard here is two months and you will be very lucky if you ever see that money again. you can not "give a month's notice" here to be applied to your deposit.

would have to disagree. if you get a receipt i have not been shafted for a deposit yet.

it's all negotiable, 3 months is too much. would suggest paying the first month then one month deposit. anything more is getting too risky.

[thairay]

If a renter told me he was going to apply my deposit as the last months rent i would throw him out before the month was done.if they asked and i agreed we would be ok. non payment of rent as agreed is enough for you to be out.

[Thailand]

Depends on the term of the lease, 2 months deposit plus first month rental in advance for one year, more if a longer term lease because you know that the lease is likely to be broken.

Usually a broken lease also means crappy tenants and your property will likely need a good clean and damages repaired.

Depends on perspective really, tenant or landlord.

[mascarabertha]

first month--last month--months security is the way my rentals work for long term rentals

[slipperylobster]

If a renter told me he was going to apply my deposit as the last months rent i would throw him out before the month was done.if they asked and i agreed we would be ok. non payment of rent as agreed is enough for you to be out.

Quite different here in Thailand. Seldom does a contract go to court. What really matters is what the tenant and owner agree on, before he moves in. There are Thai Owners here that have indeed accepted a rent agreement with no deposit at all...or use a deposit for the last months rent.

I am not recommending anyone use the deposit as last month's rent...unless it was agreed upon in the contract.

Bottom line...pay six month's advance, and have the owner reduce the rent, or pay a year advance and get a month free (as an incentive for the large advance). alternatively, drop the requirement for the deposit. It is the wise thing to do.

It's Thailand....flexible. Thai's are hard pressed to find a good tenant who can pay in advance. Tourists areas are not as flexible as the lesser known areas.

Edited February 25, 2016 by slipperylobster

[MadMac]

Been living in Singapore for 9 years, was the same story there, always got it back.

Now we rent out in Bangkok ourselves (2 months deposit ) and usually give back the money minus open positions (electricity, water, TV, internet) if there are no real issues. One time not with a dirty couple of (western) teachers, that left the house in a total mess after running from someone. No idea what really happened, but these 2 months of deposit did not cover the cost.

[eaglesflight]

If a renter told me he was going to apply my deposit as the last months rent i would throw him out before the month was done.if they asked and i agreed we would be ok. non payment of rent as agreed is enough for you to be out.

Quite different here in Thailand. Seldom does a contract go to court. What really matters is what the tenant and owner agree on, before he moves in. There are Thai Owners here that have indeed accepted a rent agreement with no deposit at all...or use a deposit for the last months rent.

I am not recommending anyone use the deposit as last month's rent...unless it was agreed upon in the contract.

Bottom line...pay six month's advance, and have the owner reduce the rent, or pay a year advance and get a month free (as an incentive for the large advance). alternatively, drop the requirement for the deposit. It is the wise thing to do.

It's Thailand....flexible. Thai's are hard pressed to find a good tenant who can pay in advance. Tourists areas are not as flexible as the lesser known areas.

Not a practical approach in the UK either. By the time they've gone through the process of giving you notice etcetera, it's time to leave anyway. I rented one place in England where black mould on the walls spread to my wardrobe and ruined some of my clothes. After the landlord insinuated it was my fault for not moving the wardrobe away from the walls, I decided he wasn't the sort of person I could trust to return my deposit so I didn't pay the last month's rent. They can huff and puff but, in the UK at least, there's very little they can do about it (or that was at least the case when I lived there).

In Chiang Mai, we paid 2 months deposit when we rented a house, and got it all back when we moved out. This was despite the fact my little girl had poked a hole in the mosquito screen by the front door, so I was pleasantly surprised (I even pointed out the mosquito screen damage to the landlord).

[MissIndy]

It seems like anywhere else in the world - there are good and bad landlords, and good and bad tenants.

I suppose you just have to be decent with people and hope they behave the same.

I would prefer to pay just one month rent as a deposit, and wouldn't consider paying 6/12 months in advance - you never know what's going to crop up, especially when new to an area.

Looking forward to getting on with it now.....

Trisha

[MadMac]

@Trisha

You could try to ask for an extended rental length. So let's say 1 year instead of just a half. Landlord will probably be happy to give it to you for 1 month deposit, but if you move out early, it will be gone in any case. If not, try another one. It's a renters market in the moment in Thailand, so you have some weight to bargain.

[cmth]

As far as getting back deposits, my experience has been that when dealing with an individual the chance of getting your deposit back drops considerably. I have had the same experiences with motorbikes and cars as well. Every time I have dealt with an individual, I have either received nothing or a reduced amount back. In one case it took going to the police station just to get anything back. The only reason I think I received anything back is because I kept the car inside the gate and the owner and their friends were to scared to come on the property. When dealing with a company or agent, I have had no problems getting my deposit back. Like in any country in the world, there are good and bad people but companies usually want keep their reputation intact. YMMV

[new2cm1]

I have just gone through the same process with perfect homes. professional and provided all of the information that I needed to go forward.