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

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

The Phuket News

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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.”
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-- Phuket News 2016-07-02

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

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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

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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...............'.

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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.

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

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

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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.

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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?

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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

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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?

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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 ?

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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!

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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 ......................

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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.

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