How to Write a Lease Agreement in Thailand: A Step-by-Step Guide

A legally enforceable contract, which in this case we are referring to a lease agreement, specifies the terms and circumstances under which a landlord leases a property to a tenant. To be enforceable in Thailand, the lease agreement must take care to follow local rules and legislation including the Thai Civil and Commercial Code. Drafting a lease agreement that is clear, thorough, and complies with Thai regulations is vital for both landlords and renters. These methodical guidelines will lead you through the essential stages and critical factors when writing a lease agreement in Thailand. 

Understanding Thai Lease Laws and Regulations

Thai Civil and Commercial Code

The primary legislation governing lease agreements in Thailand is the Thai Civil and Commercial Code. According to this law:

- Lease agreements for properties exceeding three years must be registered with the Land Department.

- Leases can have a maximum duration of 30 years, with the option to renew.

- The lease must be in writing and signed by both parties to be valid.

Consumer Protection Act (CPA)

The Consumer Protection Act (CPA) applies to residential leases when the landlord qualifies as a business operator. Key provisions include:

- A written lease must outline clear rights and obligations.

- Tenants must not be unfairly disadvantaged in the agreement.

Step 1: Basic Details and Identification of Parties

Start your lease agreement by identifying the parties involved:

- Landlord: Include the full name, address, and contact information of the property owner.

- Tenant: Provide the tenant's full name, passport or identification number, address, and contact information.

Example:

This Lease Agreement is made on [Date] between [Landlord Name], residing at [Landlord Address], hereinafter referred to as "Landlord," and [Tenant Name], holding passport/ID number [Number], residing at [Tenant Address], hereinafter referred to as "Tenant."

Step 2: Description of the Property

Clearly describe the property being leased. Include:

- Address and type of property (e.g., condominium, house, office space).

- Size of the property in square meters.

- Any additional features (e.g., parking spaces, furniture, or appliances).

Example:

The property subject to this Lease Agreement is a fully furnished condominium located at [Address], with a total area of [Size] square meters, inclusive of one parking space and equipped with the following furniture: [List of items].

Step 3: Duration of the Lease

State the lease term and specify the start and end dates. For leases exceeding three years, note that registration at the Land Department is required.

Example:

The lease term shall commence on [Start Date] and end on [End Date]. If the duration exceeds three years, this lease agreement will be registered at the Land Department.

Step 4: Rent and Security Deposit

Rent

Clearly state:

- Monthly rent amount.

- Due date for payment.

- Acceptable payment methods (e.g., bank transfer, cash).

Example:

The monthly rent for the property shall be [Amount] THB, payable in advance on the [Day] of each month. Payment shall be made via bank transfer to the following account: [Bank Details].

Security Deposit 

Include: 

- Amount of the security deposit (usually comparable to two months’ rent). 

- Conditions under which the deposit may be held or reimbursed. 

Example: 

The Tenant should provide a security deposit equal to two months' rent ([Amount] THB) upon signing this agreement. The deposit must be repaid within 30 days after lease termination, subject to examination of the property and deduction for any damages or outstanding dues. 

Step 5: Responsibilities of the Landlord and Tenant 

This part of the process necessitates clearly outlining the obligations of each party. 

Landlord's Responsibilities

- Maintenance of structural components (e.g., roof, walls). 

- Ensuring the property conforms with health and safety laws. 

- Not interfering with the tenant's peaceful enjoyment of the property. 

Example: 

The Landlord will be responsible for maintaining the structural integrity of the property and resolving any substantial repairs not caused by the Tenant's wrongdoing.

Tenant's Responsibilities

- Keeping the property in good condition.

- Promptly report any damages.

- Using the property only for its intended purpose.

Example:

The Tenant agrees to use the property solely for residential purposes and to maintain it in good condition, except for normal wear and tear.

Step 6: Termination Clause

Specify conditions under which either party may terminate the lease agreement. Include notice periods and penalties, if applicable.

Example:

Either party may terminate this lease agreement by providing a 30-day written notice. If the Tenant terminates the lease before the end of the term without a valid reason, the security deposit shall be forfeited.

Step 7: Renewal and Extension

If the lease includes an option to renew or extend, specify the terms and conditions.

Example:

The Tenant shall have the option to renew this lease agreement for an additional term of [Number] years, provided that written notice is given to the Landlord no later than [Number] days before the end of the current lease term.

Step 8: Dispute Resolution

Indicate how disputes will be resolved. Mediation or arbitration is often preferred.

