Common Mistakes to Avoid When Renting a House in Phuket as a Foreigner

For foreigners, renting houses in Phuket, Thailand, can present significant challenges, particularly for those unfamiliar with local regulations and cultural practices. To ensure a seamless and hassle-free rental process, it is crucial to recognize common mistakes and strategies to avoid them. This article will examine the primary pitfalls to be aware of when renting a house in Thailand as a foreign national.

This guide offers essential advice to help you navigate the complexities of renting condominiums and apartments, engaging with landlords, and assessing property conditions, enabling you to make informed decisions and safeguard your rights as a tenant.

Whether you’re a first-time renter or an experienced expatriate looking to rent a house in Thailand, this article is invaluable. Carefully review this comprehensive list of ten important considerations for renting in Thailand, where we provide detailed insights and a helpful Pro Tip for each aspect to enhance your renting experience.

(For Rent: Andamaya: 2 Bedroom Condo with Private Pool in Surin ฿140,000/Month)

1. Confusing Condo Rentals with Apartment Rentals

Although these two terms are frequently used interchangeably, in Thailand, condos and apartments represent distinct categories of real estate. Condominiums are individually owned units that can be rented out by their owners, whereas apartments are typically owned and managed by a single rental company.Condo rentals are ideal for those seeking more affordable housing, as apartment rental companies often impose significant surcharges on essential utilities like water and electricity.

2. Paying More Rent Than Necessary

It is crucial for foreigners to understand the rental price structure before leasing a house in Thailand. Landlords may inflate prices for foreigners due to their perceived greater purchasing power.

While areas like Bangtao-Laguna generally have higher rental costs, more affordable options can be found in locations like Thep Krasattri or Pasak. Negotiation is a common practice in Phuket.

The location you choose to rent in can significantly affect your ability to negotiate a better price. Whether you deal directly with the landlord or use a realtor, you can potentially achieve substantial savings on the initial rental offer.

3. Moving In Without a Written Contract

Renting a house in Phuket without a formal contract can lead to significant complications, as property owners have the legal authority to evict tenants, especially in the absence of a written agreement.

Foreign nationals are permitted to rent property while holding a travel visa, provided they meet specific requirements. The visa must be used within 90 days of its issuance, allowing for an initial stay of 60 days, with the possibility of extension. Those with a non-immigrant B Visa can stay for extended periods.

To protect your interests, it is advisable to establish a written contract that clearly outlines all agreed-upon terms, signed by both the property owner and the tenant.

4. Deposit and Damages

Landlords in Phuket typically require a security deposit equal to two months’ rent, along with the first month’s rent paid in advance. Some landlords may also ask for 30 days’ written notice if the tenant wishes to vacate the property.

Be aware that any damage to the walls, such as using nails, can result in additional charges when you move out. Additionally, landlords may require cleaning and painting fees, especially if you’ve lived in the property for a year or longer.

5. Adding Fixtures That Can Lead to Damages and Penalties

In Phuket, landlords commonly require a security deposit equivalent to two months’ rent, along with the first month’s rent paid upfront when renting a house. Some landlords may also require a 30-day written notice before you vacate the property.

While personalizing your rented space with fixtures like shelves and pictures can be tempting, it’s important to understand that any damage from hammering nails into the walls may result in additional fees when you move out. These charges could include wall repair costs, and potentially cleaning and painting expenses, particularly if you’ve lived in the property for a year or longer.

To avoid incurring extra fees, consider alternative methods for personalizing your living space that won’t damage the walls. Using adhesive strips or hooks specifically designed for hanging artwork or shelves can be effective and leave no residue. By adopting these strategies, you can save money and maintain a good relationship with your landlord.

(For rent: 2 Bedrooms Pool Villa for Rent-Sale in Pasak Soi 4/1 ฿100,000/Month)

6. Living Too Far from Public Transport to Save on Rent

One of the challenges for foreigners staying in Phuket temporarily is the lack of personal transportation. Choosing a residence on the outskirts of the city to save on rent can be unwise, especially if it’s far from public transport routes.

An effective solution is to look for a residence that offers shuttle bus services. These cost-effective options provide convenient access across Phuket, including connections to Phuket International Airport via the Central Phuket and Phuket Old Town lines.

If you choose to live in coastal areas like Layan, Naithon, or Maikhao Beach, you may need to rely on ferries, express buses, taxis, or other public transport options. Additionally, expenses for amenities like gym memberships, saunas, tennis courts, and swimming pools can add up. A practical approach is to lease a condominium in a complex that offers these facilities for all residents and property owners.

7. Renting Condo Units Near Empty Lots

Renting a condo or apartment next to an undeveloped lot may seem appealing at first, as many people enjoy the open atmosphere and proximity to nature. However, this option might not be ideal if you plan to stay for an extended period.
Consider looking for Phuket properties that are situated away from construction sites or large vacant areas, as these locations are likely to become active construction zones in the near future.

8. Spending More Than Necessary on Basic Amenities

Many foreigners in Phuket may initially indulge excessively, only to regret their spending habits later. However, Phuket can be a backpacker’s haven, allowing for a modest lifestyle on a limited budget if one embraces frugality. For example, investing in a personal coffee maker and instant coffee can lead to significant savings compared to frequently visiting cafes.

There are various strategies to reduce costs and save money while living in Thailand, which can also help accumulate savings for purchasing a condo in your name. For more insights into the cost of living in Thailand, check out the informative blog post on Silk Estate.

9. Forgetting to Calculate Additional Costs for Furnishings and Extras

Choosing to rent a property with minimal fixtures and a fresh coat of paint, but no furnishings, usually results in lower rental costs compared to a luxurious, fully equipped condo. Tenants can rent or buy furniture from various sources, such as showrooms, boutiques, or second-hand stores. For travelers staying for a short period, acquiring furnishings can be an additional and often unnecessary expense.

Leasing a condotel unit is an excellent option for those who prefer to move in with minimal personal belongings. Condotel units typically come with extensive amenities, including luxurious furnishings, high-quality gym facilities, a swimming pool, sauna, steam room, massage services, and concierge assistance provided by the complex.

10. Living with Your Family in Thailand Without Added Security

Residing in Phuket, whether alone or with family, requires awareness of the city’s overall safety, despite occasional protests and marches. While law enforcement typically responds swiftly to such events, families with children might find it prudent to choose a gated community, such as a condominium complex, for added security.

If you opt for a villa or townhouse, consider implementing additional security measures like employing a guard, installing CCTV surveillance, and using automated gates to enhance the safety of your family.

(For Rent: Anchan: 2 Bedrooms Pool Villa in Thep Krasattri ฿150,000/Month)

Tips:

Selecting a real estate agent to assist with renting, leasing land, or purchasing property, such as condominiums, in Thailand is crucial.

The Phuket real estate market is not heavily regulated, which means that while finding a home might be straightforward, any issues that arise could put a foreigner at a disadvantage.

In Phuket, it is not mandatory for real estate agents to have a license for rental services. To ensure your safety, it is advisable to work with a property agent who has a physical office address and to be assigned an advisor with whom you can effectively communicate, especially in emergency situations.

For these reasons, choosing property advisors who demonstrate both trustworthiness and expertise, evidenced by their proven experience, is essential.

For further information, don’t hesitate to contact us. You can reach us via WhatsApp at +66 (0) 93-578-6028, send us an email at info.cmtopestate@gmail.com, or visit our website at www.cm-topestate.com. We are always available to assist you.