Thailand’s new property rental law, which came into effect on May 1, stipulates that landlords with five or more rental properties are no longer able to profit from utility charges.
An article in yesterday’s Bangkok Post clarified what landlords are able to charge tenants for electricity and water.
Quoting Suwaphan Tanyuvardhana, a Minister in the Prime Minister’s Office, the law requires qualifying landlords to charge electricity and water fees at the standard rates set by utility authorities.
For electricity, it is 3.90 baht a unit and tap water 7 baht a unit.
ThailandProperty.News is currently paying 7 baht for the former and staggering 18 baht for water. We suspect we are not alone.
The article added, as we predicted a while ago, that some landlords have already started to lower the charges to avoid getting into trouble with the law, and at the same time increase the monthly maintenance fees to make up for the shortfall.
Strangely, the Bangkok Post made no mention of the fact that the new law, and the associated non-profiteering for utility charges, only applies to landlords with five or more rental properties.