Part of the Warehouse 101 Series for foreign buyers.
Signing a warehouse lease in Thailand as a foreign company requires attention to details that don’t exist in Western lease agreements. This checklist covers everything your legal team should review before committing.
Before You Sign — Key Thai Lease Law Facts
- Maximum unregistered lease term: 3 years. A lease over 3 years must be registered at the Land Department to be legally enforceable for the full term. Without registration, only the first 3 years are protected.
- Lease registration cost: 1% of total lease value. Paid at Land Department.
- Thai contract governs: Contracts in Thailand are subject to Thai law unless otherwise specified and agreed — though Thai courts will often apply local law regardless of choice-of-law clauses.
- Foreigners cannot own land in Thailand. Leasehold only — up to 30 years standard, 50 years in EEC for qualifying projects.
Lease Checklist — 20 Points to Verify
Parties and Property
- ☐ Landlord identity confirmed — Chanote (title deed) matches
- ☐ Company name, registration number and authorised signatory correct
- ☐ Exact address and GPS coordinates of leased premises defined
- ☐ Floor plan attached and signed as exhibit
Financials
- ☐ Monthly rent amount in THB — confirm if USD-linked (rare but possible)
- ☐ Rent escalation — maximum annual increase % specified
- ☐ Deposit amount (standard: 2 months) — refund conditions clear
- ☐ Advance rent (standard: 1 month) — applied to which months?
- ☐ Common fees — none? Or what is included and at what rate?
- ☐ Utility arrangements — who pays electricity, water? Direct billing or sub-metered?
- ☐ Withholding tax obligations (5% on commercial property rent)
Term and Renewal
- ☐ Start date and end date confirmed
- ☐ Renewal option — automatic or by notice? How much notice required?
- ☐ Early termination clause — penalty? Notice period?
- ☐ Lease registered at Land Department if > 3 years
Operations and Compliance
- ☐ Permitted use clearly stated — “warehouse and storage” or “light manufacturing” etc.
- ☐ Ror Ngor 4 (factory licence) — confirmed eligible at this location
- ☐ Sub-letting — permitted or prohibited?
- ☐ Fit-out rights — what alterations are allowed? Who owns improvements at lease end?
- ☐ Signage rights — exterior signage in English/Chinese/Japanese permitted?
Insurance and Liability
- ☐ Landlord insurance covers structure; tenant insures contents and liability
- ☐ Fire, flood and natural disaster liability allocation clear
- ☐ Tenant indemnity limits reasonable
Red Flags in Thai Warehouse Leases
- 🚩 No Chanote title deed — the landlord cannot confirm ownership of land
- 🚩 Ambiguous deposit refund terms — deposit should be refunded within 30 days of handover, subject to condition inspection
- 🚩 Unlimited rent escalation — cap annual increases at CPI or a fixed %
- 🚩 Vague permitted use — “general commercial” may not cover your specific activities; get “warehouse, storage and light manufacturing” in writing
- 🚩 Landlord-only termination rights — ensure you have equivalent early exit with reasonable notice
KT Thai Property — Our Lease Terms (Standard)
| Minimum term | 1 year |
| Deposit | 2 months |
| Advance | 1 month |
| Common fees | None |
| Permitted use | Warehouse, storage, logistics, light manufacturing |
| BOI support letter | Available on request |
| Ror Ngor 4 eligibility | Confirmed |
| Language | Thai + English bilingual lease available |
📞 081-147-8118 | 📧 info@ktthai.com | Line: @natree
We recommend all foreign tenants have their lease reviewed by a Thai lawyer before signing. We’re happy to work with your legal team — we provide full transparency on all lease terms.