Who Is a "Business Landlord” in 2025 (≥ 3 units)
Under the 2025 Contract Committee Notification, a landlord is a "business operator” when they offer three or more residential units for rent (in one or multiple buildings). These leases are "contract-controlled” and must follow the rules below.
Mandatory Contract Terms (Effective Sep 4, 2025)
What must be in the lease
- Thai-language contract (bilingual recommended); readable font; duplicate copies.
- Parties & contacts; address; condition & inventory; term; rent & schedule.
- Utility & service-charge calculation basis; deposit & advance amounts.
- Written invoices for rent/utilities/fees delivered ≥ 3 days before due date.
- Move-in inspection and signed condition report (photos recommended).
Prohibited clauses
- Unilateral rent increases during a fixed term.
- Charging above official electricity/water tariffs.
- Deposit forfeiture without tenant fault; charging for normal wear & tear.
- Entry without prior notice (except emergencies) or self-help lock-outs/seizures.
- Automatic renewals or termination without material breach.
Deposit & Utilities — Quick Reference
| Area | Rule |
|---|---|
| Deposit + Advance Caps | Typically ≤ 3 months’ rent combined (monthly-paid). For annually paid long-term leases, ≤ 1 year’s rent. |
| Deposit Return | ≤ 7 days after move-out if no damage; ≤ 14 days with itemized deductions & receipts. |
| Utilities | Electricity & water charged at official provider rates (no mark-ups); any service fee must be reasonable with a stated method. |
| Invoices | Rent & charges must be itemized and delivered in writing ≥ 3 days before due. |
Early Termination (Tenant)
For fixed-term leases with business landlords, tenants may terminate after occupying ≥ 50% of the term by giving 30 days’ written notice and settling charges to the effective date.
Lease Registration & Renewals (Civil & Commercial Code)
- Maximum registered term remains 30 years; any longer period is reduced to 30 by law.
- Renewals must be re-negotiated and registered as a new lease; "automatic” renewals are not enforceable.
- Leases exceeding 3 years must be registered at the local Land Office for full enforceability.
99-Year Lease Plan — Current Status
In 2025, Thailand considered extending lease terms to 99 years to attract investment. As of September 16, 2025, the proposal has been paused/shelved pending further review. Monitor updates before relying on a 99-year structure.
Taxes on Rental Properties (2025)
| Tax | Who Pays | Typical Rate / Note |
|---|---|---|
| Land & Building Tax (LBT) | Owner or long-term leaseholder | Residential tiers commonly ~0.02%–0.10% (value-based). Higher rates apply to vacant/other uses. |
| Rental Income – Non-Residents | Landlord (foreign, non-resident) | 15% withholding on gross rent; treatment may not be final—annual filing & DTAs can reduce effective tax. |
| Rental Income – Thai Residents | Landlord (resident) | Progressive PIT; standard 30% expense deduction for rental income often available. |
FAQ — 2025 Residential Leasing in Thailand
Do the 2025 rules apply if I rent only two units?
No. The new notification targets "business landlords” renting three or more residential units.
How fast must a deposit be returned?
Within 7 days if no damage; within 14 days with lawful, itemized deductions.
Can a landlord charge above the government utility rates?
No. Electricity and water must be billed at official tariff rates (no mark-ups).
Is the 99-year lease available now?
No. The plan is paused as of mid-September 2025. Rely on the 30-year framework until official changes are enacted.
Need a Compliant Thai–English Lease for Phuket?
Last updated: 8 Oct 2025 (Asia/Bangkok).
