Thailand cracking down on illegal daily condo rentals
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Thailand cracking down on illegal daily condo rentals

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Thailand cracking down on illegal daily condo rentals

Thai authorities have repeated their warning that offering daily condominium rental services is illegal, and any individuals involved will face legal action.

The House Committee on Administration, chaired by Korrawee Prissananantakul, addressed a complaint regarding unauthorised daily rentals during a meeting on Wednesday. Representatives from state agencies participated to provide clarifications.

Mr Korrawee said renting condominium units on a daily basis is illegal. Additionally, concerns have been raised over foreigners owning condominium units beyond the legal limit. He confirmed that legal action will be taken against violators.

Voravut Laipoonsawat, deputy director-general of the Department of Lands, said that under the Condominium Act, foreigners are not permitted to own more than 49% of the total area of a condominium project — rather than 49% of the total number of units. This regulation aims to limit foreign voting rights within condominium juristic entities.

Mr Voravut also noted that legal loopholes allow foreigners to purchase condominium units through Thai nominees without ever visiting Thailand. Furthermore, a single foreigner may acquire multiple units, as there is no restriction on the number of units an individual can own — provided that total foreign ownership does not exceed 49% of the condominium’s total area.

Rattawit Jitsujaritwong, a legal expert with the Department of Provincial Administration, said renting out condominium units on a daily basis, similar to hotel operations, is prohibited. Since the hotel business affects both the economy and national security, a registration system is needed.

If a Thai or forieign condominium unit owner rents out rooms like a hotel without the proper authorisation, they will be guilty of violating the law. Additionally, if a condominium’s juristic person is aware of such activities, they may also face legal consequences.

One challenge is that many of these illegal rentals are conducted through Airbnb and other online platforms, with many owners residing outside of Thailand, making enforcement difficult.

In the short term, authorities plan to enforce the Hotel Act more strictly through joint operations involving the Department of Provincial Administration, district offices, police and the Immigration Bureau. They will also ask online platforms to remove advertisements for daily rentals and notify condominium juristic persons to inform residents that offering daily rental services to tourists is illegal.

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