Thailand Rental and Property Jargon

A lease agreement is a written contract between the owner of the land or property and the person wishing to lease or rent. The time range can vary from one year to 30 years. General information about the property and the tenant's and landlord's responsibilities are outlined and agreed on with a signature from both parties.

Land or property leased for more than three years should be registered with the Department of Lands and taxes will be payable.

If the lease is longer than one year, the agreement can be broken after six months of tenancy as long as a diplomatic clause is included in the agreement. The diplomatic clause imposes a one-month fine which is taken from the security deposit. If there is no diplomatic clause the owner can take as much as three months of security deposit.

In Thailand, it is fairly typical for the landlord to request a security deposit that amounts to two to three months' rent. This deposit covers the breaking of the lease as well as any damage to the property. At the end of the lease the security deposit is refunded as long as the owner is satisfied with the condition of the property.

Rental property tax is 12.5 percent payable by the owner of the property. Some landlords try and make the lessee pay the tax in addition to the monthly rent. Have any tax procedures clearly stated on the lease.

A tenant signs an agreement with the owner of the property and pays rent to the owner every month. A sublease occurs when the tenant leases out the property to a third party. The third party usually pays more than the original rent to the tenant. The tenant makes a profit after paying the owner.

Many owners restrict tenants from subleasing due to potential problems with the property and will state in the agreement that subleasing is not allowed.

In Thailand, it is common for a foreigner to lease a house or land. The maximum time for a lease is thirty years. Any agreement to extend this lease is a private arrangement between owner and lessee and has no protection under Thai law.

Rent is the agreed payment by the tenant to the owner for the right to occupy the property. Rent is usually paid every month, but it depends on the terms agreed on between the owner and tenant.

In Thailand, it is not uncommon for a landlord to request that a tenant pay rent every three months in advance instead of once a month. Some landlords may insist that tenants pay for an entire year prior to moving in. This is not advisable as the landlord then has no incentive to make repairs or needed improvements. Unscrupulous landlords can make the conditions unbearable (turning off the water, electricity, etc.) causing the tenant to vacate and forfeit the prepaid rent and deposit.

A common term to describe an apartment in a large multi-unit building. Not all blocks of apartments are condominiums; the building has to be registered with the land department as a "condominium". This should be checked carefully before signing any agreement for purchase.

Foreigners can purchase a condo outright in their own name as long as the condo is one of the foreign quota of allocated condos. The foreign quota of condos can total no more than 49 percent of the total number of condos in the building.

Very common in Bangkok, these can be rented on a daily, weekly, monthly or yearly basis. A serviced apartment will include beds, chairs, tables, lamps, television and possibly other amenities such as Internet, a gym or swimming pool. Most include a cleaning service and even laundry although there may be an additional charge. Between one and three months' deposit may be required.

An unfurnished apartment may or may not include a refrigerator, fan or air conditioner, light fixtures and beds.

A Letter of Intent is a written offer that expresses a mutual interest in renting the property and states the proposed rent, duration, move-in date and any work necessary to complete the proposed transaction.

A good faith deposit is given to the owner to secure the LOI to prevent a potential lease to another party. It is not typical to give a LOI or a good faith deposit to secure property in Thailand. Generally a lease and security deposit are all that is needed.

In Thailand, the owner typically does not request proof of immigration status. A copy of a current passport attached to the lease agreement is the only necessary document.

2 + 2

2 bedrooms and 2 bathrooms

ADSL or DSL

Internet access via telephone line

Air Con

Air conditioning

Bungalow

In Thailand, a bungalow can mean a property that is not connected to another property and not necessarily only on one level. A bungalow can also mean a small one-room house.

Beach Front

Houses or apartments that are located on or close to the beach

Condo (Condominium)

Apartments or a room with a separate bathroom is considered a condo in Thailand. Up-market condos usually include a swimming pool.

Expressway

Toll roads in Bangkok that generally are not subject to traffic jams

Kitchenette

Small version of a full kitchen with a sink, small refrigerator and a microwave

Land-titled property

Property within its own land

Liv. Rm

Living room

Mae Baan

Housekeeper or maid

Rai

Thai measurement of land 1 Rai = 1,600 square metres; 1 acre = 2.57 Rai (0.4 hectares)

Shop House

A property which is used as residential property as well as a store or a restaurant. Shop houses are very common in Thailand

Soi

Soi is the Thai name for small street or avenue

Sq.m.

Square metre

Townhouse

Townhouses are usually terraced multi-storey houses. Often used as a shop house, these are very common in Thailand

UBC

Satellite TV company popular throughout Thailand

Villa

The term villa is typically used to describe an up-market luxury house with a pool, usually near the beach. However, do not be surprised to find this term used rather loosely in Thailand.

Village

A village in Thailand can mean an area or province. A city can have many villages situated inside the city limits

WiFi

Wireless Internet access