How much deposit can a landlord take, and does advance rent count towards it?
It does count. The Contract Committee Announcement of B.E. 2568 provides that advance rent and the security deposit combined must not exceed three months of the monthly rent, and where rent is charged annually, not more than one year. But that ceiling applies only to a lessor who is a controlled business operator, which now means anyone letting three or more residential units.
That second sentence is where most of the confusion lives, and it is why some tenants are asked for more without anyone breaking the law.
The three month ceiling is the total, not three months of each
Three months is the ceiling on the two amounts added together, not on each separately. Take a rent of 15,000 baht a month.
| What the lessor asks for | Total months | Within the ceiling? |
|---|---|---|
| One month advance rent plus two months deposit | 3 months, 45,000 baht | Exactly at the ceiling |
| One month advance rent plus one month deposit | 2 months, 30,000 baht | Within it |
| Two months advance rent plus two months deposit | 4 months, 60,000 baht | Over the ceiling |
| Three months advance rent plus three months deposit | 6 months, 90,000 baht | Double the ceiling |
Rows three and four appear regularly in online listings, and plenty of people pay them believing that is simply how the market works.
Where rent is charged on an annual basis, the announcement allows the combined amount to reach one year, which is a separate case from ordinary monthly letting.
Who the ceiling binds, and who it does not
The announcement controls the contracts of business operators. It does not regulate every letting between private individuals. The current threshold is anyone with three or more residential units to let, lowered from the previous five.
| The lessor | Covered? | Effect on the first payment |
|---|---|---|
| Owner of an apartment building, dormitory or several condominium units | Covered | Cannot ask for more than three months combined |
| Owner letting three or more units, even in different projects | Covered | Cannot ask for more than three months combined |
| Owner letting a single condominium unit | Not covered | The announcement's ceiling does not bind. It is a matter of agreement |
| Owner letting one house | Not covered | The announcement's ceiling does not bind. It is a matter of agreement |
Rows three and four do not mean a lessor can demand anything at all. General law and ordinary negotiation still apply. They mean you cannot cite this announcement to say three months is the limit.
In practice a tenant can simply ask how many units the lessor lets, because the answer changes the whole set of rights that attaches to the contract, not only the first payment.
Deposit and advance rent are different money with different jobs
| Security deposit | Advance rent | |
|---|---|---|
| What it is for | Securing damage and any outstanding debts of the tenant | Rent paid before its period falls due |
| At the end of the lease | Returned, less any deductible damage | Applied to the agreed rental period. It is not money that comes back |
| Can it cover the final month's rent? | Not unless the lessor agrees | Yes, according to what the contract said from the start |
The misunderstanding that causes most move-out arguments is a tenant not paying the final month and telling the lessor to take it from the deposit. As a matter of principle that does not work without prior agreement, because the two amounts do different jobs.
On timing, the deposit is returned once the lease ends and the unit is handed back, and where the lessor needs to inspect for damage, within seven business days. The full announcement is covered in the 2568 rental contract control law.
What happens if the contract exceeds the ceiling
- A clause conflicting with the announcement has no effect, even where the tenant signed it. Signing does not revive a term that conflicts.
- The excess can be reclaimed, starting with a written demand sent by registered post with return receipt.
- A complaint can be made to the Office of the Consumer Protection Board on 1166, which costs nothing.
- It can be brought as a consumer case, where the consumer is exempt from court fees under section 18 of the Consumer Case Procedure Act B.E. 2551.
The full procedure for reclaiming a deposit, including suing without paying a court fee, is in when the landlord will not return your deposit.
Checklist before transferring the first payment
- Ask how many units the lessor lets, because the answer decides whether this announcement applies to your contract at all.
- Have the contract separate them clearly: which amount is the deposit, which is advance rent, how much each is, and how many months that represents.
- Get a receipt for every payment stating what it is for, rather than a bare transfer slip.
- Photograph the condition of the unit on move-in day from every angle, with dates, because that is the only evidence that settles a damage argument on the way out.
- Read the clause on deductions: what can be deducted, and whether at actual cost or a flat figure.
- Do not pay a holding fee before seeing the full contract, because once the money moves the negotiating power changes sides.
If you are looking for somewhere to rent, see the properties to let, and if you are a landlord about to let a unit, see the letting service.
Frequently asked questions
How many months of deposit can be taken?
Advance rent and deposit combined must not exceed three months of the monthly rent under the Contract Committee Announcement of B.E. 2568, for lessors who are controlled business operators.
Does the three month ceiling include advance rent?
Yes. It is a ceiling on the two amounts added together, not three months of each. One month advance plus two months deposit reaches it exactly.
Which lessors is the ceiling not binding on?
Those letting fewer than three residential units, such as an owner letting a single condominium unit, who is not a business operator under this announcement.
How many units triggers it?
Three or more, lowered from the previous five, and they count even where the units are in different projects.
What applies to a lease charged annually?
The announcement allows advance rent and deposit combined to reach one year, which is a separate case from ordinary monthly letting.
Can the deposit cover the last month's rent?
As a matter of principle not, unless agreed, because the deposit secures damage and outstanding debts while advance rent is what gets applied to rent.
What if I already signed a contract that exceeds the ceiling?
A clause conflicting with the announcement has no effect even after signing. The excess can be reclaimed by written demand, a complaint to the Consumer Protection Board on 1166, or a consumer case.
How long does the lessor have to return the deposit?
Once the lease ends and the unit is handed back, and where damage has to be inspected, within seven business days.
Key takeaways
- Advance rent and deposit combined must not exceed three months under the Contract Committee Announcement of B.E. 2568.
- It is a ceiling on the total, not three months of each.
- Where rent is charged annually, the combined amount may reach one year.
- The ceiling binds lessors with three or more units to let, lowered from five.
- An owner letting a single unit is not covered, so the announcement cannot be cited as a limit against them.
- Deposit and advance rent do different jobs, and the deposit generally cannot cover the final month's rent.
- A clause conflicting with the announcement has no effect even after signing, and the excess can be reclaimed.