Classifieds 50% off, use promo code FBkpkPromo The Phuket News Kata Rocks The Phuket News Outrigger Koh Samui Beach Resort
The Phuket News Business News
The Phuket News Phuket | Thailand | World | Business | Q&A | Weird World XML, RSS, Feed
The Phuket News The Phuket News
The Phuket News

Phuket Law: Restrictions eased on short-term rentals

PHUKET: Earlier this year it came to light that most villa or condominium unit owners who are renting out their property on a short-term basis – that is, for periods of less than 30 days – are most likely violating the Hotel Act (2004) if they do so without having received a hotel license.

property, crime, economics, construction,


Jerrold Kippen

Sunday 20 November 2016, 01:00PM


The potential punishment for such violation includes significant fines, or imprisonment, or both. (See stories here and here.)

Historically however, obtaining a hotel license for most such owners has been very difficult – if not impossible. A major reason for this is that in order to obtain a hotel license the property must comply with the requirements for certification for use of the property as a hotel under the “BCA” – the Building Control Act (1979).

Tourism is one the most significant contributors to the Thai economy, and many people are tempted to, and currently do, invest in properties to take advantage of this lucrative market without a requisite hotel license.

This has created a tension between the need to enforce the law and the desire to maintain a robust tourism industry and investment market. As we have pointed out previously, one way to accommodate both of these very legitimate and currently competing concerns would be to liberalise restrictions that apply to a variety of such properties. Thus, we are pleased to see that the current government has recently taken one such step.

On August 19, Thailand’s Ministry of Interior Ministerial Regulation Prescribing Descriptions of Other Types of Building Used for a Hotel Business Operation 2016 under the Building Control Act (1979) became effective.

This Ministerial Regulation (“MR”) should make it easier for more property owners to obtain a hotel license.

The MR will remain in effect for five years.

However, it applies only to buildings that existed before it came into force and whose owners desire to use the property as “Hotel” (as defined by the Hotel Act) with either:

(a) rooms only; or

(b) rooms and food service/restaurant facilities.

The three categories of buildings that are eligible for this re-classification are as follows:

C and C Marine

Type 1: a building with not more than two floors and not more than 10 rooms;

Type 2: a building that is not a Type 1 building and which does not have more than 20 rooms; and

Type 3: a building that is not a Type 1 building and which does have more than 20 rooms.

The MR liberalizes the various Hotel usage-building requirements under the BCA for these types of buildings. (For example, see table.)

An application to change the usage a building to a hotel under the BCA must be completed within five years from the date the MR came into force.

However, if the building requires structural modification before applying to change its usage to a hotel, that application – or notification under Section 39(bis) of the BCA – must be filed within two years.

It also should be noted that the building must still comply with other BCA regulations regarding hotel usage in force at the time the building was originally constructed (or altered), regarding such matters as the building’s height, setback and parking.

In closing, it should be noted that the MR does not mean that all owners who want to rent their properties on a short-term basis and whose properties do or can comply with the MR will now be able to legally do so.

There are other laws that need to be considered and which may restrict such use – particularly with regard to condominiums, and all the more so with regard to foreigners. Thus, caution and clarity are advisable before taking steps to take advantage of the MR.

That said, the MR is a very welcome step in the right direction for the tourism and real estate investment markets in Thailand.


DUENSING KIPPEN is an international law firm specializing in business transaction and dispute resolution matters, with offices in Bangkok and Phuket, Thailand and affiliated offices in over 100 other jurisdictions worldwide. Visit them at duensingkippen.com

 

 

The Phuket News
The Phuket News
Comment on this story
* Please login to comment. If you do not have an account please register below by simply entering a username, password and email address. You can still leave your comment below at the same time.
Comments Here:
Username:
Password:
E-mail:
CAPTCHA
    Forget your password?

Andy | 21 November 2016 - 15:33:27

I think I must be stupid because I cant quite work out the difference between Type 2 and Type 3
A three floor building cannot have more than 10 rooms but a single or two floor building can have 20 rooms. I am sure this makes sense to someone but not me. Anyone seen any condos with two floors or less or any with less than 20 rooms?

The Phuket News

Kurt | 20 November 2016 - 19:05:04

Mhhh, a lot dog wag tail stuff first about property for sale.. ( price reduced for quick sale. ..Owner will look to listen to any offer,..Owner wants any offer, wants to sell quick, etc, etc)
Now the Phuket property rental market is following in this.
Not surprising.

