𝐖𝐚𝐫𝐧𝐢𝐧𝐠 𝐚𝐛𝐨𝐮𝐭 𝐭𝐡𝐞 𝐓𝐡𝐚𝐢 𝐑𝐞𝐧𝐭𝐚𝐥 𝐋𝐚𝐰𝐬

When renting a property in Thailand, however if it`s a house, a condo or a shop for an office, it is important to know that your rights are not very valuable when it comes to the quality of the constructions and how the place is actually built or taken care before your rental period.

I will give you an example:

There was a hotel for rent here in Chiang Mai, with 10 rooms and a perfect opportunity to do the accommodation business. The hotel also had a small garden, a small restaurant area and a coffee shop. It was a 3 floor hotel, with lobby, garden and coffee shop downstairs, and 5 rooms in each of the 2nd and 3rd floor.

The hotel didn`t have any access to the roof, but it looked nice and maintained from the 1st to the 3rd floor. This was something that the lessee would find to be not true just a week after the rental period started.

When the first rain came, the water leaked into the hallways in each floor and also to the lobby and the coffee shop. Then the second rain made the one side gutter and parts of the roof fall into the garden area, forcing the hotel to close only days after it opened. It was dangerous to have customers there due to the last incident, so it had to be closed.

The lessee wanted to cancel the lease, as the maintenance would take months to fix. But the owner said that it would be fixed in 2 weeks, and then we could open again. That was of course not going to be true, and also the maintenance was not to be fixed properly as he wanted to save both money and time.

The lessee went to a lawyer to see if the rental agreement could be cancelled, but the law says that the lessor has the rights to fix the damage even if the business has to close due to the damages.

A court case would be possible, but it will not be a certain case, as the lessor might win as he will explain to the court that he fix the problem. However, the lessee will lose a lot more money on the rent as he has to close the hotel and wait for the damages to be done.

This particular case will also cost at least 150.000 thb for the lessee, and if he loses the court case, all his invested money plus the court case would be also lost.

So, this particular story ended with cancelling the hotel rental agreement and no deposit or rent would be refunded.

What can we learn from this?

Check the whole construction on the property before renting, make sure that it is all good. Secondly, make sure that your contract clearly states that you need to get a refund if something like this happens. Also, that it is possible to cancel the contract and get the deposit back, even if the rental period is not ended.

See help BEFORE something happens. Let someone assist you before renting. Then you might save a lot of trouble after it happens.


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