Been looking at renting a house in Hua Hin. I understand the one month in advance and the one month rent. Can someone tell me what is the insurance charge for? Do I get my money back if I don’t use it?
Thanks
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TLDR : Answer Summary
The original question sought clarification on an insurance charge associated with renting a house in Hua Hin, with a particular interest in whether this charge would be refunded. The subsequent comments revealed that the term 'insurance charge' is not standard in Thailand, with many respondents indicating that it may actually refer to a security deposit. Typically, landlords in Thailand ask for one month’s rent in advance and one to two months’ security deposit. While laws specify differing rules for landlords depending on the number of properties they manage, the practice of charging additional fees can occur. Additionally, the refunding of the security deposit often depends on the property's condition upon moving out, with cleaning fees potentially being deducted. Overall, there is skepticism regarding the validity of such insurance charges, and renters are advised to negotiate and clarify terms before committing.
Hans *********
Its only s Security Deposit not an Insurance!
Terary **********
I have never heard of insurance.. Also I have never rented in Hua Hin. Have you talked to other landlords? Are they also doing that?
no have not talked to others. But this is a new thing and I believe they are trying to get a little extra out of you by using insurance
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Michael **************
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Damien ********
I read something a little while ago that since 2017 (I think) it's illegal to charge 2 month security deposit. Only now allowed to charge 1 month. That won't stop then for trying though!
Steve **********
A few years ago law changed to provide e for any landlord with 4 or more units could only charge 1 month security.
Thing to watch. Law says pay Elect at govt rate. Many owners try and charge 7 or 8 bt/unit, in many cases doubling rent.
Have noticed new scam of Insurance fee. No such thing. They all have friend selling insurance with kickbacks. Unless you need personal insur. for valuables..just say no.
Not to be neg. But assume you lose security.cost of recouping is stressful.
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Steve **********
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Vance ********
I've always gotten my deposit back. But I leave the condo at least as clean as I found it, photographically document any existing damages when I move in, and have those attached to the lease and initialed by the owner or property manager.
Puma **********
As a landlord, I usually ask for one month rent in advance plus two-month deposits. There’re a few reasons for that. (1) A tenant has to inform us one month in advance before moving out so he doesn’t have to pay the rent for his final month. (2) There will always be 2,000THB cleaning deposit and pending water/electric bills after the tenant moved out. I normally ask for the tenant’s bank account number so I can transfer back the remaining balance of his deposit. Not sure how other landlords do it.
Yep! Thorough cleaning to include screen and glass doors and windows after everyone leaves. Forget to mention that I also pay every month for my yardman to take care of the yards during their stays. It’s a complimentary to help saving their time, cost, and effort.
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Puma **********
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Rollo ************************
The truth is, according to Thai law, landlords are only supposed to charge one months rent along with one months deposit. The trouble is, Thai’s have never been very good at following the rules and only very few people or regions follow this to the letter.... it doesn’t help any when foreigners come here and follow suit or over pay for homes and apartments that would otherwise be cheaper for us just because we can afford to pay more than your average Thai. It creates a dangerous precedent. Thai’s are not reasonable/logical people and once one idiot over pays on a place, that figure 💰 gets locked in a Thai’s head and its syanora sucka for the rest of us as they only see foreigners as walking ATM’s with 🤑dollar signs in their eyes— 😂 I’ve come to see that mostly realtors charge 3 months. Probably where they get their commissions although actual landlords probably do it when they offer a furnished place despite that still being illegal— 😉
The 1 month law is for property owners with 5 or more properties. A landlord renting 1 or 2 properties can ask for 2 months legally. You are right about the agents - they get 1 months rent as commission. It was same in Singapore but there usually 2 year contracts
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Greg ********
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Brett *********
As far as getting it back, depends on many factors such as any damage or cleaning fees. Also not all owners give it back. My experience is usually a 50% loss for made up reasons and standard cleaning fee.
Brett *********
Some people call the security deposit "insurance". Is that what they mean?
Tony *********
All we paid is 1 month advance and 1 month security deposit for condo in BKK
Garrett ***********
What insurance charge? I've never heard if anyone being charged renters insurance in Thailand, didn't even know that was a thing here.
Normally on a 12 month lease it's 2 months security but I'd encourage you to negotiate down to 1 month security deposit.
Greg ********
Once again I agree but if a landlord sees a similar property going for more they want that price too. There are agents on the scene too who over promise landlords about what they can get.
Yeah I've seen it. It's a shame, they'd rather let a unit sit empty for a year then lower the rent 1k baht. I've seen it a lot actually.
Bobby ********
Garrett Greenwald. Yep. I had a condo two years ago. I wanted a 500 baht reduction and actually showed the owner the advertisement for EXACTLY the same unit in the next floor up which was 1000 baht cheaper. I said I'd be happy with 500 baht reduction. Owner refused. I moved into the other unit. The one I was in is still unoccupied (like 50% of the building) two years later. It's a huge cultural difference between Thais and westerners, this saving face nonsense.
Happens a lot in Singapore too. I did my MBA in Singapore and used to sit next to a Chinese Landlord in some classes. Always remember him as he used one of those old desk calculators with a SGD coin sellotaped to it. In a class we brought up the sitting empty and no rent thing. He explained it from his point of view. Face, Guanxi, helped in his negotiations elsewhere all came into it.
With you on the 1 month deposit. The 2nd month is usually the agents commission. I rent directly from owner right now so only 1 month. I am looking to move and 1 month deposit will be one of my conditions. It is a renters market out there now so should be OK.
Honestly I don't see the country recovering that quickly. I think travel in general will be slow to recover for a variety of reasons. Could be wrong though.
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Garrett ***********
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