Phuket Real Estate

There are different types of lease agreements that foreigners should carefully consider prior to leasing property in Thailand. More often than not, these contracts determine the payment responsibilities of the involved parties.

A discussion of these agreements can be viewed below.

The triple-net lease is a covenant wherein the lessee is responsible for all the expenses incurred in utilizing the property. Mostly of these expenses are taxes, insurances and maintenance fees.

Lease Agreements in Phuket

In the meantime, the double-net lease means that the lessee covers all the expenses except for those that have something to do with the maintenance. The latter is addressed by the lessor. When the lessee pays all the expenses that have something to do with ownership like repairs, maintenance, taxes and insurances, this refers to a net lease or closed-end lease.

Lastly, gross lease is net lease’s opposite. Here, the lessor is accountable for all the ownership expenses.

Benefits of Thailand leasehold

Practicality – Practicality is a major benefit of leasing property in Thailand. Under this set-up, the obligations of marinating the land are equally divided between the lessee and the lessor. The former is somehow treated as a co-owner, but without shouldering all the responsibilities such as those of actual property ownership in the country.

Long term - Compared to mere tenancy and as mentioned, leases are for long-term use. This therefore reduces the stress and strain of going through reviewing renewal agreements.

Flexible – Lessees have the option to renew their contracts. They can afford to this since their attachment to the property is not that strong. They can look for another property to rent in the event where their former residence no longer serves their interests.

Summary

Evidently, a lease is yet another method for foreigners to take full control of a property in Thailand. But then again, one should not forget that a lease is still an agreement—a contract that has to be carefully reviewed and examined by legal experts.