Airbnb Condo Rentals in Bangkok Face Government Probe

Interior Minister Anutin Charnvirakul has told a press briefing that authorities are investigating allegations that Chinese nationals have illegally rented out their condominiums through Airbnb, violating the 2024 Hotel Act.

On Wednesday, he stated that the Department of Provincial Administration is examining reports that Chinese nationals have purchased condo units and are renting them to other foreigners, especially in the Sukhumvit Road area.

“Anyone renting out hotel rooms or condo units must have proper licences and comply with the Interior Ministry’s regulations,” he said.

He also clarified that the foreign ownership quota for condominium units remains capped at 49%. Anutin mentioned an earlier directive from former prime minister Srettha Thavisin asking the Interior Ministry to consider raising the foreign ownership quota in condos to 75%, noting that this is still under review.

The issue was highlighted on the Drama Addict Facebook page, which alleged that Chinese investors have been renting condos out to foreigners. These investors reportedly leave keycards and keys in lockboxes, providing renters with codes to access them. When renters leave, they are instructed to return the keys or keycards to the condo units.

The matter gained attention when a key box was found near a somtam stall, leading to police intervention. Upon investigation, officers discovered a foreign tourist using the keys to access a condo. According to the Facebook page, the condo owner has since faced legal action.

It’s been reported that several condo units in Soi Sukhumvit 42 are being rented out short-term on Airbnb. Complaints have surfaced about renters causing disturbances, such as excessive noise, affecting other residents.

Anutin emphasized that Airbnb rentals violate the Hotel Act. Without a licence, those renting out rooms daily could face fines of up to 20,000 baht, with an additional daily penalty of 10,000 baht until the illegal activity stops.

Condo regulations often prohibit daily rentals to protect residents’ privacy and ensure safety. A similar situation was reported in Soi Sukhumvit 48/2 in the Klong Toey district, where keycards were stored in lockboxes near a motorcycle repair shop. The shop owner, who received 10,000 baht monthly to host the lockboxes, claimed he was unaware of the illegality and has offered to cooperate with the investigation.

Best Wongpairojkul, deputy spokesperson for the Thai Sang Thai Party, urged the government, Interior Ministry, and Immigration Bureau to address these illegal rentals. He warned that such activity could allow criminals access to properties and endanger residents. He also pointed out that this undermines condo management and raises concerns about government transparency, potentially affecting the economy and security.

Rangsiman Rome, an MP from the opposition People’s Party, shared that he has also received complaints about illegal condo rentals. He noted cases where Chinese nationals own up to 80% of condo units and urged the government to work with condo developers to address the issue immediately.

Airbnb and the Hotel Act of 2004

The Hotel Act of 2004 makes it illegal to run a hotel business without a proper license. This law defines a hotel as a business set up to offer temporary accommodation to tourists in exchange for payment.

Under the Hotel Act, renting out your home on Airbnb is considered running a hotel. If a host operates without the necessary licence issued by the hotel registrar, they could face up to one year in jail or a fine of up to THB 20,000. Additionally, they may be charged a daily fine of up to THB 10,000 for as long as the violation continues.

The Hotel Act outlines specific exceptions where a hotel licence is not required for Airbnb. These include:

1. Temporary accommodations provided by a government agency for non-profit purposes.
2. Long-term rentals designed for monthly or longer stays.
3. Other types of accommodation outlined in the 2008 Ministerial Regulation.

Monthly rentals are common and don’t need a hotel licence. However, short-term rentals like Airbnb for daily or weekly stays are not covered under the second exemption, as they fall under the definition of a hotel.

Under the 2008 Ministerial Regulation, certain properties may qualify for exemption under the third category if they meet these conditions:

• The property offers no more than four rooms in one building or across multiple buildings.
• The total number of guests must not exceed twenty.
• The income earned from providing lodging must only serve as supplementary income for the host.
• The host is required to notify the registrar about the accommodation.

This distinction is important for understanding when a hotel licence is necessary and when lodging can operate under these exemptions.