Leases and premises

Why the lease makes or breaks a Thailand bar purchase: remaining term, renewal reality, transfer/assignment rights, rent terms, the landlord relationship and the 30-year rule.

The document your whole investment rests on

Since you're usually buying a leasehold (what you buy), the lease is the asset. A brilliant bar on a weak lease is a countdown timer on your money. Read it — properly, translated, with a lawyer — before anything else.

What to scrutinise

• Remaining term: how many years are actually left? Buying a business with two years of lease left is buying two years of business;
• Registered vs unregistered: Thai leases over three years should be registered at the Land Office to be fully enforceable for their term; leases can run up to 30 years registered. Understand what you actually hold;
• Renewal terms: a “renewal option” is a contractual promise, not an automatic right — its real enforceability and the rent-review terms at renewal are critical (and often where value evaporates);
• Assignment/transfer: does the lease even permit transfer to you, and on what terms? The seller may not have the right to sell you what they're selling;
• Rent & escalation: current rent, increase schedule, deposits, and what's included;
• The landlord: you're entering a multi-year relationship — who they are, their reputation, and whether they're the actual owner all matter enormously.

The classic lease traps

• Buying goodwill on a short or unrenewable lease — you rebuild the crowd, the landlord declines renewal or triples the rent, keeps your fit-out;
• Verbal “don't worry, he'll renew” assurances — worthless; if it's not in writing and enforceable, it doesn't exist;
• Unregistered long leases that don't survive a change of landlord. Get it registered and get it checked (due diligence).