Phuket condo owners warned 'holiday rentals' less than 30 days risks fines, jail time

[rooster59]

Phuket condo owners warned 'holiday rentals' less than 30 days risks fines, jail time

The Phuket News

Renting condos out for periods of less than 30 days, the prime length of stay for holidaymakers, may bring the owner a fine of up to B20,000 or even up to one year in jail.

PHUKET: The Phuket Provincial Land Office has issued a formal warning to owners, developers and managers of condominiums that renting out their properties on a daily basis is a breach of the Hotel Act that may incur a fine or even jail time.

The notice, issued to all 234 registered condo projects in Phuket – hence affecting all 26,071 legally registered condo units on the island – was signed and issued by by Phuket Land Office Acting Chief Wisith Chokchai on June 9.

The notice read:

To managers/developers of condominiums,

“Today, there is a lot of news about condominium developers/owners renting out rooms or buildings that they have ownership of to foreigners or tourists on a daily basis (daily rental) rate that generate income as if they were a hotel (under the Hotel Act 2004).

“This type of operation is causes a public nuisance for renters in the same complex and creates unsafe places for tourists, which may lead to loss of life and property. It is inacceptable to operate an illegal hotel. The penalty for this is up to one year in jail or a fine of up to B20,000, or both.”

Mr Wisith told The Phuket News this week, “We want to let developers and owners know that renting out condos on a daily basis is against the Hotel Act and that they must operate their condos in accordance with how their properties are registered in order to avoid legal action.

“This issue may not be easy to tackle because sometimes it is not the developer that provides daily rentals, but the individual condo owners. Regardless, it is for the condo managers and developers to remind owners about this law and tell them that if officials find out (about illegal renting of condos) the owners will face legal action,” he said.

The public warning follows Phuket Vice Governor Chokdee Amornwat on June 3 dispatching the Phuket Land Office a specific order to combat the problem of illegal condo rentals, Mr Wisith explained.

“We were ordered to enforce regulations regarding condominiums across Phuket – owned or operated by Thais and foreigners – and not allow any rentals on a daily basis because it is against the Hotel Act 2004,” he said.

“The order came from Ministry of Interior and the Phuket Provincial Office in an effort to tackle illegal hotels (sic) on the island,” he added.

In a report sent to the provincial office, Mr Wisith explained, “The Land Office is in charge of condo registration. Every condo built in Phuket must be registered as such with the Land Office.

“There are more than 200 condo units in the Phuket Town area that are registered with us which we have sent the notice out to. The Land Office in Thalang has also sent out notices to all the condo units registered their area,” he wrote.

“All developers and the management operators of condominium projects in Phuket Town in Kathu have been warned that renting out rooms on daily basis is considered operating as a hotel.”

Mr Wisith explained to The Phuket News that the problem lies in that if a property is registered with the Land Department as a condo, then it cannot be registered as a hotel.

“And a condo must be operated as a condo, which can be rented out for periods of 30 days or longer – but cannot be rented out on a daily basis,” he said.

Dr Kritsada Tonsakul, who heads the Phuket-based Southern Thailand chapter of the Thai Hotels Association, this week voiced his support for the crackdown.

“These places that rent out on a daily basis without a hotel registration are operating illegally and it is great that officials are starting tackling them now,” he told The Phuket News on Wednesday (June 29).

“If we strictly enforce the Hotel Act and rid the island of all illegal hotel rooms, it will benefit not only the legal hotel businesses, but also greatly benefit Thailand’s, and Phuket’s, tourism industry as well.”

Full story: http://www.thephuketnews.com/phuket-condo-owners-warned-holiday-rentals-less-than-30-days-risks-fines-jail-time-58095.php#OWsd14Kb2vcbE1JQ.97

-- Phuket News 2016-07-02

[gandalf12]

That is going to do the Condo market a lot of good. I assume the Thai's complained and are losing money.

Edited July 2, 2016 by gandalf12

[smedly]

always something new to amuse here in LOS, not renting, my friend stay for free, how on earth could such a rule even be enforced

[Psimbo]

As someone who is in a long term rental I support this. The residents where I live have to put up with transient people who having adopted the 'but I'm on holiday so it doesn't matter' mode show little consideration for others.

Drunks in the pool at 4 am are a pain in the backside- they can sleep in all day, we live 'normal lives. Screaming kids running around the pool all day can get on the nerves as well. One badly behaved child can hold an entire complex hostage

People initially bought the condos where I live on the premise that they would be for residents, not transients. Most have changed hands now, with those purchasing them as investment and income opportunities. This is what the Gov't is clamping down on and I see nothing wrong with it.

Some people will regard me as a misery guts for posting the above but hotels are there for a reason. This is my HOME not a holiday, why should I have it disrupted by people who would not behave the same way when they are HOME.

Its a factor people forget when they start bellyaching and all they can come up with 'well, if you don't like it...............'.

Edited July 2, 2016 by Psimbo

[LivinginKata]

As a long time owner/operator of home rentals, I support this new rule, if indeed it even enforced. We pay property taxes based on usage, those renting out their condos should pay the same taxes. Only a matter of time for these AirB&B folks to pay taxes.

