Thai Government Updates Rental Business Regulations: Key Changes for Residential Leases

 

With more people choosing to live in condos and apartments in Thailand, the government has introduced updated rules for rental businesses. These changes, brought into effect by the Consumer Protection Board in 2024, aim to make rental agreements clearer and fairer for both tenants and landlords. The new regulations are known as the “Stipulation of Residential Property Leasing as a Contract-Controlled Business B.E. 2567 (2024).”

What’s New in the 2024 Regulations?

The updated rules apply to property owners or companies that rent out five or more residential units, excluding dormitories and hotels, which follow different regulations. Below are the key updates in the 2024 rental regulations:

1. Lease Agreements Must Be Transparent:
   • Rental contracts must still be provided in Thai, and the law requires that they include more detailed information to ensure fairness to tenants.
   • Any clauses that give the landlord the right to terminate the lease must be highlighted, making them easy to spot.
2. Updated Billing Practices:
   • Rent and utility bills must now be sent to tenants five days before they’re due, providing more time for tenants to review the charges.
   • Tenants also have the right to dispute incorrect charges within a specific period.
3. Stricter Rules for Utility Charges:
   • Landlords are required to show exact calculations for utility charges such as electricity and water, which must now be tied directly to government-set rates.
   • Any hidden fees or overcharges can result in legal penalties.
4. Security Deposits and Damage Inspections:
   • Landlords must return the security deposit within five days after the lease ends, shortening the previous seven-day period. If a damage inspection is needed, it must also be completed within this timeframe.
   • New rules require landlords to cover the cost of transferring the security deposit back to the tenant.
5. New Tenant Rights for Early Lease Termination:
   • Tenants are allowed to terminate their lease early, provided they’ve stayed for at least half the contract period and give 45 days notice, an increase from the previous 30-day rule.
   • Tenants who terminate early must not have any outstanding rent or utility payments.
6. Automatic Lease Renewals:
   • Landlords are no longer allowed to charge additional fees for lease renewals unless clearly stated in the original contract. Renewals must now happen automatically unless the tenant or landlord gives advance notice of termination.

Prohibited Practices Under the 2024 Regulations

The updated rules also continue to prohibit several practices that can harm tenants, including:

• Charging more than three months’ worth of rent and deposit upfront.
• Increasing rent or utility costs before the end of the lease term.
• Entering the tenant’s property without giving proper notice, except in emergencies.
• Charging more for utilities than the government rates.
• Seizing the tenant’s possessions or restricting access without a legal eviction process.
• Holding the tenant responsible for damage caused by normal wear and tear or circumstances beyond their control.

Conclusion: Ensuring Fairness in the Rental Market

The 2024 regulations are designed to ensure that tenants have clear, fair agreements and protection when it comes to rent, deposits, and utilities. They also aim to hold landlords accountable for following proper procedures.

At Sukhothai Interlaw, we specialize in navigating complex property laws, including these new regulations. Whether you’re a landlord or a tenant, our team is here to help you make sure your rental agreements are up to date and in line with the law. For more information, feel free to contact us at +662 212 6866-7 or visit us at 17 Chan 35, Chan Road, Sathorn, Bangkok.