Regulatory Update for Residential Lease Business

The residential lease business has long been recognized as one of the business sectors subject to regulatory oversight under the Consumer Protection Act B.E. 2522 (1979), as amended (the “CPA”).
The legislative intent underlying such oversight is to safeguard tenants against unfair contractual terms and practices that may otherwise place them at a disadvantage vis-à-vis lessors. In furtherance of this objective, the Contract Committee—being a specialized body under the Office of the Consumer Protection Board (the “OCPB”) tasked with overseeing consumer contract matters—issued the Announcement of the Contract Committee Re: Designating Residential Lease as a Contract-Controlled Business, B.E. 2562 (2019) (the “2019 Regulation”), thereby prescribing specific contractual requirements to ensure fair treatment and consumer protection within the residential leasing sector.

Recognizing the need to adapt the regulatory framework to evolving market conditions—particularly the emergence and rapid expansion of electronic platforms facilitating residential leasing—the Contract Committee has subsequently revised and modernized these requirements. In this regard, not only has the regulation specifically addressed residential leasing conducted through electronic channels, but it has also introduced a clearer distinction between short-term and long-term leasing businesses. Accordingly, the 2019 Regulation was repealed and replaced by the Announcement of the Contract Committee Re: Designating Residential Lease as a Contract-Controlled Business, B.E. 2568 (2025) (the “2025 Regulation”). This updated regulation reflects the Committee’s efforts to strike a balance between consumer protection and the realities of contemporary business practices in the residential leasing market.

Key Differences of 2019 Regulation and 2025 Regulation

Certain provisions have been newly implemented under the 2025 Regulation, while others remain unchanged from the 2019 Regulation. The key details are summarized as follows:

TopicFormer Requirements under 2019 RegulationCurrent Requirement under 2025 Regulation
Mandatory Standard Form of Lease AgreementNot applicable.

The lease agreement must include the key terms and conditions prescribed under the 2019 Regulation. However, the 2019 Regulation did not prescribe a mandatory standard form for such agreements.
Applicable.

Under the 2025 Regulation, the lease agreement must include the key terms and conditions as set out in the standard form of lease agreement attached to the 2025 Regulation.
Scope of ApplicationApplies to a lessor operating residential rental business with 5 or more units to individual lessees.Narrower coverage, which applying to a lessor operating residential rental business1 with 3 or more units to individual lessees.
Amount of Advance Rental & Security DepositCapped at no more than
3 months’ rental fee.
(i) For the short-term lease (not exceeding 3 years), capped at no more than 3 months’ rental fee.

(ii) For the long-term lease (more than 3 years but not exceeding 30 years or for the lifetime of the lessor), capped at no more than 3 months’ rental fee if the rental fee is based on monthly basis; and capped at no more than 1 year’s rental fee if the rental fee is based on annual basis.
Refund of Security DepositThe lessor must refund the security deposit to the tenant immediately upon termination of the lease agreement, except where the lessor intends to inspect for damages for which the tenant is responsible.
If no such damages are found, the lessor shall refund the security deposit within 7 days from the termination of the lease agreement and upon repossession of the premises by the lessor.
Similar to the 2019 Regulation, but with additional provisions regarding the deduction of the security deposit as follows:
In case there is damage, the lessor is entitled to retain the security deposit only to cover damages not resulting from normal wear and tear or force majeure. Any remaining security deposit after deduction shall be refunded to the tenant within 14 days from the termination of the lease agreement and upon repossession of the premises by the lessor.
Repair and Maintenance of Leased PremiseNot applicable.(i) The tenant shall be responsible for minor repairs and maintenance of the leased premises in a prudent and reasonable manner.

(ii) The lessor shall be responsible for repairs of the building, assets, equipment and appliances, except for the minor repair and maintenance responsible by the tenant pursuant to (i) above.
Forfeiture of Advance Rental & Security DepositLessor is not entitled to forfeit any advance rental or security deposit, unless due to tenant’s fault.Remain the same as per the 2019 Regulation.
Right of Tenant to Terminate the LeaseThe tenant is entitled to early terminate the lease agreement provided that the tenant has occupied the premises for at least half of the lease term and is not in default of any rental payments under the lease agreement.Remain the same as per the 2019 Regulation.
Rent and Service FeesLessor is not entitled to change rental rates or service fees during the lease term.Remain the same as per the 2019 Regulation.
Utility ChargesLessor is not entitled to charge electricity or water fees higher than the rates charged by the service provider.Remain the same as per the 2019 Regulation.
Non-Compliance and Penalties
Invalidity of non-compliant clauses:

Any provision in a lease agreement that is contrary to the required provision as stipulated under the 2025 Regulation will be deemed void and no longer exist2, and those relevant required provisions under the 2025 Regulation would be automatically applied3.

Criminal liability:

The penalty for the lessor who fails to deliver a lease agreement in compliance with the 2025 Regulation to the tenant shall then be subject to a penalty of an imprisonment of up to 1 year, or a fine of up to THB 200,000, or both4, for each non-compliant agreement. In case the lessor is a juristic person, its director, manager, or person responsible for operations may also be subject to such above penalties5. However, the penalty may be settled through payment of a fine designated by the competent authority6.

Tenant Remedies

In the event that a lease agreement is not in compliance with the 2025 Regulation, a tenant may submit a complaint to the OCPB. The OCPB shall have the authority to mediate, negotiate, or initiate legal proceedings against the business operator in accordance with its established rules and procedures, to claim damages arising from such non-compliance of the 2025 Regulation against such business operator7.

Grandfather Provision

In addition, the 2025 Regulation applies to lease agreements executed on or after the effective date of the 2025 Regulation (which is 4 September 2025) whereby the lease agreements entered into prior to such date shall continue to be governed by the 2019 Regulation, as applicable.

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1Residential rental business, according to the Clause 4 of the 2019 Regulation and 2025 Regulation, include the rental business of rooms, houses, condominium units, apartments, or other residential premises arranged for rental but excluding dormitories under the Dormitories Act B.E. 2558 (2015) (as amended) and hotels under the Hotel Act B.E. 2547 (2004) (as amended).
2Section 35 Quarter of the CPA
3Section 35 Tri of the CPA
4Section 57 of the CPA
5Section 59 of the CPA
6Section 62 of the CPA
7Section 10 and Section 39 of the CPA