The first thing you should know about investing in Thailand’s capital city is that Bangkok property change hands fast. I would imagine it’s the same situation in any big city, especially when the condo is popular amongst the expat community. So, when you have finally found the Bangkok property for sale which fits the bill, try to stop yourself from wanting to see more “just in case there is something else out there” because from my experience, people always come back to the first one they like. Those who are decisive move in weeks after, excited while those who hesitate too long end up settling for second best and sometimes, may even cost them more in rent.
The first thing you need to do is tell your Bangkok real estate agent you are taking that particular property. You then need to decide what extras you need in the there and the price you are content to pay. Then the real estate dealer can go off and negotiate on your behalf. Once the rental price and extra items are settled, you need to arrange for an initial deposit, or what we call a “booking fee” to secure the property. Without a booking fee, either party can change their mind on the deal but for you, it means someone else can come along and offer the landlord a higher price while you are happily packing up for your big move! To prevent this from happening, the initial deposit required here is usually equivalent to one month’s rent with the remaining to be paid at the signing of the contract. This can be done once the contract is approved on both ends.
Once the booking fee is made, remember to ask for a receipt. Your broker should make sure all this is settled before you go off and arrange for the move. Unlike some neighbouring countries, where landlords often change the rental price AFTER a booking fee has been made, you’d be pleased to know that this does NOT happen in Bangkok. At least, not in my years of dealing with Thai landlords. Apparently, this is not the case in countries like Singapore, Hong Kong and China. A client of mine who just moved from Singapore told me that they had a landlord who raised the rent on them three times, after a deposit has been made only to rent it to someone else after my client refused to go any higher at the third increment. Of course, they got their deposit back, but this should not happen at all especially when an agreement has been made on the price!
The standard security deposit in Thailand is two months, plus a month’s rent in advance. Therefore, you pay three months upfront when you move into a new premise. You are entitled to have that security deposit returned to you at the end of your lease term, provided the property is handed back to the owner in good condition, taking into account normal wear and tear. Should you terminate the lease before your lease expires, the landlord shall have the right to retain your deposit unless you have a diplomatic clause in place. However, a diplomatic clause is only applicable in case of overseas job transfer, termination of work or political crisis, and requires company supported documents as proof. You not liking the place you rented does not render that clause effective!
Please bear in mind that the above information applies for long term rentals in Bangkok, Thailand. If you cannot sign a one year lease, then your best option is a serviced apartment that works like a hotel but more suitable for long term stay since it has some sort of pantry and a little more space. 90% of apartments, condos and houses in Bangkok require a minimum stay of one year and no less. One reason is because every time a tenant moves out, the entire unit has be repainted and renovated before the new tenant takes over. Thus, you can understand why no one wants to be doing that every few months when a tenant moves out.
