Thai lease red flags: 10 clauses to check before you sign

First, the rules that apply

• Civil and Commercial Code, Section 538: a lease of immovable property needs written evidence. A lease of more than three years must be registered with the Land Office, or it can only be enforced for three years.
• Section 540: a lease can’t run longer than 30 years. The Supreme Court (Decision 4655/2566) held that a pre-agreed “30 + 30 + 30” renewal was void, so be wary of long-lease marketing.
• Consumer Protection Board notification B.E. 2562 (2019): covers landlords who rent out five or more units (most apartment buildings and many agencies). It sets required and prohibited terms, summarised below. A private owner renting one condo isn’t covered, but the rules are still a good benchmark of what’s fair.

The 10 red flags

1. The whole deposit is forfeited if you leave early

   Common, and costly. A clause like “ผู้ให้เช่ามีสิทธิ์ริบเงินประกันทั้งหมด” (“the landlord may keep the entire deposit”) means leaving one month early can cost you two months’ rent. Negotiate a notice period instead, for example 30 or 60 days’ notice after six months.

2. Deposit plus advance rent of more than three months

   For landlords covered by the 2019 rules, the advance rent and security deposit combined can’t exceed three months’ rent. The usual arrangement is two months’ deposit plus the first month in advance.

3. Electricity or water above the official rate

   Covered landlords can’t charge electricity or water above the rates set by the utility. Household electricity currently works out at roughly ฿3 to ฿4.40 a unit before Ft and VAT (see how Thai electricity bills work). Clauses like “ค่าไฟฟ้าหน่วยละ 8 บาท” (“electricity ฿8 per unit”) are worth questioning.

4. Rent or fees can change during the lease

   A term allowing the landlord to raise rent, utility rates or service fees before the lease ends is on the 2019 prohibited list for covered landlords.

5. The landlord can enter without notice

   Entry without prior notice, except in an emergency, is also prohibited for covered landlords. Ask for a clause requiring notice, for example 24 hours.

6. Vague deposit return

   Covered landlords must return the deposit immediately at the end of the lease, or within 7 days if they need to check for damage you caused. Look for a clear timeline and a list of what can be deducted.

7. You pay for every repair

   Fair leases split it: tenants cover damage they cause and small consumables, while the owner covers structural problems, wear and tear, and major appliances. “The tenant is responsible for all repairs” (“ผู้เช่าต้องรับผิดชอบค่าซ่อมแซมทั้งหมด”) is a flag.

8. The English and Thai versions don’t match

   Bilingual leases usually say which language prevails. If it’s Thai, the Thai text is the one that counts. Check that key numbers (rent, deposit, dates, notice period) are identical in both.

9. Nobody is named for TM30

   The landlord normally has to file your TM30 within 24 hours. If the lease is silent, add it. A missing TM30 can delay your visa extension or 90-day report.

10. You can’t confirm who owns the property

    Ask to see the title (a condo title, อ.ช.2, or land title deed, โฉนด) and the owner’s ID, or a power of attorney if an agent signs. Check who pays the condo’s common area fee (ค่าส่วนกลาง). It’s normally the owner.

Before you sign: a checklist

• An inventory and condition report, with photos, signed by both sides and attached to the lease
• Rent, deposit, advance rent, due dates and payment method written in numbers
• Utility rates and how they’re calculated
• Notice period and early-termination terms
• Who files TM30, and who pays the common fees, internet and repairs
• For a lease of more than 3 years: registration at the Land Office