Thailand Late Fee Laws: Rules on Penalties for Overdue Rent

Under the Civil and Commercial Code (effective 1 April 1925), Thailand does not impose a general statutory cap on late fees for private residential leases, though interest is capped at 15% per annum. However, for "Contract-Controlled Businesses" (landlords with 3 or more units), the OCPB Notification B.E. 2568 (effective September 4, 2025) imposes strict procedural requirements to protect consumers.

Legal Framework

Contractual Late Fee Provisions

General Principles

Since there is no specific statute for private leases, late fees must be specified in the lease agreement to be enforceable. If the lease does not address late fees, the landlord cannot charge them.

Common Market Rates

• Daily penalty of 0.1–1% of monthly rent per day late
• Flat penalty of 5–10% of monthly rent
• These rates are not regulated but are subject to the 15% per annum interest cap.

Legal Limitations

Under CCC §383, courts have the power to reduce penalties they consider excessive. Therefore, contractual late fees may not be enforced in full if a court determines they are disproportionate to the landlord's actual loss.

Requirements for Business Landlords (3+ Units)

Landlords who lease three or more residential units (including individual rooms, condominiums, or houses) are considered Contract-Controlled Businesses and must follow the OCPB Notification B.E. 2568:

• Late Fee Cap: Late fees are subject to the 15% per annum interest cap under the Prohibition of Excessive Interest Rate Act B.E. 2560. Any additional fees must be reasonable and are subject to court reduction if deemed disproportionate (CCC §383).
• Advance Invoicing: Landlords must:
  • Send invoices for rent and utilities
  • Deliver invoices at least 3 days before the payment due date
  • Clearly itemize the amounts owed

Process for Non-Payment

1. Send a written demand for overdue rent
2. Allow a cure period: At least 30 days for business landlords (3+ units) under OCPB Notification B.E. 2568, or 15 days for private landlords (<3 units) under CCC Section 560.
3. If unpaid, terminate the lease
4. File a court action if the tenant refuses to vacate

See our Eviction ProcessPreview unavailable guide for details.

Default Interest

Under the CCC Section 224 (as amended by the Emergency Decree B.E. 2564), if no interest rate is agreed upon in the contract, the default rate for late payment is 5% per annum (comprising a 3% base rate plus a 2% surcharge). Contracts may specify a higher rate, but it must not exceed 15% per annum under the Prohibition of Excessive Interest Rate Act B.E. 2560.

Best Practices for Landlords

1. Specify late fees clearly in the lease — Include rate, calculation method, and grace period
2. Set penalties at a reasonable level — Excessive fees risk court reduction
3. Send invoices on time — Especially if you are a business landlord (3-day requirement)
4. Keep payment records — Document all receipts and payments
5. Communicate with tenants — Reach out before imposing penalties
6. Include a grace period — 3–5 days is common practice

How Landager Helps

Landager helps landlords send automated invoices, track rent payment status, calculate late fees per contract terms, and alert you when payments are overdue.

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