BANGKOK — Administrative officials have inspected condominium units in Bangkok’s Pratunam area where foreigners were illegally offering daily rental services through popular applications. They also arrested operators of illegal hotel businesses in the Huai Khwang-Sutthisan area.
On March 6, Mr. Chaiwat Junthirapong, Director-General of the Administrative Department, revealed that he assigned the Investigation and Legal Affairs Office to investigate. Undercover officials posed as tourists, using the reported application to communicate with landlords and book two rooms—numbers 1001 and 914—in the complained-about condominium building for one night on March 5, at a rate of $82.40 USD per room.
The undercover agents made contact to check in at 2:00 p.m. as scheduled. Later, an individual presented themselves with keycards and escorted the undercover agents to open the rooms. Once inside, the agents found that the accommodations resembled typical hotel rooms in every way, constituting a violation under hotel laws.
Mr. Chaiwat and officials then revealed their identities and conducted an inspection. They discovered three additional room keys in the bag of the person who had escorted the undercover agents. Evidence was collected and a complaint filed with Phaya Thai Police Station investigators to prosecute the room owners and related parties for operating a hotel business without a license.
Three Illegal Hotel Operations Busted
On the same day, Mr. Ratthawich Jitsujaritwong, a legal expert from the Investigation and Legal Affairs Office, led administrative officers to inspect accommodations offering daily rentals without hotel business licenses in the Huai Khwang-Sutthisan area.
They found three unlicensed daily rental establishments: The Athena, offering 53 monthly and daily rental rooms; The Oasis, with 120 rooms total, 40 of which were rented monthly and daily; and Chang, with 98 rooms for monthly and daily rentals. Officials conducted inspections, made arrests, and filed complaints with Sutthisan Police Station.
Problem Extends to Hadyai, Songkhla
Beyond Bangkok, Sitthipong Sitthipattraprapha, President of the Hat Yai Hotel Association in Songkhla Province, stated that condominium investments for daily rentals in Songkhla have been increasing among both Thai nationals and foreigners, especially Malaysian investors purchasing real estate and starting daily rental businesses.
He identified three groups: first, condominiums rented daily by unit owners or by monthly tenants who sublease on a daily basis; second, daily rental houses ranging from commercial buildings to pool villas; and third, monthly apartment buildings that also offer daily rentals.
Dr. Sitthipong noted that these illegal business operators haven’t obtained permits for daily accommodation services and don’t pay taxes equivalent to hotel operators—or don’t pay at all—impacting the overall accommodation industry through unequal operating costs. Searches on applications found more than 400 such operators in Hat Yai district alone, a number that will continue to grow without proper regulation.
Foreign Investors Using Nominees
“Renting condominium units daily without permission violates the Hotel Act of 2004, which carries penalties of imprisonment not exceeding one year, fines not exceeding 20,000 baht, or both, plus additional daily fines up to 10,000 baht for continuing violations. The Administrative Department has also learned that some condominium owners renting units daily involve foreign investors using nominee systems, which violates the law and is under further investigation,” Mr. Chaiwat said.
He added that the department is currently studying and updating relevant laws to address these issues in line with current conditions, and encouraged citizens who witness such activities to report them by calling 1567 any day.
Issue Raised in Parliament
On the same day at parliament, Bangkok MP Karunphon Thiansuwam of the People’s Party raised an urgent verbal question about foreign businesspeople renting out daily accommodations. Deputy Interior Minister Theerarat Samretwanich responded that daily rentals are not permitted, and officials from multiple agencies—the Administrative Department, Ministry of Interior, and Ministry of Commerce—are working together on this issue.
For businesses registered as legal entities, authorities must verify land and rental property ownership rights. The government has established penalties for violators, including both imprisonment and fines for unauthorized hotel operations, with additional daily 10,000 baht fines for continued violations.
Ms. Theerarat stated that the arrests of foreigners conducting illegal condominium rental businesses should serve as a warning to other Thai renters to avoid violations and to cooperate with condominium juristic persons. She noted that past enforcement efforts have included inspections, arrests, and fines, and encouraged cooperation from residents and juristic persons.
Legal Rentals Must Exceed One Month
The Deputy Interior Minister further explained that condominium owners can legally rent their properties, but rentals must exceed one month in duration, which is a right protected by law and the constitution. The failure to prevent daily rentals that disturb other tenants requires cooperation from all parties. Past failures often resulted from juristic persons lacking proper understanding and residents being unaware of their rights, necessitating longer-term education for both residents and juristic persons.
While laws must be updated to better reflect current conditions, foreign ownership of condominium units is limited to 49% of a building, a proportion that may be reduced in the future.
Illegal Gambling Dens in Condo
Karunphon raised additional concerns about Rama IX and Rama III areas, where raids have uncovered foreigners renting entire floors for illegal businesses like online gambling dens, with foreign-language signs posted outside rooms. Despite residents reporting these activities to juristic persons, the information wasn’t forwarded to local authorities.
He asked whether the Interior Ministry would establish cooperation agreements allowing officials to enter juristic person areas or enabling residents to contact officials directly without going through juristic persons.
Foreign Ownership Limits Under Review
The minister explained that opinions are being gathered regarding the proportion of foreign unit ownership. The previous proposal to increase foreign ownership rights under former Prime Minister Srettha Thavisin’s government remains under consideration.
Regarding illegal gambling operations, officials can take action, and if juristic persons are found to be uncooperative in verified cases of wrongdoing, legal proceedings can be initiated.
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