Thai Lease Agreements

Natavadi Phongsuthang
Apr 9
3 min read

What is a Lease Agreement?

The Lease Agreement plays a crucial role in defining the rules and limitations of property usage, which helps prevent disputes between the parties involved, as the terms have been clearly agreed upon in writing. In each country, lease agreements may have different formats and may require specific information to be included, depending on local laws and customs.

In this article, Ravenwing will help you see a clearer picture of Thai lease agreements, explaining the unique elements that should be considered when drafting or signing a lease contract in Thailand.

Common Types of Thai Lease Agreements

When it comes to everyday use, lease agreements can generally be categorized according to the type of property being leased, such as:

Residential Lease Agreement:

This agreement pertains to the rental of a house or other residential property. The lease term is usually defined (for example, one or two years), with rent payments clearly specified in the contract.

Commercial Lease Agreement:

This covers properties like shopping malls, hotels, or office buildings. These leases tend to have longer durations than residential leases and often include additional charges such as common area maintenance fees, water, electricity, and other service charges.

Vehicle Lease Agreement:

Used for leasing vehicles such as cars, motorcycles, or trucks. Terms and service fees will vary depending on the type of vehicle and rental period.

Equipment Lease Agreement:

Applies to the rental of equipment such as tools, electrical appliances, or machinery.

Key Elements of a Lease Agreement

Names and addresses of both the lessor and lessee.
Description of the leased property, including address, size, condition, and shared facilities.
Rental period, specifying the start and end dates.
Rental rate and payment terms, such as due dates and payment methods
Details about advance payments and security deposits.
Terms for property usage.
Conditions for returning the property, including handling of any damages.
Insurance terms, such as coverage for accidents or property damage.
Termination clauses, including end-of-term conditions, renewal options, and cancellation terms.
Lastly, remember to consider stamp duty. Lease agreements are legal instruments requiring stamp duty to be properly executed. The rate is 1 baht for every 1,000 baht (or part thereof) of the total rent specified in the agreement.

How to Draft a Lease Agreement to Prevent Fraud

Renting property is a significant business transaction. To protect yourself from potential fraud, follow these steps:

Check the lessee’s background.

Investigate thoroughly to ensure they have no history of fraudulent activity.

Verify supporting documents.

Check the validity of identification documents such as ID cards, driver’s licenses, or passports.

Clearly define contract terms.

Make sure all terms are clearly outlined, including rental period, rental rates, payment terms, and property usage conditions.

Inspect the property’s condition.

Examine the property before handing it over, so any damages during the rental period can be properly accounted for.

Lease agreements are vital in business operations, allowing the use of property without requiring a significant upfront investment. Careful drafting of the agreement minimizes errors and potential disputes down the line.

In this article, Ravenwing provides you with three commonly used lease agreement templates available for free download: Condominium Lease Agreement, House Lease Agreement, and Shophouse Lease Agreement.

Please note, these are general sample agreements. Be sure to adjust them to suit your specific needs. If the contract involves significant value or complexity, we recommend consulting a legal professional. For legal services or assistance, feel free to contact us at info@ravenwing.co.

Disclaimer: Informational Article, Not Legal Advice