Residential leasing now considered a contract controlled business for landlords with 5 or more properties
Landlords with five or more residential properties will now fall under the Consumer Protection Bureau’s definition of a contract controlled business. The Contract Committee issued the“Notification of the Contract Committee Re: The Stipulation of Residential Property Leasing as a Contract-Controlled Business B.E. 2561 (2018)” and it was published in the Government Gazette on February 16, 2018. The new regulations will take effect on May 1, 2018.
The regulation defines a residential property leasing business as a business that leases five or more residential units to individuals. Those units, which are for residential use only, can be condominiums, houses, apartments and other residential property, hotels and dormitories are excluded as they are covered under separate regulations.
Key points of the regulation are that this applies to landlords with five properties or more, landlords are prevented from charging more for basic utilities than they cost, they can ask for only month rent in advance and the cost of one month rent for the security deposit. Many properties currently ask for two months for the security and one month advance rent.
Landlords are not allowed to charge for normal wear and tear usage, and must return the deposit within seven days after inspection. They are not allowed to inspect without advance written notice. The lessee is now allowed to give 30 days advance written notice of termination of the contract and is no longer required to fufill the contract fully.
Although the lease contract must be in Thai we recommend that you have it translated into English as well, Sunbelt Asia has a top notch team that can review your contract and translate it into English for you.
The new regulations stipulate that residential lease agreements must have a Thai language version and they must include:
The landlord must include the following in the lease contract and must follow certain actions. It is important to note that if the contract does not include these terms, under Section 35 of the Consumer Protection Act, the lease agreement will be interpreted as to include them.
The new regulations also set out terms that residential lease agreements cannot contain:
Before signing any contract be sure to have one of Sunbelt Asia’s experts review it for you to ensure it fully complies with the current laws.
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