Cost of electricity in rental unit

[EvenSteven]

What exactly do the Thais mean when they say x number of baht per unit for electricity?  Is this a flat rate per month for the unit/apartment/condo or is it based on usage?  And if it is based on usage, is it based on kilowatts per hour?

[Crossy]

A "unit" is one kilowatt-hour.

 

So yes, it's based upon usage.

 

Government rate is about 4.2 Baht per unit / kWhr.

 

 

[Deepinthailand]

You may find condo electric I'd more expensive than goverment rates. Landlords usualy add a bit to it. When you go to tent always ask what the rate per unit is.

[KittenKong]

In some condo buildings you will actually pay the official government business rate which is much higher, due to the individual condos not having their own official meter. This is also normally the case in serviced apartments.

 

But if you are renting a normal condo with its own meter you should insist on paying the electricity bill yourself at the official rate of just over 4B/kWh as mentioned. If the landlord or agent just presents you with an unofficial bill you can be pretty sure that they have added something to it. The scams never stop here.

 

[BuckBee]

Condos with meter as said are a little over 4bt a unit, I never had a condo without own meter ...

Apartments can be 7bt plus a unit and have minimal fee per month of like 200bt for electrical and same for water, most apartments have fees in easy read documentation and generally honest and consistent in charges before signing contract so no hassle, prefer apartments myself as more for money if really look around plus rolling contract after 6months is dead easy as is checking out, deposit also minimal ...

[The Fat Controller]

My wife has rooms for rent in Ubon, we are upfront with our tenants and they know the charges for electricity and water when they sign an agreement with us.

The electricity rate is above the rate we are charged, but there seems to be an agreement amongst the local building owners that 8 baht per kWh is the going rate and everyone in the locality charges the same !

We obviously make a profit, but they get decent public space lighting, CCTV, pumped water and internet, nobody complains that we are charging too much.

[JackThompson]

Unlike many countries, landlords in Thailand (and Cambodia) are permitted to charge their tenants more for electricity than it costs them.  They offer a cheaper-seeming "rental" rate, to make the place look inexpensive, then stick you with double (or more) cost electricity, which is particularly harsh if you like air-conditioning.  This is one reason I moved into a condo, where I do pay a bit more in "rent" than the cheapest rooms.  When I got my first electric-bill in a condo, I almost jumped for joy.

 

If you cannot rent a condo, add 300-600 baht to your estimated rent for every baht/unit (kwh) over 5-baht, which the land-lord says you must pay them.  The variance depends on how cool you like it, how tightly-sealed the doors and windows are, and if you have any walls / windows that get much full-sun.  With a lot of sun, you may find you are running an air-con inside a brick-oven.

 

Note to landlords - I realize "everyone is doing it" and so your rental-rates would seem "very high" if you did not join in the game.  My beef is with the rules, not the players.

Edited October 11, 2016 by JackThompson

[KittenKong]

1 hour ago, JackThompson said:

Unlike many countries, landlords in Thailand (and Cambodia) are permitted to charge their tenants more for electricity than it costs them.

 

They are permitted to ask for it. Up to the tenant if he cares to pay it or not. I just said "if you want me to rent your condo then I'll be paying the electric bill myself at the official rate". No shortage of unrented units here.

[EvenSteven]

On 10/10/2016 at 8:47 AM, The Fat Controller said:

My wife has rooms for rent in Ubon, we are upfront with our tenants and they know the charges for electricity and water when they sign an agreement with us.

I would hope that you are upfront.

 

On 10/10/2016 at 8:47 AM, The Fat Controller said:

The electricity rate is above the rate we are charged, but there seems to be an agreement amongst the local building owners that 8 baht per kWh is the going rate and everyone in the locality charges the same !

Therefore it must be right?  Btw, I've seen lower rates.

 

On 10/10/2016 at 8:47 AM, The Fat Controller said:

We obviously make a profit, but they get decent public space lighting, CCTV, pumped water and internet, nobody complains that we are charging too much.

No doubt you make a profit.  Wouldn't it be upfront of you to separate the costs of each and charge accordingly rather than bundle them together so the bill can be padded?  And if nobody complains, then ignorance is bliss?

[The Fat Controller]

We are totally upfront about the electric and water charges. The meters for both are accessible at all times for our renters and we get them to agree readings when they arrive and leave.

 

Half our rooms have aircon and we are very proactive with new tenants in these rooms, as electricity bills can get very high very quickly, we keep a close eye on their usage and give them a nudge to say how much they are using.

 

Separating the communal charges is just not the way it is done here.

 

Our renters know exactly what they are getting and all sign an agreement.

 

As we live onsite, all the small issues are dealt with as quickly as possible.

 

I can honestly say that in the last 2 years we have not had anybody leave because they are unhappy with what we provide, however 3 tenants have been "invited to leave" due to behaviour that we deem unacceptable and they know it !

 

 

[Eddiesam]

17 hours ago, KittenKong said:

 

They are permitted to ask for it. Up to the tenant if he cares to pay it or not. I just said "if you want me to rent your condo then I'll be paying the electric bill myself at the official rate". No shortage of unrented units here.

I agree.

The rate is 3 baht /Kw residential and 5 Baht industrial or commercial. I believe. 

[The Fat Controller]

Apartment building : 3.9086/unit

 

Service charge 312.24/month

 

House : 3.2484/unit for first 150 units, thereafter 4.2218/unit

 

Service charge 38.22/month

 

Both then get a reduction of 0.3329/unit, this is described as "Ft" and has been this since July, previously it was 0.0480, not sure exactly what it is.

 

VAT is then calculated (7%) on the reduced amount.

 

All figures from our PEA bills dated 18 Sep 2016, we are in Ubon Ratchathani.

Edited October 12, 2016 by The Fat Controller
Added Info

[JackThompson]

19 hours ago, KittenKong said:

 

They are permitted to ask for it. Up to the tenant if he cares to pay it or not. I just said "if you want me to rent your condo then I'll be paying the electric bill myself at the official rate". No shortage of unrented units here.

 

Exactly why I now rent condos instead of apartments.  The cost works out the same (less in the hot months) plus a 20th floor view of the ocean and islands, an ambient-temperature far below any apartment I tried, great security, etc.

 

The only reason I can imagine a person would rent an apartment is to get a "super cheap fan-room," or if they are here so briefly that a longer lease is not feasible. 

 

Do "shop around" for your condo-rental, though.  I pay around 1/2 what some others do, for the exact same unit/layout, in the last two where I have stayed.  Some on the market I visited are 1/2 the sq meters, no view, tiny little balcony-area, no kitchen, and double my cost.  It is people finding those raw-deals who end up in apartments, I suspect.

 

Oh, and best reason of all - no barking dog noise.  Fragmented sleep makes for unhappy campers and overall bad health.

Edited October 12, 2016 by JackThompson

[blackcab]

To put it into perspective, the apartment buildings the company I work for owns make approximately 15% cash profit on electricity plus the common areas paid for.

 

We charge tenants 8 baht per unit, but as we are VAT registered we have to give the revenue department 0.52 baht per unit, leaving us with 7.48 baht.

 

As a company we will absorb the rising costs of electricity supplies  (about 5% a year I believe) until close to the break even point - at which time other apartment owners will probably be charging more for electricity anyway.