This is also known as the UN clause and it is usually required in the lease agreement by multinational companies who may transfer their employees anytime from country to country. It should go something like this:

“Should the Lessee be compelled to leave Bangkok due to unforeseen circumstances beyond the control of the Lessee i.e. overseas job transfer, the lease may be terminated after completing a minimum stay of (6 – 10) months on the premise, by giving 60 days advance notice in writing with supported company documents, and the deposit paid in advance shall be returned. “

Different apartments have varying policies regarding the diplomatic clause and will require a minimum stay, ranging from 6 – 10 months in order for this clause to be applied. Same for condos and houses.

I felt the need to write this article after realising how many expats relocating to Thailand do not know how the real estate market works here, especially for rentals. The good news is, it’s a renters market.

1) Landlords pay the agency commission, not you! Aren’t we off to a good start already?

2) In Bangkok alone, there are hundreds if not over a thousand real estate agencies/agents to choose from. Just do a search on Google for real estate agencies in Bangkok and more than a quarter of a million pages show up.

3) Real estate agents offer their services for free, so you can engage as many agents as you want whether you are looking to rent or buy a property!

4) Majority of the agencies catering to expats have websites with photo listings and have English speaking staff.

5) As an expat, you pay the same rental rates as a Thai national. In fact, majority of landlords prefer an expat tenant and go the extra mile (sometimes) to get you to sign on the dotted line.

Now that you know all that, here’s what you wouldn’t normally know unless you are an agent here in Bangkok!

In Thailand, anyone can be an agent! There is no governing body or an association (with authority) that regulates the activities of agencies and agents on Thailand. Walk into a bar and tell someone, anyone that you are looking for an apartment, and chances are there’ll be a “freelance agent” somewhere in the midst to help you out. I don’t think there is any real harm in that as long as you are not required to pay them anything (the landlord does), except that you may be limited to inferior housing options since these are not professionals who can show you an array of places that best suit your needs or budget. That said, I do occasionally hear of some lucky fella who found a great deal through a friend’s friend who happened to be a “part time agent.” Anything is possible in Thailand! 

Here’s how I see it. A real estate agent’s job is pretty much like a match maker’s. He/She needs to match You to the “right” property, and preferably within 8 selected options. I don’t know about you, but I do not believe in seeing as many properties as possible just to make sure I’ve covered every single, available unit for rent in Bangkok. 6 - 8 well selected choices seen within a day or two, is much more gratifying than spending days, if not weeks stuck in traffic jams trying to hit the 25^th property-viewed mark. Fact is, people don’t usually have an array of favourites to choose from (since not all the best ones will be available at one time) and I don’t think there is a “perfect” apartment or house when it comes to renting. You’d be lucky to have 2 top choices to choose from, but most of us usually settle for the place that feels most like home in a foreign country.

The other thing you should know before you line up a dozen agents for your showing is that all agencies have access to the same apartment buildings. Condo and house listings may vary from agency to agency but landlords often contact more than one agency to promote their property so nothing is exclusive to an agency here. Or should I say, rarely. Just surf around and you’ll find similar properties listed on multiple agency websites. Thus, arrange your viewing with one agency at a time. That way, if you feel that your appointed agent does not understand your needs, switch agency but tell them what you have already seen with your previous agent. It is only fair that only one agent represents you for each property. Bangkok is a small town, and many agencies practice co-broking to provide as many choices for their clients as possible, so your name will get around, especially if you’ve been agency shopping.

Another thing I’ve encountered is that some companies have what they call a “preferred agent” which they (strongly) encourage their expat executives relocating to Bangkok to use. More often than not, these are agencies with relations in the HR department who may understand what your HR wants but not necessarily what you want! What you and I call “Western standard” can be a totally different concept to some of them, so be sure to explain your requirements and needs to your appointed agent as thoroughly as possible to avoid wasting your time. You have the right to choose whichever agency that best understands your needs; and manages to find you that ideal home. You’d usually find that agents not appointed by your company tend to try a lot harder than these “preferred agents” because they don’t think you are obliged to use them. They work very hard to make sure you choose them over your company’s preferred agent!

There are also many real estate agencies in Bangkok that are run by foreigners and these are generally whom the majority of expats go to when looking for a new home. It makes a whole lot of difference when you have an agent who understands your needs, and knows exactly what you mean when you say “I want something spacious, modern and bright” versus trawling around day after day going from one cruddy apartment to another thinking “there has to be better choices than these in Bangkok!” but never finding it.

All apartments and agencies have pretty standard contracts. If you would like to view one, just email me and I’ll send it to you. Should you decide on an apartment, they will provide their own contract, whilst the agency will prepare the contract for private owners i.e. condos and houses. Read more about the difference between an apartment and condo. Multinational companies usually require a diplomatic clause, and if your company is paying your deposit, then they would also require an additional clause that states that this deposit will be returned to the company at the end of the lease term. All of which may be added to the lease (most apartments are pretty flexible here), and it’s your agent that needs to sort this out between your company and the apartment/landlord. It’s utter nonsense when someone tells you to use a particular agent because they comply with the company’s policies. It’s just a matter of working out what each party requires in the lease agreement, which I believe is same all around the world and any experienced agent will be able to do that.

Well, all the best in your home search. Thailand is a great place to live and Bangkok, in particular has many superb housing choices for expats that are reasonably priced compared to neighbouring countries i.e. Singapore and Hong Kong. Choose an agent who takes the time to understand your needs and you’ll do just fine, and feel free to drop us a line at 08 1750 6682 should you need any help.

Maddy Barber