What should a Property Management Agreement include under Thai law?

1. Definitions and Interpretation
2. Appointment and Authority
3. Services
4. Tenancies
5. Maintenance and Repairs
6. Money
7. Fees
8. Reports and Records
9. Owner's Obligations and Warranties
10. Personal Data
11. Liability
12. Term and Termination
13. Notices
14. Governing Law and Disputes
15. General

• The Manager acts as the Owner's agent. An agent who has a general authority cannot let immovable property for more than 3 years, sell or mortgage it, start a lawsuit or settle a claim without a specific written authority (Civil and Commercial Code section 801). Clause 2.3 follows this rule. If the Owner wants the Manager to sue a Tenant, sign a separate power of attorney for that case.
• The Manager may sign Tenancies of up to … months in the Owner's name (Clause 2.2). Check each copy that the Manager sends you within 3 Business Days. A Tenancy of more than 3 years must be registered at the Land Office and signed there, so keep those for yourself.- The Owner signs every Tenancy itself (Clause 2.2). If you live abroad, you can sign electronically or by PDF, or give a specific power of attorney for a particular Tenancy.
• Receiving and paying money is where most disputes start. An agent must hand over all money received for the principal and pays interest on money that it uses for itself (sections 810 and 811). You chose to have Tenants pay directly into the Owner's Account (Clause 6.1), which is the safest arrangement.Ask for the Client Account details and a bank statement each month (Clause 6.1). Money held for the Owner must be kept apart from the Manager's own money.

• Do not let rooms by the day or the week. That can be a hotel business requiring a licence, with criminal penalties, and most condominium rules prohibit it (Clause 4.2).
• A business that lets residential units to individuals must use the consumer protection standard form for residential leases (Clause 4.3). That form limits the deposit and advance rent, requires a condition report, and restricts charges for water and electricity.
• For each foreign Tenant, the owner or house master must notify the Immigration Bureau of the Tenant's residence within 24 hours after arrival. Clause 3.1(e) makes this the Manager's task; ask for the receipt.
• Leases of more than 3 years require the written consent of the Owner's spouse if the Property is joint marital property.

• The appointment of a property manager for a fee is generally a hire of services. If it is treated as a hire of work, the Manager pays stamp duty of 1 THB per 1,000 THB of the fees; because the fees depend on rent collected, the duty is paid as fees are received.
• Each Tenancy is a separate lease that carries its own stamp duty of 1 THB per 1,000 THB of the total rent, payable by the Owner as lessor unless the Tenancy says otherwise.
• The Owner declares the Rent as income and pays tax on it. A company Tenant withholds 5% of the rent and issues a certificate in the Owner's name; the Manager collects these for the annual summary (Clause 8.2). An Owner who lives abroad may still have to file a Thai personal income tax return for Thai rental income; ask an accountant.
• A VAT-registered Manager charges VAT on its fees. Rent for immovable property is exempt from VAT, so keep the Management Fee separate from the rent in all statements.
• The land and building tax is assessed on the Owner each year. Tell the Manager whether to pay it from the Rent (Clause 3.1(d)).

• The Owner is responsible for the Tenants' personal data, and the Manager processes it on the Owner's behalf (Clause 10.1). Tell Tenants in the Tenancy or a privacy notice that the Manager handles their data.
• Do not ask the Manager to share information about Tenants with other landlords or on blacklists (Clause 10.2).

• Either Party may end this Agreement on … days' notice (Clause 12.2). Within … days after the end, the Manager must hand over keys, files and money (Clause 12.4). Write to every Tenant jointly with the Manager about the new payment details so that no Tenant pays the wrong person.

• Keep the signed Agreement, the Letting Guidelines and every monthly statement with its receipts.
• A Thai court works in Thai. A Party that relies on this Agreement in court must file a certified Thai translation.

Compiled from the notes that accompany the English contract templates on this site, published by Phuwara Krobtaku (ภูวรา ครอบตะคุ), Thai attorney-at-law, licence no. 477/2558. The short answer and summary at the top of this page are put together by the site from the template's clause headings and notes. Statutes are quoted only in the official Thai text: Thai is the only official language of Thai legislation, and an unofficial translation can mislead. Article registry OKC-3FD657. If you reuse this content, please credit the author and link to the original.