Utility Usage Deductions from an Apartment Deposit?

[Farang-Jono]

Hi all,

I signed up to do a teaching internship in Thailand. they help to arrange accommodation and you will pay the deposit and the rent each month. However in their info, they have written: "All monthly accommodations in Thailand require a deposit to cover any damages and the cost of electricity. When you check out at the end of your stay, your deposit will be returned to you minus any damages and minus the amount of water and electricity usage. Electricity is charged at 10 Baht per unit and participants using a moderate amount electricity can expect to spend 1,000 – 1,500 Baht per person (based on a shared room). There is also a 250 Baht cleaning fee that will be removed from the deposit to cover cleaning services.

Your deposit return will be greatest if you do not use your air conditioner and remember to turn off all electricity when not in use. You will be informed about your specific cost before you arrive in Thailand. You will need to pay the deposit when you check in to your accommodation on Monday. All participants are subject to a deposit."

When renting in Thailand, is it really commonplace to have utilities deducted from a deposit, or is this just some warped logic created by the internship company? I'll be ready to cancel immediately if this is not at all commonplace across Thailand. I also find it odd that they'll place you in an apartment with an air conditioner and then tell you not to use it. I understand and accept damages and cleaning, but for utilities seem to be a bit bizarre to me.

Edited April 15 by Farang-Jono

[Derek Dangleberries]

13 minutes ago, Farang-Jono said:

When renting in Thailand, is it really commonplace to have utilities deducted from a deposit, or is this just some warped logic created by the internship company?

I see nothing wrong with paying everything that they have listed at the time of checkout and would be happy for it to be deducted from the deposit with the remainder given back there and then cash in hand.

The problem arises from the rental facility not your agent nor the school (unless they are in cahoots of course) and they try to delay the deposit repayment on the spot knowing that you are itching to get on the silver bird ASAP.

Plan to move out from the long term accommodation 2 weeks before end of contract and stay in a local cheap hotel.

But everything depends on the length of your contract ...

[Derek Dangleberries]

26 minutes ago, Farang-Jono said:

I also find it odd that they'll place you in an apartment with an air conditioner and then tell you not to use it.

They are advising not telling you to be frugal with your utilities which includes Aircon... If you are sharing this may lead to some conflict of course ..

[Farang-Jono]

6 minutes ago, Derek Dangleberries said:

I see nothing wrong with paying everything that they have listed at the time of checkout and would be happy for it to be deducted from the deposit with the remainder given back there and then cash in hand.

The problem arises from the rental facility not your agent nor the school (unless they are in cahoots of course) and they try to delay the deposit repayment on the spot knowing that you are itching to get on the silver bird ASAP.

Plan to move out from the long term accommodation 2 weeks before end of contract and stay in a local cheap hotel.

But everything depends on the length of your contract ...

I'd imagine gas, electric and water is paid monthly to the utility company anyway. So how can the deposit be used to pay utilities that some pays monthly?

By the end of the lease, it's highly probable the utility costs outweigh the cost of the deposit over the months. can you explain how this is supposed to make sense?

[Painter]

That's always been the case in the condos I've rented. I've always rented through the juristic office in the complex.

Move in, pay months rent and a month's deposit.

On moving out, the condo management read the meters, and check condition of the condo. My deposit has always been returned, less the electricity (in my case last March was at 6.5b per unit) and water, and a cleanaing charge. Presumably if there was any damage we would argue over the cost 😀

I make sure the office know at least a week in advance of when I am leaving, and remind them regularly in the last week. 

During my stay I'm issued with a monthly government bill for electricity used, and pay that at a 7-11. This bill is given to me by the management office, but is an official government slip. Obviously if I'm moving out on the 20th, and the government bill doesn't come until the 28th, keeping money from my deposit means the management can pay the bill on my/the owners behalf when it arrives.

I'm happy for them to take the required amount from my deposit... means I don't have to have funds available on the last day of my trip

Edited April 15 by Painter

[Farang-Jono]

9 minutes ago, Painter said:

That's always been the case in the condos I've rented. I've always rented through the juristic office in the complex.

Move in, pay months rent and a month's deposit.

On moving out, the condo management read the meters, and check condition of the condo. My deposit has always been returned, less the electricity (in my case last March was at 6.5b per unit) and water, and a cleanaing charge. Presumably if there was any damage we would argue over the cost 😀

I make sure the office know at least a week in advance of when I am leaving, and remind them regularly in the last week. 

During my stay I'm issued with a monthly government bill for electricity used, and pay that at a 7-11. This bill is given to me by the management office, but is an official government slip. Obviously if I'm moving out on the 20th, and the government bill doesn't come until the 28th, keeping money from my deposit means the management can pay the bill on my/the owners behalf when it arrives.

I'm happy for them to take the required amount from my deposit... means I don't have to have funds available on the last day of my trip

Ah, I think I understand now. So if you move out before the utilities are due in the same month, the deposit is used to pay these utilities instead of you yourself paying them elsewhere. Is this correct?

[Smiler]

9 minutes ago, Farang-Jono said:

Ah, I think I understand now. So if you move out before the utilities are due in the same month, the deposit is used to pay these utilities instead of you yourself paying them elsewhere. Is this correct?

Yes that’s it, quite simple really.

