A “Booking Fee” or “Holding Deposit” is a standard practice in the Thai rental market. It is an upfront payment made by a prospective tenant to confirm their interest in renting a property and to secure the unit. Once the landlord receives the booking fee, the property is taken off the market, ensuring that no other potential tenants can rent it while the negotiation process is ongoing.
Here are additional details about the booking fee that you should be aware of:
- Amount: Booking fees can vary but typically range from THB 20,000 to the equivalent of one month’s rent, depending on the landlord.
- Payment Method: Booking fees are commonly paid in cash or via bank transfer to the landlord. If you are new to Thailand and do not have a local bank account, it is advisable to bring cash to secure the property, as it is often on a first-come, first-served basis.
- Refundability: After the successful signing of the lease agreement, the booking fee can either be refunded to the tenant or applied toward the first month’s rent or security deposit. However, if the tenant decides not to proceed with the lease after securing the property, the booking fee is non-refundable. Therefore, it’s important to be fully committed to the property before paying the booking fee to the landlord.
- Timeline: After paying the booking fee, the tenant typically has a window of a few weeks to a month (to be agreed between the landlord and the tenant) to complete the rental process and sign the lease agreement. If the tenant fails to follow through, the property may be made available to others, and the booking fee will be retained by the landlord as compensation for the lost opportunity to find another tenant while the property was taken off the market.
Things to Watch Out For:
There are no requirements for real estate agents to be licensed in Thailand, and there have been many reported cases where tenants pay the booking fee to an agent, only to find the agent has disappeared and kept the fee for themselves. In these situations, the property will not be secured, as the landlord never receives the booking fee. As such, it’s crucial to ensure that you are working with reputable real estate agents to avoid these nightmare scenarios!
