Several mandatory provisions have been introduced into short-term leases to address longstanding tenant grievances. Thailand’s Office of the Consumer Protection Board (OCPB) has enacted stricter regulations for the residential leasing sector.
The new rules, which come into effect on September 4, 2025, aim to curb unfair contract terms and practices that have been the subject of widespread consumer complaints.
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 Royal Thai Government Gazette on June 6, 2025. This notification repeals and replaces the previous 2019 framework, introducing several critical changes to tenant rights and landlord obligations.
This regulatory change has been anticipated by industry observers. Media outlets, including Bangkok Post and Prachachat, have reported on the growing number of complaints related to unjustified security deposit deductions and inflated utility charges, placing pressure on authorities to intervene.
1. Key Provisions of the 2025 Notification
The notification distinguishes between two contract types: short-term leases (lasting up to three years) and long-term leases (lasting more than three years, up to 30 years or for the duration of the tenant’s life). While the use of official standard contracts is not mandatory, any lease agreement used must not contravene the stipulated requirements and prohibitions of the notification.
A primary change is the expansion of its scope. The rules now apply to any lessor leasing three or more residential units, a reduction from the five-unit threshold under the 2019 law.
This change brings a larger number of property owners and small-scale landlords under the OCPB’s purview. The regulation expressly includes leases conducted through digital platforms, ensuring online rental agreements are subject to the same consumer protections.
2. Mandatory Contractual Terms
Lease agreements must be written in clear Thai text of a specified minimum size. Several terms are now compulsory, including detailed party information, a description of the property, and all associated fees.
Key mandatory provisions include:
- Invoices and Transparency: Landlords must provide written invoices for rent and utilities at least three days before payment is due. Tenants have an explicit right to request supporting documentation for utility and service charges.
- Move-in Inspection: A jointly signed condition report, which may include photographs, must be completed and attached to the lease agreement.
- Deposit Return: Security deposits must be returned immediately upon lease termination. If an inspection is necessary, refunds must be processed within seven days if no damage is found, or within 14 days after deducting verified repair costs.
- Early Termination: Tenants in fixed-term leases gain the right to terminate after occupying the property for at least half of the lease term, provided they give 30 days’ notice and settle all outstanding payments.
- Landlord Termination: Landlords must provide a minimum of 30 days’ written notice before termination, except in cases of urgent misconduct, which requires seven days’ notice.
If these terms are omitted from a contract, they are deemed to be implied by law.
3. Prohibited Contract Clauses
The notification explicitly bans several unfair practices by declaring certain clauses unenforceable.
Prohibited terms include those that:
- Allow security deposits or advance rent exceeding three months’ rent for short-term or monthly long-term leases, or one year’s rent for annually paid long-term leases.
- Permit landlords to unilaterally increase rent or service charges before the lease term expires.
- Authorize the confiscation of deposits or advance rent without justification or fault of the tenant.
- Set utility charges at rates higher than those prescribed by the relevant state authorities.
- Allow landlords to lock out tenants, confiscate belongings, or conduct non-emergency inspections without prior notice.
- Impose liability on tenants for damages resulting from normal wear and tear.
4. Compliance and Penalties
Non-compliance with these regulations constitutes a violation of Thailand’s Consumer Protection Act B.E. 2522 (1979). Businesses or landlords found using non-compliant contracts may face criminal penalties, including imprisonment for up to one year, a fine of up to THB 200,000, or both.
We advise landlords and property management companies to thoroughly review and revise their standard lease agreements well before the September 4, 2025, effective date to ensure alignment with the new legal requirements.
Landlords should also consider modifying their agreements with leasing agents to allow for clawback of commissions should a lease terminate early.
Sources:
- Royal Thai Government Gazette. (2025, June 6). Notification of the Contract Committee Re: The Stipulation of Residential Property Leasing as a Contract-Controlled Business B.E. 2568 (2025).
- Thailand’s Office of the Consumer Protection Board (OCPB). Official communications and press statements.
- Consumer Protection Act, B.E. 2522 (1979).
- Bangkok Post. (2025). Reports on residential leasing complaints and regulatory developments.
- Prachachat. (2025). Coverage of the OCPB’s policy announcements.