The owners of the place you are renting clearly state you will be paying 10 baht per unit of electricity. So they don’t need to wait for the electric co to send a bill, they take a monthly reading of your meter and charge you accordingly. I am guessing on a monthly basis, but could even be weekly or at the end of a fixed term contract.

My girl pays (or rather I pay 👀) 4k a month for her room near her Uni in Bangkok. The electric averages out around 600, obviously this time of year  it will be considerably more.

It was a useful lesson in budgeting for her during her first year there. The electric was paid monthly by the way.

At the end of April we will be clearing the place because she has finished her degree. I paid a month in advance and a months deposit 3 years ago so I am hopeful of at least 3k of the deposit being returned as she will only have spent around 10 nights there in April.

[Farang-Jono]

14 minutes ago, Smiler said:

Yes that’s it, quite simple really.

The owners of the place you are renting clearly state you will be paying 10 baht per unit of electricity. So they don’t need to wait for the electric co to send a bill, they take a monthly reading of your meter and charge you accordingly. I am guessing on a monthly basis, but could even be weekly or at the end of a fixed term contract.

My girl pays (or rather I pay 👀) 4k a month for her room near her Uni in Bangkok. The electric averages out around 600, obviously this time of year  it will be considerably more.

It was a useful lesson in budgeting for her during her first year there. The electric was paid monthly by the way.

At the end of April we will be clearing the place because she has finished her degree. I paid a month in advance and a months deposit 3 years ago so I am hopeful of at least 3k of the deposit being returned as she will only have spent around 10 nights there in April.

I'm glad I understand it better now. The way the internship worded things above sounded like for a 12-month lease, they'd take 12months worth of electricity usage from you despite already paying it to the government in the first place. Though I have been given other red flags from them, so I may just get the refund and apply to a school myself.

[Painter]

49 minutes ago, Farang-Jono said:

Ah, I think I understand now. So if you move out before the utilities are due in the same month, the deposit is used to pay these utilities instead of you yourself paying them elsewhere. Is this correct?

Yes.

[Derek Dangleberries]

1 hour ago, Farang-Jono said:

I'd imagine gas, electric and water is paid monthly to the utility company anyway. So how can the deposit be used to pay utilities that some pays monthly?

By the end of the lease, it's highly probable the utility costs outweigh the cost of the deposit over the months. can you explain how this is supposed to make sense?

Ahhhh. I see the miscomprehensions now!!

It should say "the outstanding utilities" at the end of contract and it should also say that you pay rent and utilities each month not just rent.

You should clarify with them directly ASAP... You don't mention the subjects but if they are a TEFL agent then they are shockingly lacking in English skills!

There just seems to be too many holes in that contract to be able to help you out ..

Edited April 15 by Derek Dangleberries

[Farang-Jono]

4 minutes ago, Derek Dangleberries said:

Ahhhh. I see the miscomprehensions now!!

It should say "the outstanding utilities" at the end of contract and it should also say that you pay rent and utilities each month not just rent.

You should clarify with them directly ASAP... You don't mention the subjects but if they are a TEFL agent then they are shockingly lacking in English skills!

There just seems to be too many holes in that contract to be able to help you out ..

Since paying paying for the internship, I've been juggled across two other companies and then being told that the internship is either 3 months or 8 months – all their websites say the internship is 5 months. I only signed up with them as I could have had an easier time with the visa paperwork, airport transfers, accom assistance ect. But I think I'm better off doing on my own in conjunction with a school.

[CampariO]

Shared room? Accomodation is so cheap here, no need to share a room.

Electricity is charge at 10 Baht? Government rate is 4-5 Baht if you pay the bills directly, so they are profiting from it. Some appartment managers do this as well, but 6-8 Baht is what is usually asked. 10 Baht is a bit over the top.

[Smiler]

10 hours ago, CampariO said:

Shared room? Accomodation is so cheap here, no need to share a room.

Electricity is charge at 10 Baht? Government rate is 4-5 Baht if you pay the bills directly, so they are profiting from it. Some appartment managers do this as well, but 6-8 Baht is what is usually asked. 10 Baht is a bit over the top.

I may be completely wrong here (I often am 😏) but it’s my understanding that there are different rates per unit for commercial premises than private residences.

Whatever, 10 baht per unit is certainly on the high side IMHO.

Will check what my girl pays in a couple of weeks.

[Britboy]

On 4/15/2024 at 2:59 PM, CampariO said:

Shared room? Accomodation is so cheap here, no need to share a room.

Electricity is charge at 10 Baht? Government rate is 4-5 Baht if you pay the bills directly, so they are profiting from it. Some appartment managers do this as well, but 6-8 Baht is what is usually asked. 10 Baht is a bit over the top.

Just got my electric bill for March/April, I get the ticket direct from PEA, the local electric company, even though I rent and there's a management office. They agreed from day 1 (2 years ago) that I'll pay the electric and water directly.

Looking at my bill, if you just take the units used and the headline figure the government rate is 3.6729 per unit. Underneath that is a couple of other bits in Thai that I don't understand (probably standing monthly charge) and a 56 baht refund for something I again don't understand, but that total divided by the units used is 3.9527 per unit.

With the tax at 7%, if that's added then a unit cost worked out it's 4.2293 per unit.

Whichever calculation is used, at 10 you're paying over double the government rate, so definitely OTT.