What is the minimum rental period?
As we are a long term rental agency, the minimum rental period would normally be 12 months. In some cases it may also be possible to rent for 6 months but the vast majority of our landlords require 12+ months rental terms. All our advertised prices are based on a 12 month period, therefore the price would likely be increased by any owner willing to accept a 6 month rental and it’s also noteworthy that we are usually able to secure a greater discount if it’s possible to commit to a longer rental term such as 2–3 years.
How negotiable are the prices advertised?
This all depends on your terms of rental and of course, how motivated the owner is to rent out the property. Factors that will enable our agents to negotiate the best possible price on your behalf will be: i) how soon you can start the rental ii) the length of the rental iii) any special requests such as additional or replacement appliances / items of furniture that requires the owner to invest more money
What are the monthly electricity and water costs?
It would of course depend on how much time will be spent in the property and how dependent the occupant will be on the use of air-con which is the single biggest fact for power consumption. Condos’ utility costs are charged at the standard government rate but this is not the case for apartments which usually charge a higher rate. Its certainly worth taking into consideration the electricity rate charged by a particular apartment as this may significantly impact the monthly living costs, particularly for a larger property and if working from home etc.
How do I pay my rent and utility bills?
Within the rental agreement will be your landlord’s bank account details in order for you to pay the monthly rental payments directly to the landlord via either cash deposit, internet banking or ATM transfer. If renting in an apartment building, you will be able to pay the monthly rent and also the electricity, water and gas usage if applicable. If occupying a condominium or house then you will receive your electricity and water bills directly into your mailbox. Water bills can be paid at the juristic office of your condo and electricity bills can be paid at the counter within any 7 Eleven. If you need help to set up an internet connection or cable TV in your new home, our agents will be able to assist you with that.
What if I have a maintenance issue?
Depending on the severity of the issue, the maintenance staff within the development can usually help resolve most problems. In case of emergency such as water leak, the building maintenance will need to be informed right away and then the landlord needs to be informed so any necessary repairs can be made. If there is a language barrier with your landlord, then our agents can provide support by communicating with all parties..
What happens at the end of the rental period?
The terms of any rental agreement require the tenant to provide a minimum 30 day notice period prior to the end of the contract so our agent will contact you 60 days in advance to remind you that the contract is due to expire but of course its possible to extend for an additional period or we can assist you again to move to a new home. The landlord will usually return the security deposit within 30 days once all the final utility bills are paid and any necessary repairs and cleaning has been completed. It’s always advisable to have the property fully cleaned and for any repairs to be carried out prior to the contract expiry date as this will ensure a faster return of the security deposit as well as keeping any possible costs to a minimum. We are able to provide a detailed photo inventory list upon the commencement of the rental period which will help to minimize potential disagreement and conflicts with the landlord when checking out of the property.
Can a foreigner buy land or property in Thailand?
A foreigner can own a condo outright and the only restriction total ownership in any project cannot exceed 49% of the total number of units in any one building. It is not possible to own land under the name of an individual foreigner’s name but although not ideal (nor strictly legal) its possible to buy under a Thai company but you wouldn’t be the sole owner of the property as it will include 51% from Thai ‘shareholders’ but this method has been used by foreigners for many years all across Thailand. It is extremely important to involve an independent lawyer to ensure that the formed company that holds the property is correctly established to give the foreign buyer total control over the company and its assets, namely the land. For complete peace of mind, we recommend you focus on investing in a condo which provides 100% foreign name ownership.
What taxes would I need to pay when buying a property in Thailand?
If purchasing a property ‘off-plan’, three taxes will need to be paid to the Land Department when the property ownership is registered under your name. Namely these will be 2% transfer fee, 3.3% special business tax (SBT) and 0.5% Stamp Duty. For some taxes, they will be based either on the appraisal price or the actual sale price (whichever is the greater amount). In total the taxes amount to a maximum of around 6.3% costs (not including any agency commission or WHT tax payments) which are usually split between the developer and the buyer but this can vary from one developer to another dependent upon the agreed terms or promotion at the time. In some cases the taxes the buyer pay can be as little as 1% up to a maximum of 6.3%. Only at the point of the ownership transfer will these taxes become payable which often takes between 3-6 months.
For all private sales, stamp duty is only due if the seller has owned the property for more than 5 years and is not required if ownership was for less than 5 years. Business tax (SBT) is only applicable on properties if the seller has had the property for less than 5 years, otherwise this fee not applicable. Withholding Tax (WHT) is almost always paid by the seller, and is in preparation for the property seller’s income tax. This typically ranges from between 5-35% and varies depending on how long the seller has owned the property ie the longer the ownership, the higher taxes will be applied. In regards to who pays the fees, this can vary base by case and subject to negotiation. Most of the fees and taxes are typically covered by the seller while the 2% transfer is usually split 50/50 between the seller and the buyer.
What is the CAM fee for?
The CAM fees (common area maintenance fees) vary from one development to another are typically paid monthly but sometimes requested a year in advance by the projects juristic office and are the calculated by the price per square meter multiplied by the living area of your owned property. The fees cover the general up-keep costs and repairs of the common areas or facilities such as gym, swimming pool, gardens areas, elevators, security staff salaries and all shared areas. It also covers bills for common areas and window cleaning fees.
What is a sinking fund?
The sinking fund is paid by the owners of all new properties such as a condo or villa. It’s a fund reserved for covering the cost of repairs, equipment replacement in common areas and facilities also for any possible structural fixes and is typically calculated by the size of the unit. It normally a one off payment in advance but in some cases it’s may need to be topped up again after several years of ownership, upon agreement by the developer and the owners. This is only payable on new properties and is not required for any pre-existing or completed projects.