Thailand Strengthens Controls on Residential Lease Contracts

Table des matières

Temps De Lecture : 5 minutes

TL;DR Thailand has introduced major changes to rental contracts or residential leases for residential properties. The new regulations address long-standing complaints from tenants about unfair practices in rental contracts, including unjustified forfeiture of security deposits, excessive utility charges, and lack of clarity over rights and obligations. On 6 June 2025, the Contract Committee of the Office of the Consumer Protection Board (OCPB) issued updated rules that came into full effect on 4 September 2025, repealing the earlier 2019 notification.

Introduction :

Thailand’s consumer protection authorities have introduced an update to the regulation of residential leases. This regulation has been introduced to address long-standing complaints from tenants about unfair practices such as unjustified forfeiture of security deposits, excessive utility charges, and lack of clarity over rights and obligations in lease agreements.

On 6 June 2025, the Contract Committee of the Office of the Consumer Protection Board (OCPB) issued the Notification of the Contract Committee Re: The Stipulation of Residential Property Leasing as a Contract-Controlled Business B.E. 2568 (2025). The notification came into full effect on 4 September 2025, repealing the earlier notification issued in 2019.

Points clés

  • The new rules now apply to businesses leasing 3 or more residential units (reduced from 5), bringing more landlords under legal protection requirements.
  • All lease agreements must be in Thai language with clear formatting, include detailed property information, and attach a signed move-in inspection report with both parties’ signatures.
  • Security deposits must be returned immediately upon lease end, or within 7-14 days if inspection/repairs are needed, with limits on advance payments (maximum 3 months for monthly contracts).
  • Tenants can terminate fixed-term leases early after occupying the property for at least 50% of the lease term with 30 days’ notice, while landlords must give a minimum 30 days’ notice to terminate.
  • Businesses violating these rules face criminal liability including up to one year imprisonment and fines up to THB 200,000, with the regulations already in full effect since September 4, 2025.

What Are the New Rental Contract Requirements?

One of the biggest changes introduced by the notification is the expansion of the scope of application. The previous 2019 notification applied only to businesses leasing five or more residential units. Under the 2025 notification, the requirements have now been reduced to three or more residential units. 

By reducing the number of leased buildings required, a greater number of landlords and property operators will now receive legal protection. 

While the notification applies to businesses, it is important to note that hotels, serviced apartments, and dormitories remain excluded from the notification because they are regulated under other specific laws.

Recognition of Electronic Documents

Another important update is the notification’s recognition of the growing role of technology such as electronic signatures in rental transactions. 

Under the new regulations, any lease contracts or tenancy agreements executed electronically, e.g. through online rental platforms or via electronic signatures, must comply with the notification’s requirements and with the Electronic Transactions Act of Thailand. 

This has been done to close regulatory gaps and to ensure that electronically executed lease agreements receive the same legal recognition and protections as paper-based agreements. 

It is important to note that any existing lease contracts that satisfy the previous 2019 rules will remain valid until they expire. However, all new lease agreements executed on or after 4 September 2025 must comply with the new framework.

Mandatory Contractual Requirements

The notification established a set of mandatory requirements that must appear in residential lease agreements. The new mandatory requirements are as follows:

Contract Language and How Rental Contracts Must Be Formatted in Thailand

Rental contracts and tenancy agreements must be written in Thai language, with text printed in a clear, easy-to-read font size, at least 2 mm tall and no more than 11 characters per inch. 

Each contract must also clearly identify the parties or their representatives, provide up-to-date contact details, describe the leased property, and specify the rental fee, service charges, deposits, lease term, utility rates, and payment methods.

An English version of the contract may be prepared alongside a Thai version; however, in the event of any dispute, the Thai language version shall prevail and be the version used by the Thai courts and during any negotiation.

Transparency and Supporting Documentation

To improve transparency between the parties, landlords must now deliver written invoices for rent, utilities, and service fees at least three days before the payment due date. Lessees also now have the right to inspect the supporting documentation for utility and service charges to ensure accuracy.

Additionally, a move-in inspection report must be attached to the lease agreement, providing a clear record of the property’s condition at the start of the tenancy. Photographic evidence may also be included. The inspection report must be signed by both parties.

Return of Security Deposits

The notification also offers new protections relating to the return of security deposits. Lessors must return the deposit immediately upon the end of the lease.

If an inspection is required, the deposit must be returned within seven days if there is no damage, or within 14 days after deducting legitimate repair costs if required. Landlords remain responsible for repairs except for minor wear and tear or damage caused by force majeure.

Early Termination and Landlord Obligations

The notification also grants lessees the right to terminate a fixed-term lease early, provided that they have occupied the property for at least 50 percent of the lease term. In order to do so, they must give 30 days’ prior notice and settle any outstanding payments.

If a landlord wishes to terminate the lease agreement, they are required to give a minimum of 30 days’ notice before terminating a lease (or at least seven days in cases involving urgent misconduct affecting other tenants). Immediate termination is permitted only in cases where public order or morality is at stake.

Implied Legal Protections

If any of these mandatory terms are omitted from a lease, the law will imply them into the contract. This means that even if a landlord uses a non-standard lease template, they cannot exclude these minimum protections.

lex nova partners

Prohibited Contract Terms

The notification also establishes provisions that identify which terms and conditions are prohibited from being included in tenancy agreements. Any of the following prohibited terms that appear in a contract will be considered void and have no legal effect, even if the tenant signed the lease.

Limits on Advance Rent and Deposits

Landlords may collect:

  • Up to three months’ rent for short-term contracts or long-term contracts with monthly rental payments.
  • Up to one year’s rent for long-term contracts with annual payments.

Anything greater than these limits is not permitted.

Restrictions on Rent Increases and Charges

Landlords are prohibited from:

  • Increasing rent or service charges before the lease expires.
  • Confiscating deposits without tenant fault.
  • Entering the property without prior notice (except in emergencies).
  • Charging utility rates above official government tariffs.

Unenforceable Contract Terms

The following types of clauses are considered void and unenforceable:

  • Holding tenants liable for normal wear and tear or damage beyond their control.
  • Lockouts or seizure of tenant property.
  • Charging “renewal fees.”
  • Terminating a lease without a material breach by the lessee.
  • Holding tenants liable for normal wear and tear or damage beyond their control.

Consequences for Non-Compliance

Failure to comply with the notification could result in serious consequences for the offending party. Businesses who breach these rules may face criminal liability under the Consumer Protection Act, including imprisonment for up to one year, fines of up to THB 200,000, or both.

What does this Mean for Landlords and Property Management Companies?

The September 2025 compliance deadline has now passed, meaning landlords and property managers should already have reviewed and updated their lease agreements to meet the new requirements.

Any template contracts should have been updated, and deposit handling procedures, invoicing practices, and online leasing systems must be updated to make sure that they meet the requirements of the new regulation. 

If these updates have not been completed yet, it is highly recommended to do so as soon as possible. Non-compliance can result in landlords facing legal risks, as well as significant criminal penalties.

Veuillez noter que cet article est fourni à titre d'information uniquement et ne constitue pas un avis juridique.

Partager:

discutez avec nous

Table des matières

discutez avec nous

Related Posts

Nous contacter

For further information on how our team can assist your business ventures in Thailand, feel free to contact us. As a trusted law firm in Bangkok, our team of legal experts is here to provide tailored advice and support to help you navigate the complexities of corporate affairs and achieve your business goals. Contact us today to schedule a consultation.