[shirtless]

This rule will be selectively enforced, Hiso no problem Farang big problem.

[gandalf12]

So a friend want to hire it for 2 weeks not possible. Incredible but not surprising considering were we are.

Edited July 2, 2016 by gandalf12

[gandalf12]

This rule will be selectively enforced, Hiso no problem Farang big problem.

Doubt if anything would happen if a Thai hired their condo out for a couple of weeks.

[steelepulse]

Wonder what happens if someone initially wants to rent for a month, then decides once they are here that they will instead stay only for two weeks as the two weeks coincide with their flight plans. How does that get enforced if the initial contract was for a month to comply with the hotels act?

[smedly]

Wonder what happens if someone initially wants to rent for a month, then decides once they are here that they will instead stay only for two weeks as the two weeks coincide with their flight plans. How does that get enforced if the initial contract was for a month to comply with the hotels act?

minimum rental one month paid in advance not refundible

I'm not sure who would rent their condo out for less than a month anyway, perhaps to friends and very hard to prove, I don't think this is targeting those people

There are a number of "guest houses" that have rooms for rent on a weekly monthly basis, they are stand alone buildings but not hotels, they are cheaper than hotels, I suspect this is what is being mainly targeted

[madmitch]

always something new to amuse here in LOS, not renting, my friend stay for free, how on earth could such a rule even be enforced

Not too difficult with a little common sense. Just trawl the available units on Airbnb for a start.

Airbnb has grown very quickly. Some cities and countries have been sensible enough to impose a tax on rentals through this website. Other cities and countries want to ban the website. I read recently about the authorities in Florence who have strictly controlled the number of hotel beds available in an attempt to limit the tourist numbers in the city at any one time. The Airbnb model has caused them major headaches.

The thought of limiting tourist numbers anywhere in Thailand would be anathema to most Thai tourism authorities, where numbers are everything, but someone, somewhere is obviously concerned about short term condo rentals. What happens to the condotels?

[Bujan]

 

So a friend want to hire it for 2 weeks not possible. Incredible but not surprising considering were we are.

 

So you hire your condo to your friends ???? what kind of a friendship is this ?

[brewsterbudgen]

Not just in Phuket, my condo in Phra Khanong have put up notices in the lift and on the boards to the same effect. Good thing too!

[mihalis]

That is going to do the Condo market a lot of good. I assume the Thai's complained and are losing money.

Thais complained, a thai bashers reply, why not hotels in phuket, more logical answer ......................

[maoro2013]

What total rubbish. This should not impact on hotels/resorts which offer other services.

Really what has an agreement between two or more people have to do with anyone else.

If this is the case in thailand (or maybe Phuket) then maybe the laws need a restructuring.

[manarak]

As a matter of principle, I cannot support laws that reduce property rights.

They should have made rentals inconvenient by registration, tax collection, etc. but banning private short term rentals is not compatible with ownership.

[yankee99]

So i guess all customers will rent for a month with a refund for early departure

[N2it]

Fact of life in Phuket. Evidently someone's missing their cut. It won't be enforced, can't be. BIB sit all day long in the cop shop and couldn't care less about real crime what do you think this one rates? -10 on a +10 scale...555

The more that gets exposed the worse Phuket looks.

[Suradit69]

As someone who is in a long term rental I support this. The residents where I live have to put up with transient people who having adopted the 'but I'm on holiday so it doesn't matter' mode show little consideration for others.

Drunks in the pool at 4 am are a pain in the backside- they can sleep in all day, we live 'normal lives. Screaming kids running around the pool all day can get on the nerves as well. One badly behaved child can hold an entire complex hostage

People initially bought the condos where I live on the premise that they would be for residents, not transients. Most have changed hands now, with those purchasing them as investment and income opportunities. This is what the Gov't is clamping down on and I see nothing wrong with it.

Some people will regard me as a misery guts for posting the above but hotels are there for a reason. This is my HOME not a holiday, why should I have it disrupted by people who would not behave the same way when they are HOME.

Its a factor people forget when they start bellyaching and all they can come up with 'well, if you don't like it...............'.

"As someone who is in a long term rental I support this. The residents where I live have to put up with transient people who having adopted the 'but I'm on holiday so it doesn't matter' mode show little consideration for others."

I agree. I own my condo and most all of both Thai and foreign long term renters & owners are considerate and well-mannered, but every year during the high season there are a few short-term renters whose behavior is a pain in the derriere for everyone else. If they stayed in a decent hotel they'd be better monitored but here they seem to think they're free to act anyway they like.

[SOTIRIOS]

...may as well just give up all your money etc when you arrive.....

...that is the only reason why you are even allowed in this country.....

...human rights.....long way to go.....

[BlindMagician]

As someone who is in a long term rental I support this. The residents where I live have to put up with transient people who having adopted the 'but I'm on holiday so it doesn't matter' mode show little consideration for others.

Drunks in the pool at 4 am are a pain in the backside- they can sleep in all day, we live 'normal lives. Screaming kids running around the pool all day can get on the nerves as well. One badly behaved child can hold an entire complex hostage

People initially bought the condos where I live on the premise that they would be for residents, not transients. Most have changed hands now, with those purchasing them as investment and income opportunities. This is what the Gov't is clamping down on and I see nothing wrong with it.

