Authorities are investigating claims that Chinese nationals have been illegally renting out their condominiums in violation of the Hotel Act, Interior Minister Anutin Charnvirakul said.
He said on Wednesday the Department of Provincial Administration is looking into claims that Chinese nationals bought condo units and rented them out to other foreigners, particularly in areas along Sukhumvit Road.
"Those who rent out hotel rooms or condo units must have licences and act in line with the Interior Ministry's regulations," he said.
He also insisted the foreign ownership quota for condos remains at no more than 49%.
Mr Anutin referred to an instruction from former prime minister Srettha Thavisin for the Interior Ministry to raise the foreign ownership quota in condos from 49% to no more than 75%, which he said is a "matter that is under study".
The issue was recently revealed by the Drama Addict Facebook page, which said that Chinese investors bought condos and rented them out to other foreigners. They put keycards and keys in boxes and lock boxes, telling their customers a code to open the lockbox and get the keycards to access the condo.
When their customers check out, they leave the keycards or keys in the rooms, according to the page.
The matter came to light when a box containing keys was found near a somtam outlet. When police were alerted and arrived at the scene, they found a foreign tourist had got the keys to access a condo, so police took action against the owner of the condo unit, Drama Addict said.
Sources said several condos are located on Soi Sukhumvit 42 and are rented out short-term via the Airbnb platform. There have also been noise complaints about those renting the condos disturbing other residents.
Such rentals violated the Hotel Act, sources said. Under the law, those who do not have licences to operate hotels and rent out rooms daily are liable to a fine of up to 20,000 baht, plus a fine of 10,000 baht per day, until they stop such illegal actions.
Residential rules at most condos also prohibit residents from renting out their units daily as it will disrupt others' privacy and pose safety risks.
Sources also said that a similar incident also occurred on Soi Sukhumvit 48/2 in Klong Toey district, where a number of boxes containing condo keycards were placed in two large lockboxes near a motorcycle repair shop about two months ago, and foreign tourists showed up to take the keycards.
The motorcycle repair shop owner, who asked not to be named, said he was approached by a man who asked to install the lockboxes near his shop and paid him 10,000 baht per month in return. He said many foreigners had since shown up to take the keycards almost every day. He added that he did not know this was illegal and was ready to cooperate with authorities investigating the case.
Best Wongpairojkul, a deputy spokesman for the Thai Sang Thai Party, called on the government, the Interior Ministry in particular, and the Immigration Bureau to deal with the problem of illegal condo rentals, saying such practices allow criminals access to properties and put residents at risk.
These actions also interfere with the management of condos for the sake of their own benefit, Mr Best said. "Inaction on the part of the government could lead to suspicions about a lack of transparency, and the government could be deemed to favour foreign investors, which could affect the country's economy and security," he said.
Rangsiman Rome, a list MP of the opposition People's Party, also said he has received complaints about illegal condo rentals. Mr Rangsiman said that it has been found that, in some cases, 80% of condo units are owned by Chinese nationals. He added that the government must work with condo developers to find ways to address the problem immediately.
