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Renting a villa on Airbnb in Thailand
06/12/2023
Thailand, with its stunning beaches, vibrant cities and wide variety of activities for everyone, has always been a popular destination for tourists. This presents a great opportunity for property owners in Thailand to tap into the booming vacation rental market and platforms such as Airbnb. However, navigating the legal requirements and regulations to be able to do so can often be confusing.
In this blog post, we will walk you through the process of renting your villa in Thailand on Airbnb, ensuring that you comply with all the necessary laws and regulations.
Key points
- Previously, any property such as villas with 4 or more rooms and the ability to host 20 people was required to obtain a Hotel licence to legally be able to rent their property on Airbnb for a duration of less than 1 month. Smaller villas required a non-hotel licence
- A recent amendment increased the exemption threshold for requiring villa owners to obtain a hotel license to 8 rooms and 30 guests when renting their villas making it easier for villa owners to to rent their property on Airbn.
- While a hotel license may not be required for villas, owners still need to register their properties with local authorities and Official Registrar.
- Villas must ensure compliance with safety requirements such as lighting, door locks, and bathroom facilities.
Can I rent my villa on Airbnb?
For owners of landed properties, such as villas, the ability to rent out their property for short term periods and the legal requirements for doing so are set out in the Hotel Act. The Hotel Act restricts the usage of villas being rented out on platforms such as Airbnb for short-term rentals (less than 30 days), unless a hotel licence or notification to the local authorities to obtain a non-hotel licence has been made.
An important consideration to be aware of is that if a villa is to be rented out for a period of longer than 30 days, the requirements of the Hotel Act does not apply as this would be considered as a normal lease agreement.
Previously, if a villa had more than four rooms and could accommodate more than 20 occupants at a time, villa owners would need to apply for a hotel licence to legally operate a short-term or holiday rental business, including using platforms such as Airbnb.
Alternatively, if the villa had fewer than four rooms and could not accommodate more than 20 guests at a time, villa owners could apply for a non-hotel licence to operate a short-term rental legally.
Changes to the Hotel License Exemptions
As of December 2023, the Ministerial Regulation Regarding the Types and Criteria for Hotel Business Operations No.2 was introduced. Under this new amendment, the threshold for the exemption from requiring a villa to obtain a hotel licence has been increased from 4 rooms and over 20 guests to eight rooms and 30 guests. This means that if a villa does not cross this threshold it is now exempt from the requirement of obtaining a hotel licence and can rent their villa on Airbnb.
This new regulation is a significant advantage for foreigners who own villas in Thailand and want to rent their property out on Airbnb. Previously, if a villa had more than four rooms and could accommodate 20 or more guests, they would have been required to obtain a hotel licence for short term renting of less than one month, which can be a complex and expensive process. This new exemption means that villas with up to eight rooms and 30 guests can now be rented out without a hotel licence, significantly reducing the administrative burden and cost for foreign owners. This opens up the possibility of renting their villas to a wider range of guests, including families and larger groups, and potentially boosting their rental income. Additionally, it removes the need to comply with the stricter regulations and standards imposed on hotels, allowing for more flexibility in managing their rental business such as using online renting platforms such as Airbnb.
Do Villas need to register with the local authorities if they are rented on Airbnb?
Even though a villa may no longer be required to apply for a hotel licence, the owner will still be required to register their villa with the local authorities and Official Registrar. These registrations can be done online and will be valid for five years, and can be renewed every 5 years.
Villas will also be subject to inspections by the authorities to make sure the safety requirements are being complied with. Examples of the required safety criteria, includes:
- having sufficient lighting.
- fitting internal door locks.
- being exempt from needing a door peephole.
- provide suitable bathroom facilities and beds.
Can I rent my Condo on Airbnb?
If you own a condominium and are considering renting it out on a short-term basis by using a platform such as Airbnb, there are specific legal considerations you need to be aware of. The two key acts that govern short-term rentals in condominiums are the Condominium Act B.E. 2522 (1979) and the Hotel Act B.E. 2547 (2004).
According to the Condominium Act, section 17/1 paragraph 2, operating a business in a condominium unit is generally prohibited, unless it is within the specific area designated for such activities. This regulation also applies to short-term rentals facilitated through online platforms like Airbnb.
Additionally, the Hotel Act defines a “hotel” as a lodging premise established for commercial purposes to provide temporary accommodation to travellers. As a result, short-term rentals in condominium units are generally considered temporary accommodations and may be subject to the restrictions of the new regulations.
While the Thai Civil and Commercial Code grants owners the right to enjoy their property without disturbing others, the Condominium Act specifically prohibits the use of condominium units for short-term rentals.
How can Belaws help?
For more information about owning or renting a villa in Thailand, why not talk to one of our experts now?
Please note that this article is for information purposes only and does not constitute legal advice.
Our consultations last for a period of up to 1 hour and are conducted by expert Lawyers who are fluent in English, French and Thai.
Consultations can be hosted via WhatsApp or Video Conferencing software for your convenience. A consultation with one of our legal experts is undoubtedly the best way to get all the information you need and answer any questions you may have about your new business or project.
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Frequently asked questions
Are airbnbs legal in Thailand?
Yes, Airbnb and short-term rentals have legal considerations under the Hotel Act, with recent amendments affecting licensing thresholds for villa owners.
Is Airbnb in Thailand profitable?
In 2024 Recent legal amendment are reducing the need for certain licenses for villa owners, and administrative burdens and costs, potentially boosting rental income.
Can you rent a villa on Airbnb in Thailand?
Yes, it is possible to rent a villa on Airbnb in Thailand but there are legal requirements and following recent amendments in 2024.
What are the legal requirements for renting a villa on Airbnb in Thailand?
Legal requirements include compliance with the Hotel Act, registration with local authorities, meeting safety criteria, and recent changes regarding licensing thresholds for villas.
Is it possible to rent out my property for short-term periods on Airbnb?
Yes,there are short-term rental possibilities for properties, specifically villas, on platforms like Airbnb, considering legal stipulations.
Are there any specific regulations for renting a villa in Thailand?
Yes it possible but there are regulations under the Hotel Act, including licensing requirements and safety compliance for villa rentals.
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