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

[KittenKong]

If the juristic body of the condominium or the condo owners association were to have the condo legalities include a clause that clearly and legally states that no condo can be rented for use as a business or hotel like accommodations or sub leased or bed and break fast type of affair, then, as a potential condo owner, you would decide if that is suitable for you or not.

If that is already in the rules and regulations and the by laws of that particular condo then you are already in violation of the agreement and the condo juristic body will deal with you....not the vested interests Hotel Association of Phuket who are going to write the rules as they see fit and to their monetary benefit.

Easy enough to do if those writing the rules have some notion of concise and logical thought. Unfortunately this is not the case here. Even the Thai language does not lend itself to concise and accurate descriptions.

By the time those really concerned with the way the building works (ie resident co-owners) have created a committee and organised themselves, the building regs are already in place and - due to the general clause requiring the agreement of 75% of all co-owners to change them - they are very unlikely to ever get changed.

And of course even if a building is lucky enough to have such clauses in its rules, it still has very little power to enforce them. And if management and the committee aren't strongly motivated it will have no reason to enforce them either. My own building has many rules, but few are ever implemented.

[happy chappie]

For rent...one air conditioner remote 650 baht a night with free room for testing the remote works ok.should be along the lines of the U.K. Caravan sites.some are private with no letting and some they can rent.whats to stop a lunatic renting for a month and the building management should sort out complaints.also what if a person lets their friends stay for free for a week or so and they are drunken lunatics.a good few people have purchased condos with the thought of earning a bit of return holiday letting and now they've just shot themselves in the foot again with another bs law.when you buy a condo,you get what you see.the same as when you get a council flat in the uk.i can see condo prices falling faster than the pound.

[newnative]

It seems to me that it wouldn't be allowed for a condo to approve a condo rule or regulation that goes against Thai law. If Thai law forbids daily rentals of condos, for example, I don't think a condo could overrule this law. But, I could be wrong.

[denkiblue555]

How does this scenario fit in with this, You buy a condo but dont live there permanently you use it for holidays and breaks between jobs. A friend is passing through Thailand on their way to a job and you suggest he can stay in your condo.

So you dont charge but you are essentially renting it to him for a few days as zero cost. Presumably this is also not allowed. Anyone any ideas on this?

First, I would need a good calculator

As no money is being charged, nobody is renting / leasing anything.

This thread is about holiday rentals not visiting friends. As far as I am aware Thailand doesn't legislate against visiting friends?

Actually, under the "House and Land Tax Act." even if non paying friends stay at your house/condo, you must pay tax.

Read this

http://www.thephuketnews.com/phuket-law-is-your-house-or-condo-an-illegal-hotel-57225.php

That is only if you are a company yeah?

If I have a friend come and stay at my 'private' residence....whether I am there or not, is that really a taxable situation?

[denkiblue555]

How does this scenario fit in with this, You buy a condo but dont live there permanently you use it for holidays and breaks between jobs. A friend is passing through Thailand on their way to a job and you suggest he can stay in your condo.

So you dont charge but you are essentially renting it to him for a few days as zero cost. Presumably this is also not allowed. Anyone any ideas on this?

First, I would need a good calculator

As no money is being charged, nobody is renting / leasing anything.

This thread is about holiday rentals not visiting friends. As far as I am aware Thailand doesn't legislate against visiting friends?

In theory it is a rental because a person or persons who are not the owner are staying there

I don't see how this is possibly a taxable situation if a friend stays at your private residence for free.

[NamKangMan]

It seems to me that it wouldn't be allowed for a condo to approve a condo rule or regulation that goes against Thai law. If Thai law forbids daily rentals of condos, for example, I don't think a condo could overrule this law. But, I could be wrong.

If more than 50% on condo owners, in the condo building, voted to allow short term rental, and the various taxes were paid and Thai laws followed, what could the minority of condo owners do in that particular block????

[DrDave]

It seems to me that it wouldn't be allowed for a condo to approve a condo rule or regulation that goes against Thai law. If Thai law forbids daily rentals of condos, for example, I don't think a condo could overrule this law. But, I could be wrong.

