The Condo Tenant’s Handbook : Every Expense before Renting
25 Feb 2021
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What expenses should a newbie condo renter prepare ahead of signing the rent contract, or perhaps even before looking around for a condo? What is advance rent? And what about the security deposit? Today, Plus Property comes to you with the answers.
The Condo Tenant’s Handbook: What Needs to Be Paid before the Stay?
1) Advance rent
Item |
Standard rate |
|
Advance rent
|
Equal to 1-3 months of rent (ordinary landlord) |
Equal to 1 month of rent (landlord renting out > 5 units) |
As a tenant, the first important thing to grasp is the rent model (regardless of whether the property was a condo, house, etc.), which usually comes in the form of ‘pay before stay’. This means a tenant has to pay ‘advance rent’ in order to acquire the right to move in. The number of months in advance mainly depends on the category of landlord renting out the property, as explained below:
- Ordinary landlord
The typical landlord – an individual who does not formally operate a property rental business – who does not rent out (room, house, condo unit, etc. but excluding rental apartments and hotels) more than 5 units of properties may legally demand between 1 to 3 months of advance rent.
Example
- Rent is 15,000 baht, and 2 months’ advance payment is stipulated
- Advance rent that has to be paid before moving in: (15,000 x 2 months) = 30,000 baht
- Landlord who rents out more than 5 units:
A lessor who formally operates a property rental business – someone who rents out (room, house, condo unit, etc. but excluding rental apartments and hotels) more than 5 units of properties – may legally demand only 1 month’s worth of advance rent. Demanding more than one month’s advance is unlawful and could subject the lessor to complaints.
Example
- Rent is 15,000 baht, and 1 months’ advance payment is stipulated
- Advance rent that has to be paid before moving in = 15,000 baht
This prepaid amount, once made, is considered advance rent and generally counts as payment for the last month’s rent. Alternatively, it could be considered as payment made for the first month. For instance, the tenant would not need to pay the rent for the final month of occupancy upon the arrival of the month, and would only be accountable for the water and electricity bills.
2) Security deposit
Item |
Standard rate |
|
Security deposit |
Equal to 1-2 months of rent (ordinary landlord) |
Not exceeding 1 month’s rent (landlord renting out > 5 units) |
In addition to advance rent, the tenant needs to present another amount of money to cover the security deposit (sometimes called damage deposit or tenancy deposit). This amount serves as a measure of security for the various assets inside the room. The amount is the same as the rent for one month. To illustrate:
- Rent = 15,000 baht
- Security deposit = 15,000 baht
Upon the end of the tenancy, the landlord must return the full amount of the security deposit to the tenant if no damages were incurred upon the assets specified within the lease. If damages have taken place, deductions may be made from the deposit or in some cases the entire amount may be withheld.
To prevent the security deposit from being withheld, the tenant should thoroughly inspect the list of assets secured under the deposit, which can be found attached to the lease. The tenant should also take pictures of the room before move-in, to be used as proof of the room condition before and after the tenancy.
3) Parking fee
Item |
Standard rate |
|
Parking fee |
No charges |
Charged at the rate applied at each property project |
A tenant who has a car and needs parking space may need to pay a parking fee. This fee is commonly applied at condominium projects that have very limited space.
In some cases, the landlord may rent out the room alongside the parking space. But per the conditions agreed by both parties, sometimes a room does not come with parking space. The tenant should inquire about the parking fee and payment model (monthly or yearly) with the landlord.
It is also prudent to re-check the fees with the project’s juristic person. Some places may not charge any parking fee whereas others will charge for each parked car that exceeds a room’s parking quota.
4) Internet Expenses
Item |
Standard rate |
|
Internet expenses |
Installation fee + monthly service fee (selecting own service provider) |
Monthly charge (condo internet / previously installed) |
Many would-be tenants preparing money for renting a condo forget about this expense. Although miniscule, this amount goes toward paying for an important service and should be prepared in advance so internet is available on the move-in day. This expense may come in two forms:
New installation:
No internet service has been preinstalled either by the management or by the landlord, and the tenant has the freedom to select the desired service provider. In this scenario, the tenant may also be subjected to an
Use the service offered by management or one previously installed by the landlord:
Internet is available from the condo management or has already been installed by the landlord, and the tenant is allowed to use the service by paying the respective monthly service fee. In this scenario, the tenant would save on the installation fee but it is advisable to check if the internet speed was sufficient and whether the Wi-Fi signal was stable enough for the tenant’s use.
Summary:
- Expenses the condo tenant definitely will have to prepare are advance rent, security deposit and internet fees.
- Parking fee may or may not be applicable, depending on what is agreed with the landlord and on the regulations at the condo.
- The advance tent and security deposit are based on the monthly rent.
- Don’t forget to ask the landlord about internet service, to see whether money needs to be set aside for installation and so the monthly service fee can be anticipated.
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5 Important Considerations When Renting A Condominium Unit
For those on the hunt for new accommodation, this quick- reference handbook from Plus Property provides all of the guidance and information one needs to make an informed decision when renting a condominium unit. For English version please send a request to csagency@Plus.co.thDownload
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