Can Condominiums Be Rented Out Daily?

One of the current legal issues regarding daily condominium rentals is whether it is legal or not.

This article does not aim to provide loopholes to evade the law that could cause harm to others. Therefore, there will be no discussion of “the benefits of daily condominium rentals” here.

Typically, condominium owners or property owners can use their property for any purpose as long as it complies with the law. Currently, there is no law stating that daily condominium rentals are prohibited.

However, here are the risks that may prevent daily condominium rentals:

1. The Hotel Act of 1935 states that a condominium cannot be registered as a hotel because it cannot protect consumers according to hotel regulations.

2. The Building Control Act of 1979 grants legal entities the right to inspect if there is damage to common property, including the right to sue for defamation if there is advertising that claims to operate a rental business like a hotel.

However, these two cases are merely “risks” associated with rental investments. Operators are therefore seeking solutions by exploiting the loopholes in the Ministerial Regulation defining the types and criteria for hotel businesses in 2008, which states that accommodations with no more than four rooms in the same building or across multiple buildings, and a total of no more than twenty guests, are considered temporary services and not classified as hotels.

The Ministerial Regulation defining the types and criteria for hotel businesses, B.E. 2551, specifies accommodations that are not classified as hotels and the types of hotels as follows: accommodations with no more than four rooms in the same building or across multiple buildings, established to provide temporary lodging for travelers or any other individuals for compensation, which is a business operation for supplementary income and has notified the registrar as prescribed by the minister, are not classified as hotels according to (3) of the definition of the term “hotel” in Section 4.

Investing in real estate is another form of wealth management that carries moderate risk. Additionally, online media covers all markets, including daily and monthly rentals. Many project owners or real estate developers who target investors rather than actual residents provide information that it can be done without issues.

However, living together without proper management can lead to problems everywhere. Common issues include theft, loud noise, and rowdy behavior, especially in condominiums located in popular tourist areas.

In conclusion!!

The latest ruling from the court found significant violations of more than four laws, including the Hotel Act, the Building Control Act, the Alien Act, and the Public Health Act. Moving forward, rulings regarding daily rentals will gradually emerge to establish clear precedents to close existing loopholes. The gap that we, as Thais, have is a public consciousness towards society as a whole.

Article by: TerraBKK Investment Tips

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