If more than 50% on condo owners, in the condo building, voted to allow short term rental, and the various taxes were paid and Thai laws followed, what could the minority of condo owners do in that particular block????

"Short term rental" and "Thai laws followed" are contradictions in buildings registered as condominiums. By law, short term rentals are not permitted in registered condominiums.

Regardless of what CC&R amendments have been approved, the minority of owners that don't want these rentals in their building could rat out the owners that are doing short term rentals, subjecting them to the penalties as defined in the law.

[NicoBKK]

Fully agree, not safe nor pleasant to live with neighbours coming and leaving on regular basis.

[MediaWatcher]

How does this scenario fit in with this, You buy a condo but dont live there permanently you use it for holidays and breaks between jobs. A friend is passing through Thailand on their way to a job and you suggest he can stay in your condo.

So you dont charge but you are essentially renting it to him for a few days as zero cost. Presumably this is also not allowed. Anyone any ideas on this?

First, I would need a good calculator

As no money is being charged, nobody is renting / leasing anything.

This thread is about holiday rentals not visiting friends. As far as I am aware Thailand doesn't legislate against visiting friends?

Actually, under the "House and Land Tax Act." even if non paying friends stay at your house/condo, you must pay tax.

Read this

http://www.thephuketnews.com/phuket-law-is-your-house-or-condo-an-illegal-hotel-57225.php

That is only if you are a company yeah?

If I have a friend come and stay at my 'private' residence....whether I am there or not, is that really a taxable situation?

Did you actually READ this paragraph

"If you or your company own a condominium unit or villa here in Thailand that was used – even if only for one day – by someone other than its legal owner with or without you having received rental income, then you or your company have incurred liability under the House and Land Tax Act (1932) (HLT)" specifically the YOU or.

[Globalist]

"Short term rental" and "Thai laws followed" are contradictions in buildings registered as condominiums. By law, short term rentals are not permitted in registered condominiums.

Regardless of what CC&R amendments have been approved, the minority of owners that don't want these rentals in their building could rat out the owners that are doing short term rentals, subjecting them to the penalties as defined in the law.

Incorrect. There is no such law in Thailand.

[DrDave]

"Short term rental" and "Thai laws followed" are contradictions in buildings registered as condominiums. By law, short term rentals are not permitted in registered condominiums.

Regardless of what CC&R amendments have been approved, the minority of owners that don't want these rentals in their building could rat out the owners that are doing short term rentals, subjecting them to the penalties as defined in the law.

Incorrect. There is no such law in Thailand.

Maybe you should educate the Vice Governor, the Phuket Land Office Acting Chief, the MoI and the PPO on that point.

From the OP:

'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.'

'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.'

The Hotel Act of 2004 (which they reference) and the Condominium Act are components of Thai law.

[Globalist]

"Short term rental" and "Thai laws followed" are contradictions in buildings registered as condominiums. By law, short term rentals are not permitted in registered condominiums.

Regardless of what CC&R amendments have been approved, the minority of owners that don't want these rentals in their building could rat out the owners that are doing short term rentals, subjecting them to the penalties as defined in the law.

Incorrect. There is no such law in Thailand.

Maybe you should educate the Vice Governor, the Phuket Land Office Acting Chief, the MoI and the PPO on that point.

From the OP:

'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.'

'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.'

The Hotel Act of 2004 (which they reference) and the Condominium Act are components of Thai law.

Yes, they may very well be in need of education.

I have read those acts. Have you?

[webfact]

Please continue:

Crackdown on condo owners confirmed
Phuket Gazette


Phuket Vice Governor Chokdee Amornwat reaffirmed today a tough new stance against accommodation owners operating illegally as hotels. Photo: Kritsada Mueanhawong

PHUKET: -- Condominium owners in Phuket caught renting out their units on a daily basis face fines and jail time if they do not register their properties as hotels.

Full story: http://www.thaivisa.com/forum/topic/929874-crackdown-on-phuket-condo-owners-confirmed/

//CLOSED//

/Admin