THAILAND Law and Practice Contributed by: Olaf Duensing, Jerrold Kippen and Weeraya Kippen, Duensing Kippen, Ltd.
local tax would then affect the financial burden of the lessee. 6.7 Payment of VAT Variation in the rent will depend on the contrac - tual arrangement between the parties. Additionally, some leases shift the local property tax burden to the lessee. Any changes in the local tax would then affect the financial burden of the lessee. 6.8 Costs Payable by a Tenant at the Start of a Lease The following are typically payable by a tenant at the start of a lease: • security deposit (for rental and service fee); • security deposit for any fitting-out period; and • telephone line/internet installation charges. 6.9 Payment of Maintenance and Repair The total amount payable by a tenant is com - monly split into a rental component and a ser - vice component. The service component covers the payment for the maintenance and repair of the shared area. 6.10 Payment of Utilities and Telecommunications Utilities and telecoms are typically charged as follows. • Air conditioning is provided at certain hours and is part of the service agreement. Any additional time outside of these fixed hours will be billed separately at the contractually agreed rate. • Electricity will be charged at the agreed rate according to usage. • Water is charged at the agreed rate according to usage.
• Telecommunications charges will depend on the telecommunications service provider. However, the owner might charge the installa - tion fee to the tenant. It should be noted that the utility rate must reflect the actual rate paid by the owner if the lease falls under certain regulations issued in accord - ance with the Consumer Protection Act, which regulates residential structure leases (as further explained in 6.14 Specific Regulations ). 6.11 Insurance Issues The tenant is usually required to insure against public damages and might insure its own assets as well. The landlord effects insurance of the landlord’s assets, such as the building, decoration and furniture. Events covered are typically physical loss caused by fire, lightning, explosion, smoke, water damage, hail, windstorms, earthquakes and floods. 6.12 Restrictions on the Use of Real Estate The tenant must use the property for the con - tractually agreed purpose and refrain from using the property in any way that is not considered ordinary and usual. Further, the tenant has a duty to take care of the property as a person with ordinary prudence would do. 6.13 Tenant’s Ability to Alter and Improve Real Estate The tenant must use the property for the con - tractually agreed purpose and refrain from using the property in any way that is not considered ordinary and usual. Further, the tenant has a duty to take care of the property as a person of ordi - nary prudence would do.
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