Is it legal to Airbnb Condos in Thailand?

With its global presence in a total 65,000+ Cities, 191+ Countries and a total of 3+ Million Vacation Rentals, Airbnb is a phenomenon taking Thailand by storm!

The simplicity of the turnkey service is proving incredibly attractive for condo landlords looking to generate extra-income. However Airbnb’s disruptive business model has placed it in direct opposition with several stakeholders notably the Thai Government and the Thai Hotel Association (THA). Both entities fear that Airbnb may potentially cannibalize the Thai Hospitality Industry and are seeking to have the online service completely banned.

Airbnb-Search-Bangkok2

A search on Airbnb for Bangkok, brings-up a variety of Vacation Rentals!

So is Airbnb legal in Thailand?

Vacation Rentals on Airbnb are currently operating in the grey area of the Thai Legal System.
They are neither legal nor completely illegal!

The current Thai Legal Framework is currently ill-suited to deal with Airbnb’s unique business model:

Hotel Act

Those opposed to Airbnb’s activities in Thailand, often cite infringements of the Hotel Act that state a “Hotel License” as a requirement to operating a business that provides temporary accommodation (Nightly rentals). However to complicate matters, the Hotel Act provides “Hotel License exemptions” for any business operation with no more than four rooms. This contradiction is the source of much debate!

Condominium Act

Interestingly, the Condominium Act states that no commercial activities are permitted in a condominium building (Except in the commercial areas specified). However the Condominium Act’s framework is undermined by the Thai Civil and Commercial Code that states that an owner of a property is entitled to its fruits provided it does not cause problems to other co-owners.

Fresh Property Final Comments

This confusing muddle of self-contradicting Legislation resembles a tangled bowl of spaghetti! This is the reason why Airbnb is still technically marketing vacation rentals in popular Thai destinations such as Bangkok, Phuket, Pattaya, Koh Samui and Chiang Mai.

While there is currently a gap between legislation and practical law enforcement, we recommend staying safely on the side of caution. While legislation remains unclear, Building Management and Co-owner Associations of certain condos are taking firm steps toward banning and shaming short-term rentals.

Quick Legal Disclaimer: This article is simply a brief evaluation Airbnb’s current status in Thailand and should not be treated as an opinion piece by the editors of Fresh or as legal advice.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Fresh Editorial

The Editorial Team is made up of Property Professionals with years of experience in the Bangkok Property Industry. Articles and reports are drafted using first-hand experience and local expertise!

The Team is always excited to hear from our readers via info@freshbangkok.com

Could PropTech Fix the Real Issues of Thailand’s Real Estate Industry?

Industry transforming technologies from Crypto, Blockchain, AI and Big Data are changing industries and disrupting the way we do business. Thailand, with its rapid internet penetration rate and high social media adoption is strategically placed socially, geographically and economically to benefit from these advances in technology! Despite this momentum, the Thai PropTech scene can often feel like the “unloved child”…Read More

5 Breathtaking Bangkok Riverside Residences

Following the grandiose and glitzy launch of “Icon Siam”, dubbed Bangkok’s most luxurious (…and expensive) mixed-use luxury mall; the Bangkok Riverside lifestyle has been propelled into the spotlight, attaining new levels of hype and appeal! Brimming with culture and history, the banks of the Chao Phraya has maintained its majestic and nostalgic retro-chic environment. Traditionally the riverside, attracted old-fashioned and…Read More

3 Economic Factors Disrupting Bangkok Property in 2019

New Year, new start! …Despite the celebratory optimism that usually accompanies the start of a new year, property investors will have to grapple with some new realities in 2019! Market conditions have shifted, especially when compared to last year early-2018; with headwinds and volatility in the horizon, smart money will need to tread carefully. Knowledge is power, especially in Bangkok’s…Read More