Mr. Suwaphan Tanyuwatthana, Minister attached to the Prime Minister's Office, revealed after chairing a meeting of the Consumer Protection Board (CPB) on December 27, 2017, that the Office of the Consumer Protection Board (OCPB) is in the process of preparing to issue a notification regarding contracts, stating that businesses renting buildings for residential purposes will be classified as controlled contract businesses. This is to address complaints about high water and electricity charges imposed by dormitory operators.

         This issue needs to be managed to ensure fairness in the use of dormitory rental services, as it affects various groups of people, including students, workers, and families. The details of the measures will focus on setting prices for water and electricity, conditions for collecting deposits and advance rent, and creating documentation for inspecting rental rooms. This will utilize data from complaints received by the OCPB, and the conditions and details will be clearly defined in the contracts in accordance with the notification regarding contracts.

         The key points of this notification will require service providers to display details about the rental, such as writing the names and addresses of both the landlord and tenant, specifying the rental period, the properties and equipment being rented, various service charges including water, electricity, furniture, equipment or electrical appliances, telephone charges, as well as payment methods. Additionally, the conditions for collecting rent and various services must be clearly defined. Failure to comply will result in penalties, including imprisonment for up to 1 year, fines of up to 100,000 baht, or both.

         The notification will set guidelines that dormitory operators must follow, such as water and electricity meter charges, which must not exceed the rates set by the electricity and water authorities by more than 20%. They are prohibited from charging damage deposits exceeding 50% of the rental rate and from charging renewal fees from existing tenants. Additionally, the security deposit must not exceed 1 month’s rent. The committee has conducted sufficient studies and will issue the notification soon, the Minister attached to the Prime Minister's Office stated.

         Mr. Pikanet Tapuang, Deputy Secretary-General of the OCPB, stated that the announcement will be made in February 2018 and will take effect 90 days thereafter, around May. Business operators must terminate all existing contracts with tenants and have them sign new contracts under the new regulations set forth in the law.

Thank you for the information from    www.posttoday.com