New Regulations for Thailand's Housing Rental Contracts Effective September 4, 2025

Disclaimer: The content of this article is for informational reference only and does not constitute investment advice, a solicitation, or a basis for major decision-making. Please make independent judgments and consult professional advisors when needed.

Question

What is the core objective of the new regulations for housing rental contracts in Thailand in 2025?

AIAIGAnswer

Core objective is to establish unified, transparent, and enforceable contract standards for the national housing rental market, reducing unfair practices by landlords such as excessive security deposits, arbitrary rent increases, and forced clauses, thereby enhancing trust in the rental market and strengthening legal protections, particularly in safeguarding tenants' rights.

Question

What is the scope of application of this announcement? Which landlords must comply?

AIAIGAnswer

When a landlord rents out 3 or more residential properties for profit, they are considered a 'housing rental business operator' and must fully comply with these new regulations.

If a landlord only rents out 1–2 properties, although not mandatory subjects, in actual rental disputes, courts and tenants generally still refer to the new regulation clauses for determination, so it is recommended to follow the regulations to reduce risks.

Question

What mandatory requirements does the new regulation impose on the form of rental contracts?

AIAIGAnswer

- The contract must be provided in Thai and serve as the legal basis (English or Chinese translations may be attached, but Thai is the only effective text).
- The contract must include details and calculation standards for rent, security deposit, service fees, and utility charges.
- It must be accompanied by an inspection checklist upon move-in (which may include photos), clearly stating the condition of furniture, appliances, and any wear and tear.

Question

What restrictions does the new regulation impose on deposits and prepaid rent?

AIAIGAnswer

The total amount of deposit plus prepaid rent must not exceed 3 months' rent.

For example: Monthly rent of 30,000 THB → Maximum total of deposit plus prepaid is 90,000 THB.

This directly ends the previous phenomenon in Bangkok and seaside resort areas where deposits of 6–12 months were often required.

Question

How must utility and service fees be charged?

AIAIGAnswer

Must be charged according to official government standards, no price increases allowed.
Previously, some landlords profited by 'doubling utility fees' will be completely prohibited.

Question

Can the landlord unilaterally increase the rent during the lease term?

Question

How does the new regulation affect the supply and demand structure of the housing rental market?

AIAIGAnswer

- Lower deposits → rental thresholds decrease, demand increases.
- Landlord income buffers decrease → will focus more on tenant credit checks.
- The market will shift from 'extensive renting' to 'refined management + professional hosting'.

Question

Which aspects of the new regulations have the greatest impact on overseas residential investors?

AIAIGAnswer

- Higher compliance thresholds: Requires the use of legal contracts, implementation of deposit systems, and adherence to tenant early termination mechanisms.
- Increased importance of fund management: Reduced deposits → stricter cash flow planning is needed.
- Recommended solutions: Choose professional property management or local legal advisors to reduce risks.

Question

Are commercial properties (office, retail, industrial) affected?

AIAIGAnswer

Commercial leasing is not within the mandatory scope of this new regulation, and is still primarily based on free contract terms. However, in the long term, the strengthening of residential regulations may guide future commercial leasing towards a more transparent contract system.

Question

What changes will occur in the Bangkok market?

AIAIGAnswer

- High-end apartment deposits decrease → Increased demand from foreign tenants.
- Proportion of professional operators rises, rental management tends towards institutionalization and branding.
- New regulations are implemented most strictly → Higher compliance, fewer disputes.

Question

What impact will the Pattaya market experience?

- No damage: Full refund within 7 days.
- If there is damage: The landlord must provide proof of third-party repair quotes and refund the remaining amount after deducting reasonable repair costs within 14 days.
- Normal wear and tear cannot be deducted from the deposit (such as minor wall wear, furniture aging).

AIAIGAnswer

Yes. In a fixed-term lease, if the tenant has fulfilled 50% of the lease term, they can terminate early by providing 30 days' written notice without penalty (just settle the rent).

AIAIGAnswer

No. Rent cannot be changed during the lease term unless both parties agree in writing. Upon renewal, no renewal fee may be charged as a means of disguised rent increase.

AIAIGAnswer

Except in emergencies such as fire, burst pipes, or water leaks, the landlord must notify in advance and obtain the tenant's consent, otherwise it constitutes an illegal infringement.

AIAIGAnswer

Short-term: some landlords may raise initial rents to hedge against the risk of lower deposits.
Long-term: as supply increases and competition intensifies, rents will stabilize or adjust slightly with regional differences.

AIAIGAnswer

Short-term speculators gradually exit, institutional and long-term holding investors significantly increase, and the market overall moves towards maturity.

AIAIGAnswer

No. The new regulations enhance rule transparency and legal predictability, which is beneficial for long-term investors, making the market more stable and better suited for medium- to long-term holding strategies.

AIAIGAnswer

- Long-term foreign tenants will clearly benefit → Increased attractiveness for settlement.
- Short-term rental proportion declines → Some properties shift to monthly and yearly rentals.
- Market transitions from 'tourist short-term rentals' to a 'stable residential' structure.

AIAIGAnswer

- Tenants' legal awareness improves → More landlords actively use standard contracts.
- Long-term residents (digital nomads/retirees) are more willing to rent long-term → Extended stay duration.

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