When Thailand start to realize that foreign buyers, renters not feel any affinity with all these thai 'foggy/misty' rule/regulations, which is just thai offce desk justifying, but not give foreigners any protection?
And now I am not yet mention about the Thai land offices.
Illegal handed out chanotes all over Thailand.
Conformed by all the present demolitions right now.

The Phuket News
Matches 2 result(s)
The Phuket News
The Phuket News
The Phuket News
The Phuket News The Phuket News The Phuket News
The Phuket News
Share this
The Phuket News
Have a news tip-off? Click here
The Phuket News
Related stories
The Phuket News
Phuket community

Recent Comments


World overdue for ‘shake-up’

You're wrong there, he wasn't against Brexit, he actually thought it was great if you watch the TV interview on good morning Britain!...(Read More)


Phuket coral reef dive sites get helping hand to recover from mass tourism

All very well but I have just come back from a week in Phi Phi where I witnessed in Laem Thong and Ao Lanna speedboats taking (mostly Chinese tourists...(Read More)


Two Thai men arrested in Phuket for drug possession

the guy on the left sells drugs to tourists on the street near molly malones / macdonalds on taweewong st (beach rd) on night most nights.If he is bai...(Read More)


Man challenges PM Prayut, army, police chiefs to gunfight

Have a happy Bike Week Not Guilty Under Section 32 of the Mental Health Act TRAUMATIC BRAIN INJURY SURVIVAL GUIDE By Dr. Glen Johnson, Clinical N...(Read More)


Phuket late-night motorbike accident in Kamala hills leaves one dead, one injured

Another senseless death at the hands of another irresponsible reckless fool. And why no mention of blood alcohol test??? I'm with Simon01...this...(Read More)


Phuket woman crushed under tour bus, 3-year-old daughter survives

The Drivers who run away do so to give their system to get rid of alcohol or drugs!They often give an excuse that they were afraid local might turn up...(Read More)


Two Thai men arrested in Phuket for drug possession

Kurt...given your intimate knowledge of the drug trade, you should put your name forward to assist authorities in curbing the drug trade....(Read More)


Marmite might be brain food: Study

Rorii...lol...yep eagle's comment "Whoever feels personally addressed" is true to form. ...(Read More)


Phuket late-night motorbike accident in Kamala hills leaves one dead, one injured

simon01 ... best you do a bit of research to learn what is required for a charge of manslaughter. "Trusted him to get her home?" how do you ...(Read More)


Phuket late-night motorbike accident in Kamala hills leaves one dead, one injured

simon01,he should get arrested for manslaughter,because both did not wear a helmet?Ridiculous!...(Read More)

The Phuket News
Bangkok Hospital Phuket
PHUKET NEWS
Phuket
Thailand
World
Business
Q A
Weird World
ARCHIVE
POLL
CURRENCY
WEATHER
PHUKET TIDE TABLE
The Phuket News PHUKET LIFE
Phuket Arts
Phuket Community
Phuket Culture
Phuket Dining
Phuket Education
Phuket Entertainment
Phuket Environment
Phuket Health
Phuket People
Phuket Technology
Phuket Travel
Photo Galleries
COLOURING BOOK
The Phuket News PHUKET SPORT
Phuket
Thailand
World
SURF REPORT
PREDICTIONS
The Phuket News PHUKET CLASSIFIEDS
Phuket Buy and Sell
Phuket Jobs
Phuket Property
Phuket Cars and Boats
Phuket Community
Phuket Services
SEARCH CLASSIFIEDS
POST CLASSIFIED
The Phuket News The Phuket News PHUKET EVENTS
Phuket Event listings
Phuket Event calendar
Buy Tickets
POST EVENT
The Phuket News PHUKET DIRECTORY
Phuket Bars, pubs and clubs
Phuket Hotels and villas
Phuket Restaurants
Phuket Yellow Pages
POST LISTING
The Phuket News BARGAINS
The Phuket News ABOUT US
The Company
Distribution points
Subscribe
Advertise with us
Pay for advert
Contact us
CONTESTS
Content Google Map
Site map
Australian Visa Services
 
Currency - The Phuket News   Weather Report - The Phuket News   Surf Report - The Phuket News
LinkedIn - The Phuket News   Twitter - The Phuket News   YouTube - The Phuket News   Facebook - The Phuket News
Copyright © 2017 Class Act Media. All rights reserved. | Website usage terms and conditions | Privacy and Confidentiality Statement.