In Thailand, foreigners are not allowed to own or purchase land or landed properties except upon approval by the Board of Investment for individually approved businesses.
However, foreigners can own 100% of a condominium unit and up to 49% of the total floor area of a condo project.
Leasehold VS Freehold Property
Leasehold property is usually valid for up to 30 years where the buyer leases the property from the landowner/developer for the said period. Freehold property gives the buyer full ownership rights over the property, after which he can decide to sell or lease the property or to develop the property as long as it follows the guidelines of Thai law.
Most residential developments in Thailand are freehold except projects in some locations such as Ratchadamri or Langsuan where The Crown Property Bureau or other private people own the land.
Leasing a Property In Thailand
Most leasing documents in Thailand contain relatively standard terms and conditions. The following terms usually apply to the leasing of residential properties.
Residential leases are typically for a term of one year with an option to renew for another corresponding period. However, shorter lease terms are also available for negotiation. Upon renewal, rental is usually based on current market rentals.
Most properties for lease are fully furnished with air conditioning, kitchen appliances, and lighting. However, partially furnished apartments can sometimes be pre-arranged with the landlord.
Tenancy deposit and rental
Tenants are required to deposit a cash amount that is equivalent to two months’ gross rent, inclusive of service charge. The deposit is refunded without interest to the tenant, or the landlord may use it to offset any payment owing by the tenant when the lease expires. One months’ rent is payable in advance upon signing the rental agreement.
Maintenance and service charge
For most condominiums and apartments, the rental usually includes a service charge for the general maintenance of common facilities. Should the management corporation adjust the maintenance fee during the term of your lease, the gross rental may be adjusted according to the provision of your lease terms. The tenant is usually responsible for all minor repairs and routine maintenance of the premises. The landlord responsibility is the properties’ wear and tear except those resulting from the tenant’s negligence.
The tenant is required to pay for public utility companies such as electricity, water, and telephone bills directly to the respective local government authorities.
Value added tax (VAT)
Although the lease of residential properties is exempted from the 7% VAT, the lease of any furniture, furnishings, fittings, appliances will be. The tenant will be required to pay VAT only to those landlords who are VAT registered.
Why Using My Services
- I am a well-established agent and have an international network of customers.
- I am connected to local expertise to professionally handle transactions for foreign buyers.
- We can provide after sales services: resell, leasing & rental management.