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August 26, 2025

Thailand Strengthens Controls on Residential Lease Contracts

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Thailand’s consumer protection authorities have strengthened oversight of residential leasing businesses following numerous complaints about unfair lease terms, including unjustified deposit forfeitures and excessive utility charges.

The Contract Committee of Thailand’s Office of the Consumer Protection Board issued the Notification of the Contract Committee Re: The Stipulation of Residential Property Leasing as a Contract-Controlled Business B.E. 2568 (2025), published in the Government Gazette on June 6, 2025. The notification becomes effective on September 4, 2025, and repeals the prior notification issued in 2019.

The notification prescribes two types of standard residential lease contracts: short-term residential lease contracts (for leases of not more than three years) and long-term residential lease contracts (for leases of more than three years up to 30 years or for the lessee’s lifetime). However, use of these standard contract forms is not compulsory, and parties may use any form as long as the terms do not contradict the notification’s requirements.

Expanded Scope

The notification expands the scope of enforcement to include any lessor with at least three residential units, while the 2019 notification applies only to businesses leasing five or more residential units. Hotels and dormitory operators are excluded, as they are regulated under other specific laws.

Residential lease contracts entered into under the 2019 notification will remain valid and enforceable until the expiration of the contract. Any residential lease contract executed from September 4, 2025, onward must comply with the new notification.

The notification also expressly extends its applicability to lease contracts made through online platforms. Electronically executed lease contracts must comply with the required and prohibited terms specified in the notification as well as applicable laws governing electronic transactions in Thailand.

Mandatory Terms and Conditions

Residential lease contracts must contain clearly legible Thai text no smaller than two millimeters in size and no more than 11 characters per inch. Contracts must include the following required terms:

  • Details. Parties or representatives, contact information, leased property, lease fees, service fees and deposits, duration of lease and utility rate, and payment method and deposit amount.
  • Invoices. Lessors must deliver written invoices for rent, utilities, and service fees at least three days before the due date; lessees have an express right to inspect underlying cost data.
  • Move-in inspection record. A jointly signed condition report (with optional photos) must be attached to and form part of the lease.
  • Deposit return. Lessors must return the security deposit immediately at lease end. If inspection is required, deposit return must be completed within seven days (if there is no damage to property) or 14 days (after deducting repair costs if damage exists).
  • Repair responsibility. Lessors must be responsible for any repair except minor repairs due to normal wear and tear or damage caused by force majeure.
  • Lessee early termination rights. In fixed-term leases, lessees may terminate after having occupied the property for at least 50% of the term by giving 30 days’ notice and clearing any outstanding payments.
  • Lessor termination procedure. Prior written notice of at least 30 days (or at least seven days for urgent misconduct affecting other lessees) is required before the lessor may terminate; immediate termination is allowed only for violations of public order or morality.

If the contract does not expressly contain these mandatory terms, the provisions will be deemed incorporated into the contract as implied terms.

Prohibited Terms and Conditions

The notification prohibits the following terms and conditions in the lease contract:

  • Unreasonably exempting or limiting the lessor’s liabilities for breach of contract.
  • Permitting the lessor to collect advance rental fees and security deposits exceeding:
    • Three months’ rent for short-term residential lease contracts or long-term contracts with monthly rental payments.
    • One year’s rent for long-term residential lease contracts with annual rental payments.
  • Permitting the lessor to adjust rental fees or service charges prior to lease term expiration.
  • Permitting the lessor to confiscate the security deposit or advance rental fee without fault on the part of the lessee.
  • Permitting the lessor to inspect the leased premises without prior notice, except in cases of emergency.
  • Permitting the lessor to set utility charges (e.g., water and electricity) at rates exceeding official government tariffs.
  • Permitting the lessor to lock out the lessee or confiscate or relocate the lessee’s belongings without lawful termination of the lease agreement.
  • Permitting the lessor to demand a renewal fee for contract extension.
  • Granting the lessor the right to terminate the lease agreement without a material breach by the lessee.
  • Imposing liability on the lessee for damage resulting from normal wear and tear, ordinary use of the property, or causes not attributable to the lessee.

If any prohibited terms are found in the lease contract, such clauses are deemed nonexistent and unenforceable.

Noncompliance

Noncompliance with these requirements may result in significant penalties. Failure to comply may result in criminal liability, including imprisonment for up to one year, a fine of up to THB 200,000, or both, as stipulated under the Consumer Protection Act. Business operators should review and, if necessary, revise their standard residential lease contracts to avoid exposure to these penalties.

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