So what next, after you have finally found that rental property that is perfect for you?
The first thing you should know is that properties change hands fast in Bangkok. Especially the good ones! I would imagine it’s the same situation in any big cities, especially when the apartment is popular amongst expats. So, when you have finally found that one property you like, try to stop yourself from wanting to see more “just in case there is something else out there” because from my experience, people always come back to the first one they like. Those who are decisive move in without a glitch, while others who hesitate a little too long end up settling for second best and sometimes, paying much more for something similar.
The first thing you need to do is tell your agent you want to go ahead with that particular property. You then need to decide what extras you need in the property and the price you are happy to pay. Then the agent can go off with your offer; and negotiate on your behalf. Once the rental price and extra items are settled, you need to arrange for an initial deposit, or what we call a “booking fee” to secure the property. Without a booking fee, either party can change their mind on the deal but for you, it means that the landlord can rent it to someone else while you are happily packing up for your big move! To prevent that from happening, the initial deposit required here is usually the equivalent to one month’s rent (assuming you are moving in within a month’s time) with the remaining to be paid just before you move in. This can be done once the contract is approved on both ends. Your agent will then arrange for a meeting where the contracts are signed and the booking fee paid. Once this is done, you are pretty much free to go arrange with your movers, cable Tv and internet providers. Depending on your lease agreement, this may either be installed by the landlord or yourself. The process is really quite painless but give yourself at least 2 weeks to get everything sorted and working in your new home.
If you are renting an apartment, which is owned by a single entity or business, chances are the contracts are not going to vary very much since these are very standard leases, thus you can quite confidently put down the deposit and then have the contract sent to you later. Most apartments are flexible on simple clause changes (within reason) but if you require a diplomatic clause included, it’s best you settle that before you put down the booking fee.
Once the booking fee is paid, remember to ask for a receipt. Your agent should make sure all this is settled before you go off and arrange with your movers. Unlike some neighbouring countries, where landlords often change the rental price AFTER a booking fee has been made, I am very happy to tell you that this does NOT happen in Bangkok. At least, not in my years of dealing with Thai landlords. Someone else cannot come along and offer a landlord more for their property after you have put down a booking fee for it, regardless of whether the contract has been signed. Apparently, this is not the case in countries like Singapore, Hong Kong and China. A client of mine who just moved from Singapore told me that they had a landlord who raised the rent on them three times, after a deposit has been made only to rent it to someone else after my client refused to go any higher after the third increment. Of course, they got their deposit back, but this should not happen at all especially when an agreement on price has been made! Thankfully, it doesn’t work like this here.
The standard security deposit in Thailand is two months, plus a month’s rent in advance. Therefore, you pay three months upfront when you move into a new premise. You are entitled to have that security deposit returned to you at the end of your lease term, provided the property is handed back to the owner in good condition, taking into account normal wear and tear. Should you terminate the lease before your lease expires, the landlord shall have the right to retain your deposit unless you have a diplomatic clause in place. However, a diplomatic clause is only applicable in case of overseas job transfer, termination of work or political crisis, and requires company supported documents as proof. You not liking the place you rented does not render that clause effective!
A diplomatic clause will always require a minimum stay of at least 6 -1 2 months, depending on the apartment and owner, before it can be applied in any case. Thus, if you are transferred overseas after only 5 months stay in a rental property, your deposit will be forfeited even if you have a diplomatic clause in your contract.
Please bear in mind that the above information applies for long term rentals in Bangkok, Thailand. If you cannot sign a one year lease, then your best option is a serviced apartment that works like a hotel but more suitable for long term stay since it has some sort of pantry and a little more space. 90% of apartments, condos and houses in Bangkok require a minimum stay of one year minimum. A main reason is because every time a tenant moves out, the entire unit has be repainted and renovated before the new tenant takes over. Thus, you can understand why no one wants to be doing that every few months when a tenant moves out.
