Landlords bemoan ‘impractical’ new property law

A group of apartment owners lodged a petition at Government House yesterday arguing that a new regulation governing property rentals is hurting their businesses.

The move comes after the group asked the Administrative Court on May 11 to repeal the law as the opinions of all stakeholders were not sought before it was formed, which they claimed was a violation of the charter.

The group accused the Office of the Consumer Protection Board (OCPB) of only inviting 120 property owners to the hearing whereas their total number exceeds 10,000.

The regulation was announced in the Royal Gazette on Feb 16 and became active on May 1 but property owners say it has made it significantly harder for them to deal with troublesome tenants.

The law applies to owners of condos and houses who rent more than five rooms to individual tenants. It does not cover dormitories or hotels.

It states that owners are prohibited from asking for more than a month’s rent as a deposit to cover damage.

The owner is also banned from charging electricity fees or water charges in excess of those levied by state utilities.

Meanwhile, tenants are allowed to terminate the lease agreement before the contract expires provided they give at least one month’s notice.

Owners are also prevented from confiscating or moving the tenant’s personal belongings even if they have not paid their rent or related service fees.

Property owner Rawiroj Ampolsathien said at a separate seminar that most of those who fall subject to this law should make a new lease contract and wait for the Administrative Court to rule definitively on the matter.

“We agree there must be a regulation to govern the property subleasing business. But we do not feel this law is practical. Worse, it violates the rights of property’s owners,” he said.