By: Mr. Ponthep Werachon,Thai Solicitor & Mrs.Darunee Werachon, Thai Solicitor & Accountant of WERACHON LAW OFFICE, 315/304, Moo 12 Theppasit Road (Soi 12) Nongprue,Banglamung,Pattaya City, Chonburi 20260, Kingdom of Thailand Tel:(038)304 084,(038) 251 533Fax: (038) 304 027 Mobile: 081 423 4255,089 889 6483.

Website: www.thaisolicitor.com, e-mail:thai@werachonlawyers.com

The story of the unfortunate landlord

Many foreigners live happily in Pattaya under the doctrine of ‘sufficiency economy’. They never care about either the apocalypse in 2012 or economic crisis in Dubai. With this low profile lifestyle, a high profit of happiness can be easily pursued in Pattaya. The opening of many big shopping centers in Pattaya can prove that the future of this resort city will be even better than Florida for the real life, not only window shopping.

   As we always say the wealth of the ‘economy’ cannot be measured only by the monetary value. Adam Smith believed that ‘greed’ and ‘gluttony’ was the driving force of the national wealth. The recession in the US can be proof that happiness cannot be pursued by monetary means. The new world order should adopt the doctrine of ‘sufficiency economy’. Jesus said that if you serve money, you cannot serve god.

   Many low profile foreigners in Pattaya earn a living from their hard earned money. To buy a residential property for rent is more preferable than putting money in the Stock Exchanges.  

   However, there is no easy money in the air. There are many landlords who suffer from the tenant who has never paid the rent and refuse to leave the house.

   What can these unfortunate landlords do? You can have diverse advice from many people who profess themselves as a consultant in Pattaya. Some may advice you to call the police to put the tenant in prison. Many landlords ended up in prison with these false consultants.

   If you rent out your property to a foreigner, you should have a bilingual rent or lease contract in Thai and English. There are many real estate agents who can give you a standard form. The deposit of 2-3 months should be clearly explained that it cannot be regarded as a monthly rental fee which must be separately paid in advance. If you rent out your property to a retired foreigner, there will not be any tax involved. The withholding tax of 5% will be deducted from the tenant if your tenant is a foreigner working in a big multinational company who will request a tax receipt from you.

   The rental contract should have the details of the tenant with photocopies of his passport. The rental period can be one year and renewable for another year. If the tenant fails to pay the monthly rental fee for one month, you may terminate the rent contract and demand the tenant to leave the property.

   If the tenant is stubborn and refuses to leave the property, you cannot call the police to kick him out because the tenant still has the right to occupy the property. It is a civil or private case and the police cannot get involved. You must retain a lawyer to send a notice to your tenant to terminate the rent contract. This notice must be served by a registered postal mail to the tenant at least one month in advance.

A delay of justice is a denial of justice

   Many foreigners have the misconception that litigation in Thailand will take many years and foreigners will be unfairly treated. Justice has not only its value but also cost. The one who seeks the value of justice will have to consider its cost. To sue the tenant for eviction will involve the time consuming litigation if the tenant comes to defend the case. To defend the case will take time and money. Most tenants will not want to absorb the cost. If the tenant is default or fails to appear in court to defend the case, the court process can be expedited in the absence of the tenant. It may take less than one year.

Before the judgment for eviction, the landlord cannot enter into the property because it will be the offence of trespass under Section 362 of the Penal Code of Thailand:-

“Whoever enters into an immovable property belonging to the other person in order to take possession of such property in whole or in part, or enter into such property to do any act whatever to disturb the peaceful possession of such other person, shall be punished with imprisonment not exceeding one year or fine not exceeding two thousand baht, or both”

   If the above offence is committed by an act of violence or threat to commit an act of violence or by carrying arms or by two persons upwards participating or by night, the offender shall be punished with imprisonment not exceeding five years of fine not exceeding ten thousand baht, or both.

   Even though you are the owner of the property, the right of possession still belongs to the tenant until the judgment of eviction.

   Some landlords may try to lock the gate with a new key which can be punishable under this offence.

   The easy measure the landlord can do is to cut the electricity and water meters and make sure that the tenant will not enjoy his dinner with a candle light. The tenant cannot put the new meters without your consent.

   The special clauses in the rent contact specifying that you can lock the gate or cut the electricity and water meters can be specified in the rent contract to protect you from being sued by the tenant.

   Can you still say law is equated to the natural justice? Please use your wisdom instead of emotion to solve the problem in this land otherwise you will be in prison instead of the stubborn tenant.