Bangkok is a truly international city, where working professionals from different nationalities, backgrounds and professions converge and mix. This diversity makes the city a truly cosmopolitan melting pot and it is no surprise why Bangkok is easily one of the most popular destinations in South East Asia.

However a fact of the city is that its residents are extremely transient with people arriving and leaving all the time. Life circumstances often change and the reasons can be diverse from personal to professional.

An interesting phenomenon that has started to appear on social media outlets such as Facebook is the rise of “Lease Takeover” Posts.

So the big question, what is this “Lease Takeover” about?

Simply, lease periods in Bangkok tend to range from a minimum of 6-12 Months Periods at a minimum. This means that if a Lessee (Renter) was to end his contract early he would automatically forfeit his security deposit (Equivalent to 2 Months of Rent).

However some tenants tend to try and find an arrangement with their respective Landlords. That usually goes along the lines of… if they can find a “replacement tenant” to complete their Lease, the landlord will refund their Deposit.

As a renter should you consider a Lease Takeover?

It is really important to note that this is non-standard and most Rental Agreements will not have a lease takeover clause. Lease Takeovers are at the discretion of the Landlord and unfortunately most Landlords tend to take a negative view on these arrangements. If you are currently renting and need to consider breaking your Lease it is best to get permission and negotiate with the landlord. Not disclosing your intention to do a Lease Takeover can be viewed as subletting, which could get you into trouble (Resulting in the loss of your Security Deposit).

When negotiating/ discussing with your landlord it is important to discuss all the details of the arrangement such as:

– Would your landlord allow a “replacement” tenant to take over the remaining amount of time left in the lease? 
Or is the Landlord expecting another full lease term?

– Would the Landlord refund the deposit in full?

– Who will prepare the takeover Paperwork?

What if you are considering taking over someone’s lease?

The positive of lease takeovers is you can generally get access to a shorter lease period; this is ideal if you are here for a period of less than 6 Months. Another possible advantage is the unit’s rental price, as it may be cheaper if it was negotiated/agreed several months or years ago.

However, there are numerous pitfalls and potential issues that might arise; it is therefore important to do some due diligence before simply handing over your hard earned money notably:

– In most cases you do not know the current lessee, so it is important to verify that he has the Landlord’s permission. In the worst case scenario the renter does not and he is looking for an easy way out. This can be aggravated by the fact that individuals looking for someone to take over their lease, usually need to leave the country or city in a short period of time.

– Ensure a new Lease Agreement and Inventory List is drafted to ensure you are given full-rights as the new official Lessee. It is important to get a certified copy of the Landlord’s ID/Passport.

– Ensure you inspect the property upon check-out of the last tenant and ensure all utility bills have been cleared. As there is a possibility of inheriting unwanted costs from the previous occupant.

Provided these 3 factors are thoroughly guaranteed, Lease Takeovers can be smooth affairs.

It is important to note, that the Editorial Team of Fresh Property is covering this subject because it is a growing phenomenon. The expanding adoption of social media and apps such as Facebook and Line, facilitate these exchanges making them more common and straightforward.

However as a Bangkok Property Agency we tend to shy away from recommending this as a solution for clients unsure about their work or personal status. Most Landlords frown on the idea of allowing their tenant to find a replacement and tend to refuse lease takeover arrangements. A more practical and standard arrangement, can be found in the form of a “Diplomatic Clause or Break Clause”; this clause if negotiated correctly, could allow the lessee to have a reduced Lease term!

That is why it is important to engage the services of a reliable Property Agency!

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