Some people will regard me as a misery guts for posting the above but hotels are there for a reason. This is my HOME not a holiday, why should I have it disrupted by people who would not behave the same way when they are HOME.

Its a factor people forget when they start bellyaching and all they can come up with 'well, if you don't like it...............'.

The problems you mention have nothing to do with shirt term let's. Those problems occur regardless. Don't try to solve problem A with solution B that is a surface fix that is not relevant to the core problem.

[Suradit69]

As a matter of principle, I cannot support laws that reduce property rights.

They should have made rentals inconvenient by registration, tax collection, etc. but banning private short term rentals is not compatible with ownership.

The laws exist and existed when the units were acquired or constructed. You can't reduce a "right" that never existed.

Property rights have limits. You can't operate as a hotel or conduct a retail business or raise pigs etc in a condo just because you own a unit.

And when it comes to property rights, what about the rights of the people who bought their units or signed long term rental agreements? There was an explicit or implied assumption that they would be living in a residential building not an unregulated brothel.

[Felt 35]

I support this and as another poster says above the nightly rental is a hassle for people who are in for the long haul. I would like to know what the definition and/or difference between condo and apartment is in Phuket? Is there any difference? Here where we live and have rented for many years its called apartment. They range in size from 25m2 - 50m2. The owners started 3-4 years ago to convert som of the apartments on the ground floor to hotel rooms but now about 30 of 60 apartments are made for "short time" and make the place unlivable especially in the high season. 90% of longstayers are gone, but but the crazy thing which the owners should see themselves and probably do but dont want to admit... the hotel rooms are also very seldom occupied unless Chines groups or Thai tourist comes for a special weekend occasion, or in high season.

Anyway It also seems the owners income are mostly gone because from having a superior green well maintained garden, swimmingpool and well maintained building its should be clear to see for anyone with a trained eye that the place its slowly going down and it seems the only money spent on maintenance now is on the hotel rooms. TAT and the owners here can flirt all they want to the Asian marked but the owners here we stay will never ever make up a fixed monthly rental income from 60 apartments which until a few years ago always was occupied by long time renters and it was usual to have to wait 6 months on that list before a apartment was available.

I know that the sand in the hourglass is running out for me and when I hate to have to change my life because of others neglect, I have to or I will feel as living in an Airport. The funny thing, my Thai wife is more eager to move than me.

[ChoakMyDee]

As someone who is in a long term rental I support this. The residents where I live have to put up with transient people who having adopted the 'but I'm on holiday so it doesn't matter' mode show little consideration for others.

Drunks in the pool at 4 am are a pain in the backside- they can sleep in all day, we live 'normal lives. Screaming kids running around the pool all day can get on the nerves as well. One badly behaved child can hold an entire complex hostage

People initially bought the condos where I live on the premise that they would be for residents, not transients. Most have changed hands now, with those purchasing them as investment and income opportunities. This is what the Gov't is clamping down on and I see nothing wrong with it.

Some people will regard me as a misery guts for posting the above but hotels are there for a reason. This is my HOME not a holiday, why should I have it disrupted by people who would not behave the same way when they are HOME.

Its a factor people forget when they start bellyaching and all they can come up with 'well, if you don't like it...............'.

I don't understand you. If you don't want to be around people, what are you doing in a condo? You should have bought/rented a house outside the city, away from other houses. You shouldn't be upset about children being noisy etc. if you are living in a condo community.

[denkiblue555]

I'd hate to live in any sort of communal arrangement (condo, set of townhouses etc.) with facilities that are shared on a daily basis with tourists.

I don't see why anyone thinks that continually renting a room out in a condo for a few days to different random tourists will not make trouble.

[Netzero]

So no mention of stand alone homes or town homes for rent on a daily basis on the beach - arguably, the Hotel Act would apply to these homes as well.

[crosthwaite]

This law also applies to Chiang Mai, correct?

[LivinginKata]

So no mention of stand alone homes or town homes for rent on a daily basis on the beach - arguably, the Hotel Act would apply to these homes as well.

Authorities just seem to throwing out a big net to see what they can catch.

[LivinginKata]

This law also applies to Chiang Mai, correct?

Yes ... in theory

[manarak]

As a matter of principle, I cannot support laws that reduce property rights.

They should have made rentals inconvenient by registration, tax collection, etc. but banning private short term rentals is not compatible with ownership.

The laws exist and existed when the units were acquired or constructed. You can't reduce a "right" that never existed.

Property rights have limits. You can't operate as a hotel or conduct a retail business or raise pigs etc in a condo just because you own a unit.

And when it comes to property rights, what about the rights of the people who bought their units or signed long term rental agreements? There was an explicit or implied assumption that they would be living in a residential building not an unregulated brothel.

Condo rules are a different thing.

What I am opposed to is a general Law, applicable to everybody everywhere regardless of circumstances, banning short term rentals.

Your last sentence makes me think you experienced some frustration with short term rentals in your condo development?

"implied assumption" ... lol.