Example:

In the event of a dispute arising from this lease agreement, the parties agree to resolve the matter through mediation. If mediation fails, the dispute shall be submitted to the Thai courts for resolution.

Step 9: Special Provisions and Attachments

Add any specific clauses relevant to the lease, such as:

- Pet Policy: Whether pets are allowed.

- Subleasing: Whether the tenant can sublease the property.

- Utility Bills: Responsibility for utilities (electricity, water, internet).

Example:

The Tenant shall be responsible for all utility bills associated with the property, including electricity, water, and internet. Pets are strictly prohibited without prior written consent from the Landlord.

Attach supporting documents, such as:

- Property inventory list.

- Copy of the tenant’s ID/passport.

- Copy of the landlord’s ID/title deed.

Step 10: Signing the Agreement

Conclude the agreement with the signatures of both parties and witnesses (if required).

Example (more details below in our template lease agreement)

Signed on this [Day] of [Month], [Year].

Landlord: _________________________

Tenant: _________________________

Witness 1: _______________________

Witness 2: _______________________

Registration with the Land Department

For leases exceeding three years, register the agreement with the Land Department. This process requires:

- Original lease agreement.

- Copies of identification documents.

- Title deed of the property.

- Registration fee (approximately 1% of the total rent value).

Template Lease Agreement Below is an example of a lease agreement you could consider. However, please take care to adjust it based on your individual circumstances This Lease Agreement ("Agreement") is made and entered into on this [Date] by and between   Landlord: [Full Name], residing at [Address], holding ID/Passport Number [Number], hereinafter referred to as the "Landlord."   Tenant: [Full Name], residing at [Address], holding ID/Passport Number [Number], hereinafter referred to as the "Tenant." Both parties agree as follows: 1. Property Description The property subject to this lease is located at [Full Address], described as [Type of Property, e.g., Condominium/House], with a total area of [Size] square meters. The property includes: Furniture: [List of Items] Parking Space: [Number, if applicable] 2. Lease Term The lease term begins on [Start Date] and ends on [End Date]. For leases exceeding three years, this Agreement shall be registered with the Land Department as required by Thai law. 3. Rent The Tenant agrees to pay the Landlord a monthly rent of [Amount] THB. Payment is due on the [Date] of each month. Rent shall be paid via [Payment Method, e.g., bank transfer to Account Number [Account Details]]. 4. Security Deposit The Tenant shall provide a security deposit of [Amount] THB, equivalent to [Two/Three] months’ rent. The security deposit will be refunded within 30 days of lease termination, subject to property inspection and deduction for damages or outstanding payments. 5. Landlord’s Responsibilities The Landlord agrees to: Maintain the structural integrity of the property. Ensure compliance with health and safety regulations. Not interfere with the Tenant’s peaceful enjoyment of the property. 6. Tenant’s Responsibilities The Tenant agrees to: Use the property solely for [Residential/Commercial] purposes. Maintain the property in good condition, except for normal wear and tear. Pay all utility bills, including electricity, water, and internet. 7. Termination Either party may terminate this Agreement with a [30]-day written notice. If the Tenant terminates the lease early without valid reason, the security deposit will be forfeited. 8. Renewal Option The Tenant may renew the lease for an additional term of [Number] years by providing written notice [Number] days before the end of the current lease term. 9. Dispute Resolution In the event of a dispute, both parties agree to resolve the matter through mediation. If mediation fails, the dispute shall be submitted to the Thai courts for resolution. 10. Special Provisions Pets: [Allowed/Not Allowed] Subleasing: [Allowed/Not Allowed without written consent from the Landlord]. Utilities: The Tenant shall be responsible for all utility bills. 11. Attachments The following documents are attached and form part of this Agreement: Property Inventory List Copy of Tenant’s ID/Passport Copy of Landlord’s ID/Title Deed 12. Signatures Signed on this [Date]. Landlord: _________________________ Tenant: _________________________ Witness 1: _________________________ Witness 2: _________________________ Registration Clause For leases exceeding three years, this Agreement shall be registered with the Land Department as required by Thai law. Registration fees, approximately 1% of the total rent value, will be borne by [Specify Party].

Understanding How To Write a Lease Agreement in Thailand

Drafting a lease agreement properly in Thailand involves attention to detail and respect to legal standards. By following the procedures provided in this publication, you can construct a thorough lease agreement that protects the interests of both landlords and renters. Always consider contacting a real estate legal expert in Thailand to guarantee compliance and resolve particular obstacles.