THAILAND Law and Practice Contributed by: Olaf Duensing, Jerrold Kippen and Weeraya Kippen, Duensing Kippen, Ltd.
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.
The use of the property is restricted to ordinary purposes or those provided for in the rental con - tract. A tenant is required to take ordinary care of the property, which includes maintenance and petty repairs, as such care would dictate. If the tenant fails to do so, the tenant may be required by the lessor to comply with such requirements. In the case of non-compliance with such request, the lessor may terminate the lease contract. The tenant is liable for any resulting damage where the tenant fails to advise the lessor of the following facts of which the lessor is unaware: • the rented property is in need of repairs by the lessor; • a preventative measure is required to protect the property; or • a third party is encroaching on or claiming a right over the property. The frequency of rent payments is dependent on the project. Payments are usually made monthly. It is also not uncommon for the full lease amount to be prepaid, which is usually the case with If the initial lease agreement is silent on this point, the parties are free to negotiate the new lease term and amount. 6.6 Determination of New Rent 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. long-term land leases. 6.5 Rent Variation
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