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Top Four Contractual Clauses When Letting Your Property in Thailand

The Deposit

The deposit is the most powerful leverage the property owner has of ensuring their property is returned in the same condition as it was leased or rented. Usually the deposit is between one and three months’ rent, but each property owner must consider their own unique letting variables.

Is the property a luxury residence? Are there many breakables including furniture included? What bills could be outstanding after a renter leaves your property? Never return a property deposit until your property has been fully inspected. Make sure the leaseholder or renter is aware of this before signing a contract.

Lease Duration

Make sure your written contract has predetermined the lease duration. If the lease holder decides to break the agreement prematurely, it is normal to keep the deposit or a portion of it. Lease or contract durations are normally a minimum of one year, but for cheaper and lower priced properties it is normal to consider one, three or six months, as these types of property renters are often more mobile and flexible in their work routines, requiring them to move more frequently. Ultimately the choice is yours as it is you, the property owner in Thailand, who knows how quickly they wish to fill the property.

Wear & Tear + Breakages

Any Thai property you lease or let is going to be subject to normal wear and tear issues. It’s unfair to charge for these issues and these can include, bathroom grout going off colour, windows unclean, carpets fraying and curtains fading. However, a large carpet stain on a new carpet may be the responsibility of the person letting your property in Thailand. Make sure the ground rules are clear in the contract before signing, and avoid being overly pedantic, by choosing to outline clear guidelines based on mutual respect and consideration.

Water & Electrics Extra

It’s completely normal in Thailand to charge extra for the water and electrics. While the water rates are inexpensive in most places in Thailand, if the water is included in the price of the rent there is a propensity for the person letting the property to abuse the water usage. Most people letting properties in Thailand are aware that it’s impossible to include the electric bill in the monthly rental, because of the air conditioning costs, which can wipe out any profits made in just days and weeks if the air conditioning is left on full-blast and 24/7. One way around this is to give away a number of units free, and if the electric bill goes over this limit then the normal charges kick in. This method is well liked by Thai villa owners who rent their properties for days and weeks rather than months.

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