If we had a pound for everytime we have been asked this question we would!, well probably not be writing thai latest blog.
Many of our customers looking at buying a business in Pattaya will be leaseholders and this raises a number of questions and some points of clarification regarding the omnipresent misleading comments and information on social media.
Let us clarify in this latest blog from Business Broker Consultants.
Business Lease Explained
A Business lease in Thailand is a form of contractual arrangement between the tenant (you) and the landlord for the use of the premises for business purposes.
There will be a legal contract that has to be checked by both parties' lawyers and then signed and normally witnessed at the lawyers office as this is a legal document.
You as the tenant have the right to use the premises in return for the agreed rent
Some of the basic elements in a lease agreement in will normally include:
A provision for conditions regarding renewal or non-renewal
The joint names of the parties of the agreement.
Identifies the specific premises to be leased (by street address)
The start date and the total duration of the agreement.
Make sure there are clear details of the security deposit and specified terms for its return.
A Termination clause is normal, even though you have solid long term plans, lives can change so it describes the process if the contract is cancelled or terminated early and both parties obligations.
In general along with the points above there may be other specific conditions in relation too, insurance, restrictions, maintenance etc
The Answer
So the answer to the question in our article title is Yes.
A Business lease in Thailand can be in a foreigners personal name with a maximum period of three years without having to register the lease at the land office. There can be a clause in the lease contract to extend it for a further three year period.
Before you sign a lease agreement in Thailand whether it be on a commercial shop unit or a residential condo or house, have it checked thoroughly before signing on the ‘dotted line’.
Business Broker Consultants specialise in writing, checking, translating and explaining lease contracts to clients. We offer our full range of services for all types of businesses in Pattaya and bars of all sizes.
Be assured when buying a business in Pattaya, we have got you covered.
The Wrap
Being offered a 12 months lease as a first option is fairly common in Thailand, but are not well received by tenants or BBC. Tenants should always push for a longer lease of at least a minimum of a 3 year rolling lease.
So contact us today and let us get to work on the search to find your dream Pattaya bar, agogo, gentlemans club or massage shop in Thailand
And make preparations to start enjoying the good life in the land of smiles.