What are the Rules Governing Short-Term Rentals in Thailand?

It is something that has been reported a lot recently, but there is still some considerable confusion regarding the renting of condominium units on a short-term basis. A lot of this confusion is caused by companies such as Airbnb openly advertising short-term rentals in condos. To be clear, when we are referring to short-term rentals, we mean leases that are less than 30 days in duration.

What is the problem with short-term leases?

The main reason is quite simple, Thai law does not permit the rental of any condo units for less than 30 days if the property doesn’t have a hotel license. Many condos are now getting these licenses to be compliant. Also, many condos are part-owned and managed by hoteliers, but this is certainly not the case with the vast majority of properties.

Is the ruling new?

No, the rules are nothing new; they are now just being more tightly enforced after complaints from the hoteliers. It is quite reasonable as the hotels have all the correct licences and more importantly, from a guest’s point of view, they have all the necessary insurance for short-term stays. In the vast majority of cases, anyone staying in a condo without a hotel license for less than 30-days will not be covered by insurance.

In Unixx next to Walking Street, there are many nice apartments for rent from 2 months onward

Is the law being implemented?

Initially, most condos were turning a blind eye and ignoring the laws, but there have been some high profile cases such as an issue in Hua Hin and a court ruling declaring Airbnb illegal in Thailand that has forced the issue. Although some condos are more complaint than others, all will likely be forced to take action in the next twelve months.

The more diligent condos are making efforts to try and dissuade people from using their condos as hotels. Owners and juristic managers have put up signs such as “This is not a hotel” and “Short-term rentals are illegal” with other keen to point out that they don’t have a hotel license. The main target appears to be co-owners who are viewed as abusing the system and providing these types of rental.

Are the condos free from liability if they warn owners?

Sadly, this is a very grey area with juristic[PL1]  managers and co-owners believing that they have fulfilled their responsibilities by warning owners and putting up signs. However, many believe that more should be done by committees and managers to stop the practice, so it may be advisable to seek professional legal advice on this topic.

It is recommended that those providing these types of rental seek legal advice too to establish what legal and practical options are available.

Start as you mean to go on

Many new condos are applying for hotel licences from the start, which removes any issues and makes short-term rentals in their condos perfectly legal. It is by far the best option, but it is not always practical in older condos. The reality is that things will become a lot clearer in the next year, but by this time, several more issues are likely to have been raised.

Well-appointed 2 bedroom condo for rent in the centre of Pattaya